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GLOBIX POSTS RECORD THIRD QUARTER REVENUE

Internet Segment Records 107% Revenue Increase

New York – July 19, 1999 Globix Corporation (NASDAQ: GBIX) today announced results for the fiscal third quarter ended June 30, 1999. For the third quarter ended June 30, 1999, revenues increased 65% to a record $9.4 million compared with $5.7 million for the quarter ended June 30, 1998. Revenues for the nine months ended June 30, 1999 increased 51% to $22.4 million up from $14.8 million for the nine months ended June 30, 1998.

Revenues from the Internet Segment increased 107% to $3.4 million for the three months ended June 30, 1999 from $1.6 million for the three months ended June 30, 1998. For the nine months ended June 30, 1999 Internet Segment revenues increased 90% to $8.4 million, an increase of $3.9 million when compared to the comparable period ending June 30, 1998. Revenues from the Server Sales and Integration Segment for the three months ended June 30, 1999 increased 48% to $6.0 million from $4.1 million for the three months ended June 30, 1998. Revenues from that Segment for the nine months ended June 30, 1999 increased 35% to $14.0 million up from $10.4 million for the prior nine-month period ended June 30, 1998.

The net loss for the quarter ended June 30, 1999 was $8.8 million or $1.06 per share, as compared to a loss of $4.1 million or $1.16 per share for the quarter ended June 30, 1998. The increase in loss was primarily attributable to an increase in Selling, General and Administrative expenses associated with the Company’s expansion plans. These expenses included an increase in aggregate salaries from $2.0 million for the three months ended June 30, 1998 to $5.0 million for the three months ended June 30, 1999. This increase was due to the number of full time employees increasing from over 120 to over 340 during the period, necessitated by the completion of the Company’s new SuperPOP Internet Data Centers in New York, Santa Clara, CA and London. EBITDA loss (loss before interest, taxes, depreciation, amortization and other non-cash charges) was $5.7 million for the 3rd quarter of 1999, compared to $1.1 million for the 3rd quarter of 1998.

“This has been a historic quarter for Globix,” said Marc H. Bell, Globix Chairman and CEO. “In addition to hitting record quarterly revenues for the fifth straight quarter, this is the seventh consecutive quarter of sequential revenue growth from our Internet segment. Our new facilities, network and staff make Globix well positioned to capitalize on the growing trend of corporations outsourcing their Internet and advanced technological services.”

About Globix
Globix Corporation is a leading provider of Internet connectivity and advanced Internet services for businesses in the United States and Europe. Through its high-speed, fault-tolerant, fiber-optic network and state-of-the-art Internet Data Centers in New York City, Santa Clara, CA and London, UK, Globix delivers superior reliability, security and performance to companies using the Internet to deploy mission-critical business strategies. Cutting-edge applications include Dedicated Access, Co-location, Web Hosting, Streaming Media, E-Commerce and Corporate Training.

Management’s conference call to discuss the financial results can be heard today July 19, 1999 at 5:00 p.m. eastern standard time live on the Globix Web site at www.globix.com or at www.vcall.com, a replay of the call will be available on both sites shortly after the completion.

This press release contains forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained under the heading of Risk Factors listed from time to time in the Company’s filings with the Securities and Exchange Commission.

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Globix Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited)

(In thousands, except per share data)

Three Months Ended June 30,

	1999		1998
Revenues:
Internet	$ 3,374		$ 1,633
Server sales and Integration	6,007		4,063
Total Revenues	9,381		5,696
Cost of revenues:
Internet	1,377		330
Server sales and Integration	5,055		3,470
Total Cost of Revenues	6,432		3,800
Gross Profit	2,949		1,896
Selling, general and administrative	8,667		3,010
Depreciation and amortization	1,474		396
Total operating expenses	10,141		3,406
Loss from operations	(7,192)		(1,510)
Interest and financing income (expense), net	(1,617)		(2,560)
Net loss	$ (8,809)		$ (4,070)
Basic and diluted net loss per share	$ (1.06)		$ (1.16)
Weighted average common shares outstanding	8,278		3,510

 

Globix Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited)

(In thousands, except per share data)

Nine Months Ended June 30,

 

	1999	1998
Revenues:
Internet	$ 8,362	$ 4,416
Server sales and Integration	14,034	10,371
Total Revenues	22,396	14,787
Cost of revenues
Internet	2,771	1,073
Server sales and Integration	11,839	8,585
Total Cost of Revenues	14,610	9,658
Gross Profit	7,786	5,129
Selling, general and administrative	21,894	6,489
Depreciation and amortization	2,687	902
Total operating expenses	24,581	7,391
Loss from operations	(16,795)	(2,262)
Interest and financing income (expense), net	(9,483)	(2,679)
Net loss	$ (26,278)	$ (4,941)
Basic and diluted net loss per share	$ (4.69)	$ (1.42)
Weighted average common shares outstanding	5,597	3,469

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Contacts:
Charles Strauzer – Manager, Investor Relations
Globix Corporation
212-625-7327
[email protected]

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