Genuity Delivers 13 Percent Annual Revenue Growth
Earnings in Line with Previous Guidance
Wednesday August 8, 7:33 am Eastern Time
SOURCE: Genuity Inc.
WOBURN, Mass.--(BUSINESS WIRE)--Aug. 8, 2001--Genuity Inc. (NASDAQ: GENU - news) today announced second quarter 2001 results with revenues of $303 million in the quarter, an increase of 13 percent over the second quarter of 2000. This reflects increases in all domestic segments, including 20 percent growth in Managed Web Hosting and Value-Added Services.
Second quarter 2001 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from operations, which improved slightly from the prior quarter, was a loss of $195 million. Including a special charge of approximately $48 million related to the previously announced separation of employees and consolidation of facilities, the consolidated EBITDA loss for the quarter was $243 million. Genuity's second quarter 2001 pro forma loss per share from operations, assuming full conversion of Class B common stock, was $0.31, favorable to Genuity's previously provided guidance. Including the special charge, the reported pro forma loss per share was $0.36.
``Our two-pronged strategy, which we announced earlier this year, focuses on increasing revenue and improving margins through growth in our Managed Web Hosting and Value-Added Services lines of business, and reducing costs to improve the profitability of our other service offerings,'' said Genuity Chairman and Chief Executive Officer Paul R. Gudonis. ``We continue to believe that our strategic direction is sound and will create long-term value for our shareholders, but the significant slowdown in IT spending continues to affect the pace of growth in our business and the full realization of the financial benefits of this strategy. In light of the economic environment, last quarter we announced a workforce reduction and also have begun to realize the improvement in our circuit cost initiatives, enabling us to meet our earnings objectives for the quarter and going forward.''
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