Globix Reports 172% Revenue Growth for Quarter
NEW YORK – January 27, 2000
For the quarter, Globix posted record revenues totaling $16.15 million, an increase of 172% when compared with $5.93 million for the quarter ended December 31, 1998. Revenues from the Internet Division increased 205% to $6.96 million for the quarter, up from $2.28 million for the same quarter last year. Revenues from the Server Sales and Integration Division increased 152% to $9.19 million for the quarter, up from $3.65 million for the same quarter last year.
‘The main drivers behind the quarter’s revenue growth were the expansion by over 30 times of our available data center space, an increased marketing effort and our addition of new sales and technical staff,’ said Marc H. Bell, Chairman and CEO of Globix Corporation. ‘Our Internet revenues grew sequentially 49% over the fourth quarter 1999, which is a testament to the quality of our facilities, network and services as well as the expertise and professional attitude of our employees.’
Internet Division revenues, as a percentage of total revenues, increased to 43% for the quarter, from 38% for the same quarter last year. Application services revenues were led by the Globix Streaming Media Group whose revenues increased 28% sequentially. Some streaming events produced and delivered by Globix were: VH-1 Fashion Music Awards, Paul McCartney live from Liverpool England and Boxing.com’s cybercast of the Holyfield/Lewis Championship fight.
EBITDA loss (loss before net interest expense, income taxes, depreciation, amortization and other non-cash charges) was $13.6 million for the quarter, compared to $3.3 million for the same quarter last year. The net loss for the quarter was $20.8 million and $21.3 million loss available to common stockholders or $1.27 loss per share as compared to a net loss of $7.8 million or $0.94 loss per share for the same quarter last year. The increase in EBITDA loss was primarily attributable to an increase in selling, general and administrative (SG&A;) expenses associated with the Company’s expansion and marketing efforts. Included in SG&A; expenses were marketing costs of $3.33 million for the quarter, as compared to $1.13 for the same quarter last year, which were related to the Company’s new national media ad campaign. Globix has increased the number of employees from 216 on December 31, 1998 to 511 on December 31, 1999. In addition, the increase in net loss in the quarter is attributable to the increase in depreciation resulting from the buildout of our network and facilities.
Significant events during Q1 2000: Completed an $80.0 million convertible preferred stock private placement to the investment firm of Hicks, Muse, Tate & Furst; Completed a 2-1 stock split in December; Surpassed 500 public and private peering connections; Launched the Globix Streaming Media network capable of serving over 125,000 simultaneous streams; fulfilled over 14 million requests for Streaming Media customers; and Joined the Microsoft Windows Media Broadband Jumpstart Initiative.
Globix Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) 3 Months Ended 12/31/99 12/31/98Revenues:Internet $6,956 $2,281Server sales and integration 9,189 3,648Total revenues 16,145 5,929Cost of revenues:Internet 2,539 565Server sales and integration 7,517 3,137Total cost of revenues 10,056 3,702Gross profit 6,089 2,227Selling, general and administrative 19,695 5,566EBITDA (13,606) (3,339)Depreciation and amortization 3,357 507Loss from operations (16,963) (3,846)Interest and financing expense, net (3,848) (3,973)Net loss $(20,811) $(7,819)Dividends and accretion on preferred stock 531 –Loss available to common stockholders $(21,342) $(7,819)Basic and diluted net loss per share $(1.27) $(0.94)Weighted average common shares outstanding 16,779 8,280
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.