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GLOBIX CORPORATION POSTS RECORD RESULTS
Company’s FY2000 2nd Quarter Internet Revenue Increase 48% Sequentially To Record $10.3 Million
Internet Revenue Now Exceeding Server and Integration Sales
Total Revenue Reaches Record $17.9 Million
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 Corporation is a leading full service provider of sophisticated Internet
solutions, including 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. Globix’s
solutions include Co-Location, Hosting and Dedicated Access. The Globix Applications
Services Group offers services such as Streaming Media, Electronic Commerce, Solutions
Architecture and Internet Security.
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.
View Earnings Table
VP, Corporate Finance
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