(PR NEWSWIRE) Global Crossing Revenues to Exceed Analysts' Estimates
Global Crossing Revenues to Exceed Analysts' Estimates
* Second quarter revenues expected to be approximately $190 million
* Strong Atlantic system performance is key to second quarter
* Significant contract sales signed on new systems not yet in service
HAMILTON, Bermuda, July 12 /PRNewswire/ -- Global Crossing Ltd.
(Nasdaq: GBLX), which is building and operating the world's first and most
advanced global IP-based datacentric network, announced today that its second
quarter revenues are expected to be approximately $190 million, exceeding
analysts' estimates and the company's internal targets.
Continuing robust sales and circuit activations on the company's Atlantic
Crossing 1 (AC-1) cable, along with associated terrestrial circuits, are
responsible for the robust revenues. The company noted that, when final
second-quarter results are reported later this month, a number of one-time
expenses related to merger activity and financing will affect reported
operating results.
"Our sales and customer base have continued to expand during the quarter
along with the explosive demand for transnational, global telecommunications,"
said Bob Annunziata, Chief Executive Officer of Global Crossing. "In addition
to the strong performance in the Atlantic, we are particularly gratified by
the advance sales we have closed on systems other than AC-1 as we speed them
to completion. Pacific Crossing, Pan European Crossing, and Mid-Atlantic
Crossing are developing significant sales backlogs that will become revenue
after those systems enter service later this year. We're also building
significant backlog in our flexible Global Network Offer, which will become
revenue on AC-1 or our new systems as customers activate capacity where they
need it."
Also during the quarter, Global Crossing completed the acquisition of the
Global Marine subsidiary of Cable & Wireless plc. The company completed the
financing of the Global Marine acquisition, and refinanced its project debt,
through a new $3 billion corporate credit facility. The company continued the
rapid development of its global network during the quarter. On May 26th, the
company marked the first anniversary of the Atlantic Crossing 1 system, which
surpassed $1 billion in sales during its first year in operation. On June
4th, Global Crossing announced an agreement to serve as general contractor in
building the Africa ONE system, a fiber-optic system circling the African
continent. On June 15th, Global Crossing announced the completion of both
landings in Japan for Pacific Crossing 1, which will connect Japan to the West
Coast of the United States and be ready for service at year-end.
About Global Crossing
Global Crossing is building and operating the world's first and most
advanced global IP-based datacentric network, an end-to-end fiber optic
platform for data, voice, video and Internet transmissions. The Global
Crossing Network will span five continents and address 80% of the world's
international traffic. A new unit of Global Crossing, Global Marine Systems
Limited, possesses the largest flotilla of cable laying and maintenance
vessels in the world and currently services more than a third of the world's
undersea cable kilometers. Global Crossing's operations are headquartered in
Hamilton, Bermuda, with executive offices in Los Angeles.
Statements made in this press release that state the company's or
management's intentions, beliefs, expectations, or predictions for the future
are forward-looking statements. It is important to note that the company's
actual results could differ materially from those projected in such forward-
looking statements. Information concerning factors that could cause actual
results to differ materially from those in the forward-looking statements is
contained from time to time in the company's filings with the U.S. Securities
and Exchange Commission (SEC). Copies of these filings may be obtained by
contacting the company or the SEC.
General information: Visit Global Crossing at www.globalcrossing.com
on the World Wide Web.
SOURCE Global Crossing Ltd.
-0- 07/12/99
/CONTACT: Investor/analyst: Jensen Chow, 310-385-5283 or
jchow@globalcrossing.com, or Press: Tom Goff, 310-385-5231 or
tgoff@globalcrossing.com, both of Global Crossing Ltd./
/Web site: globalcrossing.com
(GBLX)
CO: Global Crossing Ltd.
ST: Bermuda
IN: TLS CPR
SU: ERP
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