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REPORTS FIRST QUARTER 1999 RESULTS
Internet Division Records 71.8% Revenue Increase
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.
Globix Corporation is a leading provider of Internet connectivity
and sophisticated Internet-based solutions to large and medium size
businesses. Globix provides businesses with a comprehensive
range of value-added products and services designed to enable them
to take advantage of their corporate networks and the Internet to
effectively carry out their business strategy.
This press release may contain 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.
Marc H. Bell, President & Chief Executive Officer
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