PSINet Continues Dramatic Growth in 1997; Average New Customer Value Increases over 20%
Tuesday, January 20, 1998 05:56 PM
> HERNDON, Va. -- PSINet Inc. (Nasdaq:PSIX), the first commercial Internet Service Provider, today announced that it provided service to 26,400 corporate customers during the fourth quarter of 1997, an increase of 3,400 customers over the third quarter of 1997. This fourth quarter increase in customers is 26% greater than the increase achieved in the fourth quarter of 1996. Also, 550 customers upgraded their service, 45% more than upgraded in the third quarter of 1997.
PSINet's annual growth continues at a rapid pace as well. During 1997, the customer count grew by 48% (or 8,600 customers) over the 17,800 customers served at the beginning of the year. The company added over 12,700 new contracts in 1997, 30% more than the 9,800 added in 1996. More importantly, the average annual value of these new customers increased by 22% from $4,500 to $5,500. PSINet's Carrier and ISP Services (CISP) business unit more than doubled its customer base to 47 customers at the end of 1997 from 22 at the end of the previous year. Furthermore, the company's international PSIWeb service hosted 4,200 customers in 1997, 67% more than the 2,530 hosted in 1996. The change in retention rate for 1997 is primarily attributable to PSINet actively terminating customers that were delinquent in paying service fees.
On January 23, PSINet will be holding a special shareholder's meeting to approve its purchase of fiber from IXC Communications. The fiber will allow PSINet to not only broaden the number of customers it is able to support, but also offer next-generation IP-based business communications services and value-added applications such as electronic commerce, intranets/extranets, multimedia services, data storage/retrieval, Internet fax, and other integrated communication services.
PSINet will release its financial operating results for the fourth quarter of 1997 (year-end results) on February 10, 1997.
About PSINet
PSINet is a leading provider of turn-key corporate Internet and intranet access, managed security services, electronic commerce solutions and Web hosting services throughout the United States and abroad. PSINet manages one of the world's largest and most advanced fast-packet networks, which provides state-of-the-art, high speed Internet access ranging from dedicated high-speed circuits to ISDN to high-speed modem dial-up. PSINet backs up its state-of- the-art network with the industry's original service guarantee, employing automatic back-up systems and crediting for service outages.
Headquartered in Herndon, Va., PSINet has offices throughout the U.S. and subsidiaries in Canada, Japan and Europe, including Belgium, France, Germany, the Netherlands, Switzerland, and the U.K. For more information contact PSINet by phone at 703-904-4100, by e-mail at info@psi.com or by accessing the corporate Web site at psi.net.
/CONTACT: Kelli Harrington Nemer, Manager, Investor Relations, 703-904-4100, ext. 1245 or e-mail, harringtonk@psi.com; or Michael P. Binko, APR, Manager, Public Relations, 703-904-4285, or e-mail, binkom@psi.com, both of PSINet/
Quote for referenced ticker symbols: PSIX |
