Press Releases

Globix Corporation Reports Third Fiscal Quarter 2003 Results

NEW YORK – August 22, 2003

New York – August 22, 2003 – Globix Corporation (OTC: GBXX) today reported financial results for its third quarter of fiscal year 2003, which ended June 30, 2003, citing continued progress in its post-restructuring period. The company also announced that it had repurchased an additional $2.7 million of its outstanding 11% Senior Notes during the quarter.


Revenues for the quarter were $14.5 million, which was $4.7 million, or 24% less than the same period in 2002. The company also reported that in the third fiscal quarter of 2003 cost of revenues was reduced 36% to $4.6 million from the same period in 2002, and that sales, general and administrative costs were reduced 58% to $9.3 million compare to the same period in 2002 primarily reflecting the continuing impact of the company’s restructuring and cost management efforts.


Loss from operations was $3.4 million for the third fiscal quarter of 2003, compared to a loss of $15.6 million for the same period a year earlier. Net loss attributable to common shareholders for the quarter was $5.4 million, or $.33 per share, based on 16,460,000 common shares outstanding at the end of the quarter.


Globix Corporation & Subsidiaries

Un-audited Condensed Results of Operations

(Dollars in Thousands Except Per Share Data)


Three Months Ended June 30,


Successor Company

Predecessor Company


Three Months Ended June 30, 2003

Two Months Ended June 30, 2002

One Month Ended April 30, 2002


$ 14,519

$ 12,702

$ 6,505

Operating costs and expenses:




Cost of revenue (excluding depreciation, amortization, payroll and occupancy included below)




Selling, general and administrative




Loss on impairment of assets


Restructuring and other expense

Depreciation and amortization




Total operating costs and expenses








Loss from operations




Other (expenses) income:




Interest and financing expense




Interest income




Gain on debt discharge



Minority interest in subsidiary



Reorganization Items


Fresh Start Accounting Adjustments


Other income/(expense)




Net (loss) income

$ (5,376)

$ (7,514)

$ 269,825

Dividends and accretion on preferred stock

Net loss attributable to common stockholders

$ (5,376)

$ (7,514)

$ 269,825

Basic net (loss) income per share attributable to common stockholders

$ (0.33)

$ (0.46)

$ 6.52

Weighted average common shares outstanding—basic and diluted




Diluted net (loss) income per share attributable to common stockholders

$ (0.33)

$ (0.46)

$ 5.37

Weighted average common shares outstanding – diluted




About Globix:
Globix ( is a leading provider of managed Internet 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:


Michael van Dijken




Public Relations
139 Centre Street
New York, NY 10013
Phone: 212-625-7546
Fax: 212-334-8650
[email protected]