Press Releases


Globix Reports Fiscal Second Quarter Results

NEW YORK – April 24, 2001

Globix Corporation (NASDAQ: GBIX) today announced record financial resultsfor its fiscal second quarter 2001, which ended March 31, 2001.

For the quarter, Globix posted record revenue of $26.8 million, a 50% increase over revenue of $17.9 millionin the second quarter of fiscal 2000. Internet revenue for the quarter was 94% of total revenue, or $25.1million, a 143% increase over the same quarter last year.

EBITDA loss (loss before net interest expense, income taxes, depreciation and amortization and non-recurringlease termination and other equipment-related costs) was $12.0 million for the quarter, compared to $15.4million for the same quarter last year, a 22% decrease and down 21% from the $15.2 million for the firstquarter of fiscal 2001, which ended December 31, 2000.

Net interest expense was $11.7 million for the quarter ending March 31, 2001.

For the quarter, net loss attributable to common stockholders was $33.7 million, or $0.87 per share based on38.7 million shares.

‘Our top priority has been strengthening our revenue base while keeping a tight reign on costs,’ said Marc H.Bell, Chairman and CEO. ‘Our success is evident in the results for our second quarter, as revenues andcustomer count have increased despite turning off approximately 40 dot-com customers, and as our losseshave decreased year over year and sequentially from last quarter. With our new data centers in New York andLondon now being pre-sold, we remain optimistic about demand.’

‘Market turmoil and economic uncertainty have been major factors in our industry,’ said Brian Reach, SeniorVice-President and Chief Financial Officer. ‘We continue to be committed to reducing our operating costs andreaching profitability. Not only did we see smaller losses in the quarter, but our receivables also dropped to$20.4 million in the second quarter, down from $21.4 million at September 30, 2000, and down sequentiallyfrom $22.7 million in the fiscal first quarter. With more than 72% of our recurring revenue being generatedfrom enterprise customers, our revenue mix is one of the best in the industry. We will remain conservative inour guidance, given our current capacity constraints and our expectations for the continued replacement ofhigher-risk clients with more stable, creditworthy ones.’

Recent Events
  • Selected by Walmart.com for Internet services.
  • Launched Globix AutoEncode, which reduces cost and accelerates speed of encoding for streamingmedia.
  • Received commitments to date for approximately $47 million in financing arrangements from severalvendors.
  • Ended March 31, 2001, with 3,636 customers, versus 3,442 customers as of December 31, 2000.
  • CEO Marc H. Bell exercised options to purchase an additional 55,600 shares of common stock andalso purchased $10 million of the company¬ís 12.5% senior notes on the open market.

Business Outlook
The following business outlook contains forward-looking statements intended to provide the high- and low-endrange of management’s current expectations. These forward-looking statements are subject to numerousrisks and uncertainties. As a result, actual results may differ materially from what is expected.

  • Globix estimates revenue for the third quarter of fiscal 2001 to be in the range of $25 million to $26million.
  • EBITDA loss is expected to be approximately $16 to $17 million for the third quarter of fiscal 2001.
  • Net interest expense is estimated to be approximately $14 million for the third quarter of fiscal 2001.Net interest expense is dependent in part on the timing of capital expenditures, future borrowings,interest rates and cash balances.
  • Revenue for fiscal 2001 is expected to be approximately $100 million to $105 million.
  • EBITDA loss excluding certain extraordinary costs for fiscal year 2001 is expected to be between $57million and $60 million.
  • Capital expenditures, working capital and capital lease payments for fiscal year 2001 are estimatedto be $160 million.

About Globix

Globix is a leading provider of advanced Internet hosting, network and applications solutions for business. Globix delivers services via its secure state-of-the-art Internet DATA Centers, its high-performance global backbone and content delivery network, and its world-class technical professionals. Globix provides businesses with cutting-edge Internet resources and the ability to deploy, manage and scale mission-critical Internet operations for optimum performance and cost efficiency.


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