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Globix Reports First Fiscal Quarter 2003 ResultsNEW YORK – March 28, 2003
Globix Corporation (OTC: GBXX) today
reported financial results for its first quarter of fiscal year 2003, which
ended December 31, 2002, as well as financial results for its fiscal year 2002
which ended September 30, 2002. Globix also announced that it had purchased
approximately 13% of its Senior Notes through February 2003.
Revenues for the first fiscal quarter of 2003 were $16.5 million, which was
$6.9 million, or 30% less than the same period in 2002. The company also reported
that cost of revenues in the first fiscal quarter of 2003, however, was reduced
42% to $5.6 million from the same period in 2002, and that sales, general &
administrative costs in the first fiscal quarter of 2003 were reduced 52% to
$11.9 million relative to the same period a year earlier, reflecting the impact
of the company’s Chapter 11 restructuring and cash management efforts.
Globix and two of its wholly owned subsidiaries filed for Chapter 11 bankruptcy
protection in March 2002, and emerged from bankruptcy on April 25, 2002.
Loss from operations was approximately $4.8 million for the first fiscal quarter
of 2003, compared to $23 million for the same period a year earlier. For the
fiscal quarter, net loss attributable to common shareholders was $5.3 million,
or $.32 per share based on 16,460,000 common shares outstanding at the end of
the quarter. For the same period a year earlier, the net loss attributable to
common shareholders was $43.5 million or $1.11 per share based on 38,979,005
common shares then outstanding.
Globix Corporation & Subsidiaries
Un-audited Condensed Results of Operations
(Dollars in Thousands, Except Per Share Data)
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Quarter Ended
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Successor – December 31, 2002
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Predecessor – December 31, 2001
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Revenue
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$16,480
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$23,379
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Cost of Revenue
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$5,624
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$9,663
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Selling, General and Administrative
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$11,891
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$24,748
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Depreciation & Amortization
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$3,727
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$12,012
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Loss from Operations
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$(4,762)
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$(23,044)
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Interest & Financing
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$(3,904)
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$(20,024)
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Interest Income
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$388
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$966
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Other Income (expense)
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$182
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$110
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Gain on Debt Discharge
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$2,727
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–
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Minority Interest on Subsidiary
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$108
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$389
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Net Loss
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$(5,261)
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$(41,603)
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Dividends & Accretion on Preferred Stock
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–
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$(1,848)
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Net Loss Attributable to Common Shareholders
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$(5,261)
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$(43,451)
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Basic & Diluted Loss Per Share Attributable
to Common Shareholders
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$(0.32)
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$(1.11)
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Weighted Average Common Shares Outstanding – Basic
and Diluted
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16,460,000
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38,979,005
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About Globix:
Globix (http://www.globix.com) is a leading provider of managed infrastructure
services for business customers. Globix delivers applications and services via
its secure Data Centers, high-performance global Tier 1 IP backbone, content
delivery network, and its technical professionals. Globix provides businesses
with technology resources and the ability to deploy, manage and scale mission-critical
Internet-based operations for optimum performance and cost efficiency.
Risk Factors and Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. These statements are based
on current information and expectations and are subject to risks and uncertainties
that could cause the company’s actual results to differ materially from
those expressed or implied in the forward-looking statements. These risks and
uncertainties include: the company’s ability to retain existing customers
and attract new customers; its ability to match its operating cost structure
with revenue to achieve positive cash flow; the sufficiency of existing cash
and cash flow to complete the company’s business plan and fund its working
capital requirements; the insolvency of vendors and other parties critical to
the company’s business; the company’s existing debt obligations
and history of operating losses; its ability to integrate, operate and upgrade
or downgrade its network; the company’s ability to recruit and retain
qualified personnel needed to staff its operations; potential market or technological
changes that could render the company’s products or services obsolete;
changes in the regulatory environment; and other changes that are discussed
in the company’s Annual Report on Form 10-K and other documents that the
company files with the Securities and Exchange Commission.
Press Contact:
Mitchell Moore
212-625-7878
802-598-6856
[email protected]
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Info
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Public Relations
139 Centre Street
New York, NY 10013
Phone: 212-625-7546
Fax: 212-334-8650
[email protected]
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