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GLOBIX
ANNOUNCES SECOND QUARTER RESULTS
Posts Record Second Quarter Revenue
– Internet Division Records 88.2% Revenue Increase
New York, New York — April 22,
1999 – Globix Corporation (NASDAQ: GBIX), today announced
results for the second fiscal quarter ended March 31, 1999. For the
second quarter ended March 31, 1999, revenues increased 62.8% to a
record $7.09 million compared with $4.35 million for the quarter ended
March 31, 1998. Revenues for the six months ended March 31, 1999 increased
43.1% to $13.02 million up from $9.09 million for the six months ended
March 31, 1998.
Revenues from the Server Sales and Integration
Division for the three months ended March 31, 1999 increased 50.3%
to $4.38 million from $2.91 million for the three months ended March
31, 1998. Revenues from that division for the six months ended March
31, 1999 increased 26.9% to $8.03 million up from $6.32 million for
the prior six-month period ended March 31, 1998. Revenues from the
Internet Division increased 88.2% to $2.71 million for the three months
ended March 31, 1999 from $1.44 million for the three months ended
March 31, 1998. For the six months ended March 31, 1999 Internet Division
revenues increased 80.1% to $4.99 million an increase from $2.77 million
when compared to the comparable period ending March 31, 1998. The
revenue increase in the Internet Division was primarily attributable
to an increase in the number of customers to which the Company provided
Internet connectivity and services.
The net loss for the quarter ended March
31, 1999 was $9.65 million or $2.20 per share as compared to a loss
of $588,000 or $0.17 per share for the quarter ended March 31, 1998.
The increase in loss was primarily attributable to an increase in
net interest expense of approximately $3.83 million, related to the
Company’s $160Ýmillion 13% Senior Notes, and an increase in Selling,
General and Administrative (SG&A;) expenses associated with the Globix
expansion plans. These SG&A; expenses included an increase in salaries
from $1.11 million for the three months ended March 31, 1998 to $4.60
million for the three months ended March 31, 1999. This salary increase
was due an increase in the number of employees from 82 to 282 during
the period necessitated by the impending completion of the Company’s
new SuperPOP Internet Data Centers in New York; Santa Clara, CA and
London, England.
“We are extremely pleased that our revenue
growth remains strong as we report our fourth consecutive record quarter.
We have seen a growing trend of businesses outsourcing their Internet
needs,” said Marc H. Bell, Globix President and CEO.
“For the second quarter of 1999, we added over 360 new Internet customer
agreements, bringing the total Internet customer count to over 1100.”
“To meet the increasingly complex Internet
needs of our customers, Globix, is on track to
open our three new SuperPOP’s in the fiscal third quarter. These new
sites will increase our fully redundant and secure data center capacity
over 30 times, to approximately 63,000 square feet,” said Marc Jaffe,
Globix Senior Vice President, Operations.
About
Globix
Globix Corporation is a leading provider of Internet connectivity
and sophisticated Internet-based solutions to large and medium size
businesses. Globix provides businesses with a comprehensive
range of value-added products and services designed to enable them
to take advantage of their corporate networks and the Internet to
effectively carry out their business strategy.
This press release may contain forward-looking
statements. Actual results could differ materially from those projected
in the forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from
those in the forward-looking statements is contained under the heading
of Risk Factors listed from time to time in the Company’s filings
with the Securities and Exchange Commission.
Globix Corporation and Subsidiaries Consolidated
Statements of Operations (Unaudited – In thousands, except per share
data)
Three Months Ended March 31,
|
|
1999
|
|
1998
|
|
Revenues:
|
|
|
|
|
Internet
|
$ 2,711
|
|
$ 1,441
|
|
Server sales and Integration
|
4,375
|
|
2,911
|
|
Total Revenues
|
7,086
|
|
4,352
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
Internet
|
803
|
|
401
|
|
Server sales and Integration
|
3,673
|
|
2,343
|
|
Total Cost of Revenues
|
4,476
|
|
2,744
|
|
|
|
|
|
|
Gross Profit
|
2,610
|
|
1,608
|
|
|
|
|
|
|
Selling, general and administrative
|
7,661
|
|
1,870
|
|
Depreciation and amortization
|
706
|
|
264
|
|
Total operating expenses
|
8,367
|
|
2,134
|
|
|
|
|
|
|
Loss from operations
|
(5,757)
|
|
(526)
|
|
|
|
|
|
|
Interest and financing income (expense), net
|
(3,893)
|
|
(62)
|
|
|
|
|
|
|
Net loss
|
$ (9,650)
|
|
$ (588)
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
$ (2.20)
|
|
$ (0.17)
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
4,376
|
|
3,448
|
|
|
|
|
|
|
EBITDA (a)
|
(5,051)
|
|
(297)
|
Contact:
Charles Strauzer – Manager, Investor Relations
Globix Corporation
212-625-7327
[email protected]
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