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Global Crossing Announces First Quarter Results; Accelerates
Pacific Crossing Connecting Asia and the Americas
Expanding customer base drives first quarter revenues to $178
million and adjusted EBITDA to $95 million.
Acquisition of Global Marine undersea cable service fleet
expected to close within 60 days.
Merger with Frontier expected to close in third quarter.
Pacific Crossing accelerated to fill current shortage of
trans-Pacific capacity.
HAMILTON, Bermuda, April 28 - Global Crossing Ltd. (Nasdaq: GBLX;
BSX), the owner and operator of the world's most advanced IP-based fiber optic
network, today reported results for the first quarter ended March 31, 1999, and
announced the acceleration of its Pacific Crossing fiber optic cable connecting the
U.S. to Japan. First quarter revenues were $178 million, adjusted EBITDA was $95
million, the net loss before extraordinary item was $0.2 million, and the net loss was
$15 million.
''We're very pleased with our progress in the first quarter,'' said Bob Annunziata,
Chief Executive Officer of Global Crossing. ''Our expanding sales and customer
base, along with soaring demand for telecommunications in Asia, drives our decision
today to accelerate to December 31 the initial service date for our Pacific Crossing
system connecting Japan and the Americas. In North America, our agreement during
the quarter to acquire Frontier Corporation puts us on a path to add 120 cities in the
U.S. to our global network. We expect to close the merger in the third quarter, as
we announced previously. In the meantime, we are pushing to complete the global
fiber optic network we are already building. We saw full ring completion on Atlantic
Crossing 1 (AC-1) in February, expanded our plans in Europe, and announced new
systems for South America and the Atlantic. We also reached an agreement to
combine our network with Cable & Wireless' Global Marine's undersea capabilities,
allowing us to offer unprecedented service packages to our customers.''
Pacific Crossing service accelerated
Initial service for Pacific Crossing (PC-1), previously planned for March of 2000,
has been accelerated to December 31, 1999. PC-1, a fiber optic cable link between
Asia and the Americas, will connect with the Global Crossing global network at two
landing points in the United States and two landing stations in Japan. A 1,300
route-kilometer terrestrial system being constructed by Global Access Limited
(GAL) will link PC-1 with Tokyo and also be in service by December 31, 1999.
GAL will add Osaka and Nagoya to the system in 2000.
''Tokyo, Osaka, and Nagoya account for more than 70% of Japan's international
telecommunications traffic,'' said David Lee, Global Crossing's President and Chief
Operating Officer. ''Global Crossing and Marubeni Corporation, our partner on
PC-1 and GAL, are entering the market just as Japanese internet users approach the
20 million mark and bandwidth needs between Japan and major cities of the world
are growing at 50% per year.''
Global Marine acquisition
On April 26, Global Crossing announced a definitive agreement to acquire the
Global Marine business of Cable & Wireless plc in a transaction valued at 550
million pounds (approximately $885 million). Global Marine is the world's largest
and most advanced undersea cable installation and maintenance company servicing
more than one-third of the undersea cable in the world. The acquisition will give
Global Crossing a unique asset at a time of rapid growth in the $10 billion market for
undersea cable deployment driven by exploding international demand for data, voice,
video and Internet connectivity. Global Marine is expected to generate cash flow
approaching $100 million in the current fiscal year. The transaction, which is
expected to be completed within 60 days, is subject to certain regulatory and other
approvals.
Financial highlights for the three months ended March 31, 1999 and 1998 |
