Globix Corporation Reports Third Fiscal Quarter 2003 ResultsNEW YORK – August 22, 2003New 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
|
|
Revenue
|
$ 14,519
|
$ 12,702
|
$ 6,505
|
|
Operating costs and expenses:
|
|
|
|
|
Cost of revenue (excluding depreciation, amortization,
payroll and occupancy included below)
|
4,601
|
4,505
|
2,723
|
|
Selling, general and administrative
|
9,253
|
10,749
|
11,057
|
|
Loss on impairment of assets
|
—
|
—
|
(643)
|
|
Restructuring and other expense
|
—
|
—
|
—
|
|
Depreciation and amortization
|
4,057
|
2,454
|
3,929
|
|
Total operating costs and expenses
|
17,911
|
17,708
|
17,066
|
|
|
|
|
|
|
Loss from operations
|
(3,392)
|
(5,006)
|
(10,561)
|
|
Other (expenses) income:
|
|
|
|
|
Interest and financing expense
|
(3,758)
|
(2,677)
|
(451)
|
|
Interest income
|
295
|
314
|
183
|
|
Gain on debt discharge
|
1,154
|
—
|
427,066
|
|
Minority interest in subsidiary
|
105
|
—
|
4,434
|
|
Reorganization Items
|
—
|
—
|
(2,164)
|
|
Fresh Start Accounting Adjustments
|
—
|
—
|
(148,569)
|
|
Other income/(expense)
|
220
|
(145)
|
(113)
|
|
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
|
16,460,000
|
16,460,000
|
41,395,781
|
|
Diluted net (loss) income per share attributable to common
stockholders
|
$ (0.33)
|
$ (0.46)
|
$ 5.37
|
|
Weighted average common shares outstanding – diluted
|
16,460,000
|
16,460,000
|
50,284,381
|
About Globix:
Globix (http://www.globix.com) 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
212-625-7546
mvandijken@globix,com
Press Room |
