Globix Corporation Posts Record Results
NEW YORK – April 27, 2000
Globix Corporation (NASDAQ: GBIX)today announced financial results for its fiscal 2000 second quarter ended March 31, 2000.
For the quarter, Globix posted record revenues totaling $17.9 million, an increase of 153% when compared with $7.1 million for the quarter ended March 31, 1999. Record revenue from the Internet Division increased 280% to $10.3 million for the quarter, up from $2.7 million in last year’s second quarter. Revenues from the Server Sales and Integration Division climbed 74% to $7.6 million for the quarter, up from $4.4 million over the year-ago quarter.
Application services were also strong led by the Globix Streaming Media Group where revenues increased to over $675,000 in the quarter which was an increase of over 35% sequentially from last quarter.
EBITDA loss (loss before net interest expense, income taxes, depreciation and amortization) was $15.4 million for the quarter, compared to $5.1 million for the same quarter last year.
Net loss before extraordinary item was $29.6 million in the second quarter 2000 or $0.85 loss per share, excluding the extraordinary loss of $17.6 million or $0.51 per share impact from the early extinguishment of debt related to the tender of the company’s 13% Senior Notes, and net loss attributable to common stockholders was $48.9 million or $1.41 loss per share as compared to a net loss of $9.6 million or $0.55 loss per share for the same quarter last year.
‘This quarter’s results underscore the tremendous strength of the Globix one-stop model, and demonstrate that we are on a clear path to continued strong growth,’ said Marc H. Bell, Chairman and CEO. ‘Not only is this the first quarter in our history that our core Internet revenue are now greater than our Server sales but it is an exact inverse of the previous quarter’s relationship when Internet revenue was only 43% of our total sales.’
‘Additionally, Globix added over 5 new customers a day or 470 customers in the quarter to bring our customer count to 2,020,’ said Bell. ‘The average annualized revenue of our top 100 customers jumped to over $239,000 in the quarter compared to $140,000 in the prior quarter, a 71% increase.’
‘Not only did our Internet revenue increase 48% sequentially from the prior quarter but is also was a tremendous quarter from a new bookings standpoint,’ said Brian Reach, Chief Financial Officer. ‘During the second quarter, Globix booked more than $21 million of new annualized recurring revenue a 70% increase from the prior quarter.’
‘We are well capitalized as we embark on phase II of our expansion,’ said Reach. ‘Globix now has almost $600 million in cash to fund the buildout of eight new data centers and network enhancements.’
Significant events during Q2 2000: Capital raising efforts: Completed an $600 million 12.5% Senior Notes offering. Expansion: Increased network capacity by purchasing a 2.5 Gbps optical wavelength domestically and multiple STM-1 transatlantic circuits. Streaming Media: Fulfilled almost 20 million stream requests and transferred more than 9 Terabytes of data, produced over 80 live event days and encoded over 150,000 minutes of static media. Corporate: Completed a 2-1 stock split in January. Peering: Globix now has over 325 companies peering with over 800 connections. Headcount: Increased our head count to over 590 employees up from over 520 in the prior quarter.
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.