Delaware (State or other jurisdiction of incorporation or organization)

22-35-31960 (I.R.S. Employer Identification No.)

				Page
Part I.		Financial Information
Item 1.		Financial Statements
		Condensed Consolidated Balance Sheets as of June 30, 2002 (Unaudited) and December 31, 2001		1
		Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2002 and 2001 (Unaudited)		2
		Condensed Consolidated Statements of Operations for the Six Months Ended June 30, 2002 and 2001 (Unaudited)		3
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2002 and 2001 (Unaudited)		4
		Notes to Condensed Consolidated Financial Statements (Unaudited)		5
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		10
Item 3.		Quantitative and Qualitative Disclosure About Market Risk		20
Part II.		Other Information
Item 1.		Legal Proceedings		20
Item 5.		Other Information		21
Item 6.		Exhibits and Reports on Form 8-K		21
Signatures				22

		June 30, 2002 (Unaudited)				December 31, 2001
Cash and cash equivalents		$	30,579,958			$	53,193,357
Marketable securities			91,898,921				94,361,251
Accounts receivable, net			25,672,945				21,189,007
Prepaid expenses and other current assets			3,399,023				2,875,980
Total current assets			151,550,847				171,619,595
Property and equipment, net			39,671,658				42,359,300
Goodwill			7,913,319				—
Intangible assets, net			2,938,942				101,648
Other assets			1,292,067				1,300,700
Total assets		$	203,366,833			$	215,381,243
Accounts payable and accrued liabilities		$	26,661,826			$	27,579,480
Other liabilities			696,590				734,365
Equipment note payable			—				1,196,660
Current portion of capital lease obligations			2,628,431				3,290,981
Total current liabilities			29,986,847				32,801,486
Capital lease obligation, less current portion			970,944				1,976,676
Common stock			46,532				45,726
Additional paid in capital			459,415,850				456,216,326
Deferred employee compensation			—				(1,394,722	)
Accumulated other comprehensive income			127,597				660,354
Accumulated deficit			(287,180,937	)			(274,924,603	)
Total stockholders’ equity			172,409,042				180,603,081
Total liabilities and stockholders’ equity		$	203,366,833			$	215,381,243

		Three Months ended June 30,
		2002				2001
Total revenue		$	65,996,824			$	38,800,709
Costs and expenses:
Data communications and telecommunications			56,308,210				34,035,816
Network operations			1,937,592				2,242,574
Selling, general and administrative			7,050,823				11,204,372
Depreciation			6,196,526				4,911,955
Amortization			96,354				6,706,776
Write-off of intangibles			—				108,022,251
Restructuring charges			151,255				—
Non-cash employee compensation			697,362				876,317
Total costs and expenses			72,438,122				168,000,061
Loss from operations			(6,441,298	)			(129,199,352	)
Interest income, net			681,697				2,428,270
Net loss		($	5,759,601	)		($	126,771,082	)
Basic and diluted net loss per share		($	0.12	)		($	2.80	)
Weighted average shares used in computation of basic and diluted net loss per share			46,141,328				45,265,214

		Six Months ended June 30,
		2002				2001
Total revenue		$	123,708,958			$	74,943,575
Costs and expenses:
Data communications and telecommunications			104,912,559				66,059,389
Network operations			3,888,195				4,410,126
Selling, general and administrative			14,081,768				26,217,174
Depreciation			11,919,657				9,495,715
Amortization			102,706				13,380,094
Write-off of intangibles			—				108,022,251
Restructuring charges			1,230,087				250,000
Non-cash employee compensation			1,394,722				1,752,633
Total costs and expenses			137,529,694				229,587,382
Loss from operations			(13,820,736	)			(154,643,807	)
Interest income, net			1,564,402				5,145,133
Net loss		($	12,256,334	)		($	149,498,674	)
Basic and diluted net loss per share		($	0.27	)		($	3.31	)
Weighted average shares used in computation of basic and diluted net loss per share			45,914,988				45,203,373

		Six months ended June 30,
		2002				2001
Operating activities
Net loss		$	(12,256,334	)		$	(149,498,674	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			11,919,657				9,495,715
Amortization of intangibles			102,706				13,380,094
Write-off of intangibles			—				108,022,251
Provision for doubtful accounts			404,028				5,476,844
Non-cash restructuring charges			559,912				—
Realized gain on sale of investments			(40,628	)			—
Amortization of non-cash deferred employee compensation			1,394,722				1,752,633
Amortization of original issue discounts			(62,575	)			(867,650	)
Changes in operating assets and liabilities:
Increase in accounts receivable			(4,887,966	)			(6,943,441	)
Increase in prepaid expenses and other assets			(588,973	)			(2,298,657	)
(Decrease) increase in accounts payable and accrued expenses			(975,937	)			3,243,372
Decrease in other liabilities			(37,775	)			(142,203	)
Net cash used in operating activities			(4,469,163	)			(18,379,716	)
Investing activities
Purchase of property and equipment			(8,909,593	)			(9,650,010	)
Purchase of Nexcom			(9,051,716	)			—
Acquisition costs			—				(385,353	)
Purchase of available for sale securities			(88,539,587	)			(71,953,389	)
Sale of available for sale securities			29,383,004				21,356,121
Maturities of available for sale securities			61,492,833				93,076,033
Net cash (used in) provided by investing activities			(15,625,059	)			32,443,402
Financing activities
Repayment of equipment line of credit			(1,196,660	)			(239,477	)
Repayment of capital lease obligations			(1,668,282	)			(2,319,427	)
Proceeds from exercise of stock options			324,168				813,546
Proceeds from issuance of common stock related to employee stock purchase plan			325,071				—
Net cash used in financing activities			(2,215,703	)			(1,745,358	)
Effect of exchange rate fluctuations on cash			(303,474	)			132,591
(Decrease) increase in cash			(22,613,399	)			12,450,919
Cash and cash equivalents at beginning of period			53,193,357				36,768,527