Don't know that much about Tyco, but it looks pretty good for the sector as a data point?
TyCom Reports 16% Increase in Net Income for First Quarter
Construction of TyCom Global Network on Schedule
PEMBROKE, Bermuda, Jan. 17 /PRNewswire/ -- TyCom Ltd. (NYSE: TCM; BSX: TCM) today announced that net income for the first fiscal quarter ended December 31, 2000, was $72.8 million, an increase of 16 percent over the same period last year. EBITDA reached $107.8 million, or 21 percent of net sales compared to 19 percent of net sales a year earlier. Diluted earnings per share for the quarter were 14 cents.
Revenues for the quarter were $523.2 million, compared to $629.2 million for the comparable quarter in 1999. This reduction of 17 percent reflects TyCom's continued transition from a supplier of undersea systems to also being an owner-supplier of the TyCom Global Network (TGN). During this fiscal year a portion of manufacturing capacity is dedicated to the build out of the TGN.
``TyCom is coming off another great quarter,'' said L. Dennis Kozlowski, Executive Chairman of TyCom and Chairman and CEO of Tyco International. ``We believe the business is well positioned to provide strong earnings driven by the supply of third-party systems and sales of capacity on the TGN.''
``This is a great start for the year and a solid foundation for continued strong performance,'' said Neil Garvey, President and CEO of TyCom. ``We have recorded outstanding results. Cash flows from our $2.9 billion backlog, combined with our available cash of $2.0 billion, will continue to provide the funding for the build out of the TGN. As previously reported, we have entered into agreements to supply capacity on both the transpacific and transatlantic routes, and construction activities are proceeding on schedule,'' he added.
TyCom also announced that it continues to move forward with deployment of the TyCom Global Network. In recent months landing licenses have been received in the U.S. and Europe. Construction has begun on the global network management center in the U.S., as well as regional operations centers in London and Guam and cable stations elsewhere in the world. Dark fiber has been acquired in the Eurotunnel to connect London and Paris, and agreements are being put in place for all required backhaul to support the transatlantic segment. Manufacturing of optical equipment and cable is proceeding at TyCom's three U.S. production facilities, and cable laying has begun across the Atlantic.
The first phase of the TyCom Global Network is designed to offer multi-terabit capacity upgradeable to a maximum of 7.68 terabits per second, span approximately 70,000 undersea kilometers and connect 30 major cities around the globe. TyCom plans to design and manufacture the undersea cable, optical amplifiers and terminal equipment, and plans to design, build and equip the global and regional network management centers, TelExchange centers and cable stations along the route. TyCom's own fleet of cable ships, one of the world's largest, will install and maintain the system.
The Company will discuss first quarter results on a conference call for investors today at 10:30 am EST. The conference call can be accessed at the following website tycomltd.com.
ABOUT TYCOM LTD.
DOn't know whether they are a component supplier or a network builder like GX? I guess both. |
