Globix Reports Fiscal Third Quarter Results
NEW YORK – July 24, 2001
NEW YORK – July 24, 2001 – Globix Corporation (Nasdaq: GBIX) today announced financial results for its fiscal third quarter 2001, which ended June 30, 2001.
For the quarter, Globix posted revenue of $26.2 million, a 23% increase over revenue of $21.4 million in the third quarter of fiscal 2000.
EBITDA loss (loss before net interest expense, income taxes, depreciation and amortization) was $15.5 million for the quarter, compared to $15.1 million for the same quarter last year.
Net interest expense was $11.5 million for the quarter ending June 30, 2001.
For the quarter, net loss attributable to common stockholders was $37.8 million, or $0.97 per share based on 38.9 million common shares.
‘With the opening of our new data centers in New York and London, we now have the much-needed capacity to attract companies looking to outsource their Internet solutions,’ said Marc H. Bell, Chairman. ‘With $25 million in new contracts in hand, we are proving that large corporate clients such as Clear Channel Interactive are confident in our ability to provide a cost-effective managed solution, as well as in our long-term viability as a leader in the hosting sector.’
‘We continue to control costs and effectively manage working capital, particularly accounts receivable, during these turbulent market conditions,’ said Brian Reach, Senior Vice-President and Chief Financial Officer. ‘Receivables dropped to $19.2 million in the third quarter, down from $20.4 million in the fiscal second quarter, while days sales outstanding continued to improve, coming in at 67 days versus 68 days last quarter. Approximately 75% of our recurring revenue came from enterprise customers as we continued to improve our client credit quality. Until market conditions show marked signs of improvement, we will remain cautious in our forward guidance.’
Mr. Bell continued, ‘In order to allow me more time to focus on our financing opportunities, Peter Herzig has been appointed Chief Executive Officer and Marc Jaffe Chief Operating Officer. I will be maintaining my position as Chairman of the Board and look forward to working with Peter and Marc in their new roles. We are confident, based on their backgrounds, that Peter and Marc will be able to carry us toward profitability.’
Selected by Clear Channel Interactive for the hosting of its next-generation radio station Web sites. Signed $25 million in new contracts. Opened new Internet data centers in New York and London. 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 fourth quarter fiscal 2001 to be in the range of $26 million to $28 million. EBITDA loss is expected to be approximately $15 million to $16 million for fourth quarter fiscal 2001. Net interest expense is estimated to be approximately $19 million for fourth quarter fiscal 2001. Net interest expense is dependent in part on the timing of capital expenditures, future borrowings, interest rates and cash balances. View Earnings Table
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.