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GLOBIX REPORTS 172% REVENUE GROWTH FOR QUARTER
49% Sequential Growth in Internet Segment Revenue
NEW YORK — January 27, 2000 — Globix Corporation (NASDAQ:
GBIX) today announced financial results for its fiscal 2000 first
quarter ended December 31, 1999.
For the quarter, Globix posted record revenues totaling $16.15 million, an increase of
172% when compared with $5.93 million for the quarter ended December 31, 1998. Revenues
from the Internet Division increased 205% to $6.96 million for the quarter, up from $2.28
million for the same quarter last year. Revenues from the Server Sales and Integration
Division increased 152% to $9.19 million for the quarter, up from $3.65 million for the
same quarter last year.
“The main drivers behind the quarter’s revenue growth were the expansion by over 30 times
of our available data center space, an increased marketing effort and our addition of new
sales and technical staff,” said Marc H. Bell, Chairman and CEO of Globix Corporation.
“Our Internet revenues grew sequentially 49% over the fourth quarter 1999, which is a
testament to the quality of our facilities, network and services as well as the expertise
and professional attitude of our employees.”
Internet Division revenues, as a percentage of total revenues, increased to 43% for the
quarter, from 38% for the same quarter last year. Application services revenues were led
by the Globix Streaming Media Group whose revenues increased 28% sequentially. Some
streaming events produced and delivered by Globix were: VH-1 Fashion Music Awards, Paul
McCartney live from Liverpool England and Boxing.com’s cybercast of the Holyfield/Lewis
Championship fight.
EBITDA loss (loss before net interest expense, income taxes, depreciation, amortization
and other non-cash charges) was $13.6 million for the quarter, compared to $3.3 million
for the same quarter last year. The net loss for the quarter was $20.8 million and $21.3
million loss available to common stockholders or $1.27 loss per share as compared to a
net loss of $7.8 million or $0.94 loss per share for the same quarter last year. The
increase in EBITDA loss was primarily attributable to an increase in selling, general
and administrative (SG&A;) expenses associated with the Company’s expansion and marketing
efforts. Included in SG&A; expenses were marketing costs of $3.33 million for the quarter,
as compared to $1.13 for the same quarter last year, which were related to the Company’s
new national media ad campaign. Globix has increased the number of employees from 216 on
December 31, 1998 to 511 on December 31, 1999. In addition, the increase in net loss in
the quarter is attributable to the increase in depreciation resulting from the buildout
of our network and facilities.
Significant events during Q1 2000:
- Completed an $80.0 million convertible preferred stock private placement to the investment firm of Hicks, Muse, Tate & Furst;
- Completed a 2-1 stock split in December;
- Surpassed 500 public and private peering connections;
- Launched the Globix Streaming Media network capable of serving over 125,000 simultaneous streams;
fulfilled over 14 million requests for Streaming Media customers; and
- Joined the Microsoft Windows Media Broadband Jumpstart Initiative.
About Globix
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.
Globix Corporation and Subsidiaries Consolidated
Statements of Operations (In thousands, except
per share data)
3 Months Ended
12/31/99 12/31/98
Revenues:
Internet $6,956 $2,281
Server sales and integration 9,189 3,648
Total revenues 16,145 5,929
Cost of revenues:
Internet 2,539 565
Server sales and integration 7,517 3,137
Total cost of revenues 10,056 3,702
Gross profit 6,089 2,227
Selling, general and
administrative 19,695 5,566
EBITDA (13,606) (3,339)
Depreciation and amortization 3,357 507
Loss from operations (16,963) (3,846)
Interest and financing
expense, net (3,848) (3,973)
Net loss $(20,811) $(7,819)
Dividends and accretion
on preferred stock 531 --
Loss available to
common stockholders $(21,342) $(7,819)
Basic and diluted net
loss per share $(1.27) $(0.94)
Weighted average common
shares outstanding 16,779 8,280
Contact:
Globix Corporation
Charles Strauzer
VP – Corporate Finance
212-625-7327
[email protected]
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