Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: mts362 who wrote (2899)	10/27/1999 10:42:00 AM
From: Robert Sheldon	Read Replies (4) of 15615

GBLX Conference Call October 27, 1999 Some interesting comments from the CC: [ ] denotes my commentary. 1) Data Products growing at an accelerating rate, well into the triple digits. [Good grief.] 2) Biggest and largest capacity sales are on Global Network not by section. [this shows that the synergy of the network and the exponential value creation is starting to show up in the capacity purchases.] 3) PC-1 is three months ahead of schedule. [this is significant in that last month management stated in the press as well as on CCs that they were at least one year ahead of the other Pacific consortium in deployment . . . this increases that lead to 15 months – the consortium has not been able to obtain landing rights on the US West Coast due to various Justice Department concerns.] 4) The North American network has 1 OC 192 turned up and a couple more will be turned up by the end of the year. [GBLX did not even envision having 1 OC 194 up at this time but demand is rocketing.] The Northeast [US] is experiencing particular shortages, and the network is full. Demand is exceeding capacity network wide with the possible exception of San Diego to El Paso [laugh]. 5) Due to network shortages new customers have to notify/plan at least six months out. Capacity shortages should continue well into the first half of 2000. [management seemed to use this figure apparently due to their reluctance to forecast anything past six months – very bullish business case insinuation.] 6) 150,000 square feet available at Global Centers, with an expected 800,000 square feet available in the near future. Some new Global Center announcements/expansion are in the offing. [I posted a note a while back that referenced a study showing that each square foot of Global Center (data center) space created approximately ~$900 per year while the cost of building it is only ~$300. This means that the Global Centers may generate in the realm of $1BB per year under the current build-out strategy.] eoffering.com 7) GBLX has an agreement with LU that not only gives GBLX priority over equipment shipments but new technologies. [With all the talk of capacity shortages, it sure is nice to know that our friends at GBLX will always be at the head of the line for equipment to build out their network.] 8) EBITDA should grow in the 30%s range. [This is clearly conservative due to the above mentioned stuff.]

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