Solid growth here...
Globix Reports 172% Revenue Growth for Quarter; 49% Sequential Growth in Internet Segment Revenue
NEW YORK, Jan. 27 /PRNewswire/ -- 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.
Contact: Charles Strauzer, VP, Corporate Finance of Globix,
212-625-7327, cstrauzer@globix.com 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: Charles Strauzer, VP, Corporate Finance of Globix, 212-625-7327,
cstrauzer@globix.com/
16:29 EST
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