Conference Notes:
PSINet Issues Financial Guidance
ASHBURN, Va., Sept. 15 /CNW/ -- PSINet (Nasdaq: PSIX - news), the Internet Super Carrier, today announced new financial guidance for the second half of
2000, and for 2001, incorporating the anticipated results of its recently acquired consulting solutions business.
For the second half of 2000, the Company anticipates revenue of between $920 million and $960 million, almost triple the revenue for the second half of the prior
year, and EBITDA of between $5 million and $15 million, compared with negative EBITDA of $17 million for the second half of the prior year. These estimates
include adjustments due to anticipated softness in the carrier access business, slower than anticipated growth in the seasonal transactions solutions business, and the
recent guidance revisions offered by Xpedior (Nasdaq: XPDR - news), a consolidated subsidiary 80% owned by PSINet.
For 2001, the Company anticipates full year revenue of between $2.3 billion and $2.5 billion, with approximately 60% derived from a combination of web hosting
and consulting solutions. EBITDA margin is anticipated to be between 7% and 10%.
Based upon current plans, PSINet anticipates that it will end 2000 with $.5 billion in cash and equivalents. The Company anticipates continued strong demand for its
managed web hosting solutions. In response to this demand, PSINet plans to continue the build out of web hosting centers, and will require an additional $.6 billion
of funding in 2001. The Company expressed confidence that it has the flexibility to raise this amount through a variety of financial sources, including the possible sale
of certain non-strategic assets.
"PSINet is focused on increasing margins and attaining profitability," said William L. Schrader, PSINet's chairman and chief executive officer. "We have assembled
the assets necessary to meet our customers' needs for vertically integrated web, ASP and e-business solutions. Our strategy is now to fill the fiber and hosting
centers that we have in place, concentrating on margin growth through high-end web hosting and related product sales. These sales will be accomplished through
bundled product offerings that will enable our customers to fill all their web hosting, eCommerce, access and implementation needs with PSINet." |
