Infonet Says Company Has Weathered ``Perfect Storm''
Monday March 15, 9:00 am ET
Company Provides Revenue, EBITDA and Cash Guidance
biz.yahoo.com
NEW YORK--(BUSINESS WIRE)--March 15, 2004--Infonet Services Corporation (NYSE:IN) CEO Jose A. Collazo said that Infonet has weathered a "perfect storm."
"The `perfect storm' for Infonet," said Mr. Collazo, "has included sharply increased local access costs coupled with severe price deflation, reduced tech spending in a sluggish global economy and shareholder class action lawsuits. Infonet emerges from that storm in great operational and financial shape."
Mr. Collazo also provided guidance for the company, saying that he expects net services revenue to be approximately $620 million for fiscal 2004 (ending March 2004). He expects net services revenue to grow approximately 10% in fiscal 2005 (ending March 2005). He also foresees positive EBITDA for fiscal 2004, increasing substantially in fiscal 2005.
"Despite a challenging sector environment, growth continues to be driven by demand for our global managed data network services and the sale of new services. These services include managed security services, managed extranets, intelligent IP network for Call Centre Services and VoIP -- which is the first wave of convergence," said Mr. Collazo.
"Our goal is profitability," he said. "We expect to be free cash flow positive in the next 12 months and to be profitable after taxes in the next 24 months, while maintaining a cash balance in excess of $350 million. In addition, we expect our capital expenditures to be approximately 10% of our net services revenue in fiscal 2005.
"Infonet continues to make progress with its economic model, which is generating growth and cash flow.
"We expect to meet our goals by continuing to execute on our strategy of providing superior customer service to multinationals, offering a robust suite of cutting-edge services, leveraging Infonet's assets and new technologies to reduce indirect costs, and reducing the growth in local access costs."
Mr. Collazo will give a presentation in New York City on Tuesday, March 16, 2004, in association with the Merrill Lynch Global Telecom Conference. The presentation slides will be available on the Web at infonet.com. |
