Globix Announces Second Quarter Results
NEW YORK – April 22, 1999
New York, New York – April 22, 1999 – Globix Corporation (NASDAQ: GBIX), today announced results for the second fiscal quarter ended March 31, 1999. For the second quarter ended March 31, 1999, revenues increased 62.8% to a record $7.09 million compared with $4.35 million for the quarter ended March 31, 1998. Revenues for the six months ended March 31, 1999 increased 43.1% to $13.02 million up from $9.09 million for the six months ended March 31, 1998.
Revenues from the Server Sales and Integration Division for the three months ended March 31, 1999 increased 50.3% to $4.38 million from $2.91 million for the three months ended March 31, 1998. Revenues from that division for the six months ended March 31, 1999 increased 26.9% to $8.03 million up from $6.32 million for the prior six-month period ended March 31, 1998. Revenues from the Internet Division increased 88.2% to $2.71 million for the three months ended March 31, 1999 from $1.44 million for the three months ended March 31, 1998. For the six months ended March 31, 1999 Internet Division revenues increased 80.1% to $4.99 million an increase from $2.77 million when compared to the comparable period ending March 31, 1998. The revenue increase in the Internet Division was primarily attributable to an increase in the number of customers to which the Company provided Internet connectivity and services.
The net loss for the quarter ended March 31, 1999 was $9.65 million or $2.20 per share as compared to a loss of $588,000 or $0.17 per share for the quarter ended March 31, 1998. The increase in loss was primarily attributable to an increase in net interest expense of approximately $3.83 million, related to the Company’s $160Ýmillion 13% Senior Notes, and an increase in Selling, General and Administrative (SG&A;) expenses associated with the Globix expansion plans. These SG&A; expenses included an increase in salaries from $1.11 million for the three months ended March 31, 1998 to $4.60 million for the three months ended March 31, 1999. This salary increase was due an increase in the number of employees from 82 to 282 during the period necessitated by the impending completion of the Company’s new SuperPOP Internet Data Centers in New York; Santa Clara, CA and London, England.
‘We are extremely pleased that our revenue growth remains strong as we report our fourth consecutive record quarter. We have seen a growing trend of businesses outsourcing their Internet needs,’ said Marc H. Bell, Globix President and CEO. ‘For the second quarter of 1999, we added over 360 new Internet customer agreements, bringing the total Internet customer count to over 1100.’
‘To meet the increasingly complex Internet needs of our customers, Globix, is on track to open our three new SuperPOP’s in the fiscal third quarter. These new sites will increase our fully redundant and secure data center capacity over 30 times, to approximately 63,000 square feet,’ said Marc Jaffe, Globix Senior Vice President, Operations.
Globix Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited – In thousands, except per share data)
Three Months Ended March 31,
Server sales and Integration4,375
2,911 Total Revenues 7,086
Cost of revenues:
Server sales and Integration 3,673
2,343 Total Cost of Revenues 4,476
Selling, general and administrative 7,661
Depreciation and amortization 706
264 Total operating expenses 8,367
Loss from operations (5,757)
Interest and financing income (expense), net (3,893)
Net loss $ (9,650)
Basic and diluted net loss per share $ (2.20)
Weighted average common shares outstanding 4,376
EBITDA (a) (5,051)
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.