Globix Posts Record Year-End Revenues
NEW YORK – December 21, 1998
Globix Corporation (Nasdaq: GBIX) today announced results for the year ended September 30, 1998.
For the year ended September 30, 1998, revenues increased 18% to a record $20,594,900 compared with $17,399,950 for the year ended September 30, 1997. Additionally, gross profit margins increased from approximately 20% for the year ended September 30, 1997 to approximately 35% for the year ended September 30, 1998. The revenue and gross profit margin increases were primarily attributable to an increase in sales of the Internet division to $6,447,500 from $2,413,500, an increase of 167%. Gross profit margins for the Internet division increased from approximately 54% for the year ended September 30, 1997 to approximately 76% for the year ended September 30, 1998.
The net loss for the year ended September 30, 1998 was $11,155,900 or $3.08 per share, as compared to a loss of $3,115,400 or $1.01 per share for the year ended September 30, 1997. Earnings before Interest, Taxes, Depreciation and Amortization (‘EBITDA’) for the year ended September 30, 1998 was a loss of $3,470,400 as compared to a loss of $2,537,900 for the year ended September 30, 1997. The increase in loss was primarily attributable to an increase in net interest expense of approximately $6 million related to the Company’s $160 million Senior Notes offering, increased depreciation expense of approximately $1.3 million, and an increase in Selling, General and Administrative expenses related to Globix’s expansion plans, including an increase in the number of employees from 70 to approximately 170 during the period.
The Company will host a conference call to discuss financial results on Tuesday, December 22nd at 9:00 A.M. Eastern Standard Time. In the United States, the number is 800-788-9726. The password is 7577. The conference call will be rebroadcast at 3:00 P.M. Eastern Standard Time at the same phone numbers.
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.