Globix Reports First Quarter 1999 ResultsNEW YORK – February 12, 1999
New York, New York, February 12, 1999 Globix Corporation (Nasdaq: GBIX) ) today announced results for the first quarter ended December 31, 1998.
For the first quarter ended December 31, 1998, revenues increased 25.1% to $5.93 million compared with $4.74 million for the quarter ended December 31, 1997. Revenues from the Internet Division increased 71.8% to $2.28 million for the three months ended December 31, 1998, from $1.33 million for the three months ended December 31, 1997. Revenues from the Server Sales and Integration Division for the three months ended December 31, 1998, increased 6.9% to $3.65 million from $3.41 million for the three months ended December 31, 1997. 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. Internet Division revenues, as a percentage of total revenues, increased to 38.5% for the three months ended December 31, 1998 from 28% for the three months ended December 31, 1997. This increase reflected the Company’s shift in product mix toward Internet-related sales.
The net loss for the quarter ended December 31, 1998 was $7.82 million or $1.89 per share as compared to a loss of $282,000 or $0.08 per share for the quarter ended December 31, 1997. The increase in loss was primarily attributable to an increase in net interest expense of $3.97 million related to the Company’s $160 million Senior Notes offering, and an increase in Selling, General and Administrative (SG&A;) expenses associated with the Company’s expansion of its Internet Business. These SG&A; expenses included advertising expenses of $1.13 million for the three months ended December 31, 1998 as compared to $132,000 for the three months ended December 31, 1997. In addition, the number of employees increased from 84 on December 31, 1997 to 211 on December 31, 1998.
About GlobixGlobix 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.
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