In bold by me, game set match as Legere from AGCX would call it:
Revised 2001 financial guidance
360networks is reducing its planned capital expenditures in 2001 from $3.5-$4 billion to $2.2-$2.4 billion. 360networks is also revising guidance for 2001 cash revenue from $2.4-$2.6 billion to $1.2-$1.4 billion. Consequently, the company is also revising adjusted EBITDA from $1.8-$1.9 billion to $750-$800 million, GAAP revenue from $650-$750 million to $550-$600 million, and EBITDA from $110-$160 million to $20-$30 million.
As part of the reduction in capital expenditures, the company is investigating solutions to delay the development of a transpacific network. In addition, the current plan does not contemplate any further funding to the subsidiary purchasing fiber on C2C, a pan-Asian undersea network.
``We remain committed to operating a global network and providing seamless, portable and scalable broadband services,'' said Jimmy Byrd, chief operating officer of 360networks. ``However, we are building first where we see the highest and earliest returns. In the meantime, we have purchased flexible, portable capacity on other Asian networks to achieve a global footprint and serve our customers quickly and cost-efficiently.''
``The development of this revised business plan is due in large part to the current weakness of the capital markets, which makes customers and vendors alike hesitant to make significant financial commitments. As economic conditions improve, we believe we will be able to reaccelerate the growth of our built global network,'' Byrd added.
Wittman continued: ``Under the revised business plan, 360networks will require additional working capital of approximately $300 million over the next four months. We are currently in discussion with existing shareholders to resolve this issue. That funding, if completed, would likely be in the form of additional senior debt. Based on the revised business plan and the incremental $300 million in funding, we would be funded through the point when our business is expected to be cash flow positive in 2002.'' |
