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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Tim Cruise who wrote (1434)	8/3/1999 10:28:00 PM
From: Teddy	Respond to of 15615

Replay of Conference Call available: 1-800-633-8284. Access Code: 12825573# The call, like all Global Crossing calls, was very positive but not long enough. This is some of the interesting things that i herd. I'm going to combine some of the things said in the Opening Remarks with the Q&A so its not in the order of the call, but it makes more sense. Also, don't forget to read the Company's filings with the SEC. Merger with Frontier is on schedule. Received approval from 40 states and expect a couple more this week. (Note to over seas investors: there are 50 states.) Shareholders of both companies should receive proxies “soon.” Global Crossing shareholder meeting and vote is scheduled for September 22nd, Frontier's the next day. They have a great, friendly relationship with Frontier. The transitions team meet weekly and they expect the implementation will be very smooth. The combined company will be able to offer “Global customer to customer connectivity” and the first year should have $1 Billion in EBITDA. They bought 100 miles of 96 fibers in the New York City market from Telergy. That is the first step in a planned ring in NYC to get closer to the customer. They are analyzing various building to building. They actually commented on the stock price (as relating to the collar ). Pretty much said: Hey, the Market goes down in July and August, stock price decline is a Market issue not a company specific issue. We reported an excellent quarter and are confident on all aspects of the business going forward. Global Crossing's average share price would have to be lower than 34.56 for 15 randomly selected days in the period 30 day period before closing for the deal to be in danger. If that did occur, (they didn't seem to think it would, but they were asked) Global Crossing would have the option of adding stock or cash. They have about $500 million in cash and $1.5 billion in available credit more than what they need to complete the announced network build out. They expect to make a profit laying the cable for Africa One and also get product and capacity. Positive booking going forward on AC1. Average pricing in Q2 unchanged from Q1 on CCA's. Estimate 20% to 30% price decline in the future, but their cost per unit is declining much faster. FLAG: we expect to win the business. Our network is in place. Their business model is contingent on some aggressing pricing, we have a much lower cost structure. Comfortable with demand on PC1 and Global Network Offer. Not breaking out back log, only report sales on activated circuits. That's most of the main stuff, i think The call last about 20 minuets. Everyone seemed pleased about the quarter and confident about the future.