Globix Reports Fourth-Quarter and Annual 2000 Results
NEW YORK – November 16, 2000
NEW YORK – Nov. 16, 2000 – Globix Corporation (NASDAQ: GBIX) today announced record financial results for its fiscal year and fourthquarter, ended Sept. 30, 2000.
Annual revenue increased 140 percent to a record $81.3 million. Internet revenue reached a record $53.1 million, a 307 percent increase from the prior year.
For the quarter, Globix posted record Internet revenue of $20.4 million, a 32 percent increase from third quarter 2000 and a 336 percent increase over revenue of $4.7 million in the fourth quarter 1999. Revenue totaled $25.9 million, an increase of 126 percent compared to $11.4 million for the quarter ended Sept. 30, 1999. Revenue from Server Sales and Integration was $5.5 million for the quarter, versus $6.8 million for the prior year’s quarter.
Globix Streaming Media contributed a record $1.3 million to the Internet segment in the fourth quarter, a 51 percent increase over third quarter 2000.
EBITDA loss (loss before net interest expense, income taxes, depreciation and amortization) was $15.3 million for the quarter, compared to $10.8 million for the same quarter last year. New York and London SuperPOPs reached EBITDA breakeven in the quarter, ahead of plan.
Net loss attributable to common stockholders for the fourth quarter was $30.1 million, or $0.81 loss per share based on 37.1 million shares.This compares to a net loss attributable to common shareholders of $31.9 million, or $0.91 per share based on 34.9 million shares, in the third quarter of 2000, and $17.1 million, or $0.52 loss per share based on 33.2 million shares, for the fourth quarter 1999.
‘Currently enterprise customers represent more than 65 percent of our monthly recurring revenue as we continue to see growth being driven largely by these traditional companies,’ said Marc H. Bell, chairman and CEO. ‘Strong growth from our existing customer base has pushed our average annualized revenue from our top 100 customers to more than $385,000, up from more than $329,000 in the third quarter.’
‘Customer churn remained low for the quarter at less than 1 percent of annualized recurring revenue,’ said Brian Reach, CFO. ‘Additionally, in the fourth quarter we increased our customer count to 2,640 from 2,337 in the previous quarter (excluding customers from the Comstar acquisition).
Significant Events During Fourth Quarter 2000:SuperPOP Expansion: Began construction on second facilities in London and New York. Streaming Media: Fulfilled more than 38 million stream requests and encoded more than 200,000 minutes. Peering: Recorded approximately 1,100 peering-connection agreements with some 425 companies, as of Sept. 30, 2000. Staffing: Increased head count to approximately 850 employees, up from some 640 in the prior quarter. Acquisitions: Acquired Comstar.net, an Atlanta-based Internet managed-solutions company, at the end of August 2000. Recent New Product Announcements: EarthCache Content Delivery Network: Announced the new content distribution architecture. GlobixMail: Launched the new application service that enables businesses to outsource the daily management of their in-house e-mail systems to Globix. Business Outlook:
The following business outlook contains forward-looking statements intended to provide the high- and low-end range of management’s current expectations. These forward-looking statements are subject to numerous risks and uncertainties. As a result, actual results may differ materially from what is expected.
Globix estimates total revenue for the first quarter 2001 to be in the range of $24 million to $25 million. EBITDA loss is expected to be approximately $16 million for the first quarter 2001. Net interest expense is estimated to be approximately $15 million for the first quarter 2001. Net interest expense is dependent in part on the timing of capital expenditures, future borrowings, interest rates and cash balances. Globix Anticipates It Will Achieve Significant Growth For The Full Fiscal Year 2001, As Follows: Total revenue for fiscal year 2001 is expected to be approximately $130 million to $140 million. EBITDA losses for fiscal year 2001 are expected to be between $85 million and $90 million. Capital expenditures, working capital and capital lease payments are estimated to be $160 million.
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.