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

To: TechMkt who wrote (6001)	5/2/2000 9:40:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 15615

Global Crossing To 'Affirm' Upside Guidance Wed, CEO Says By JOHNATHAN BURNS NEW YORK -- Global Crossing Ltd. (GBLX) Chief Executive Leo Hindery Jr. said the company will "affirm guidance on the upside" in a conference call Wednesday morning with analysts and investors. Hindery, saying he wanted to be fair to shareholders, wouldn't discuss specifics. After the market close Tuesday, the Hamilton, Bermuda-based telecommunications company said its first quarter loss from recurring operations was $279.4 million, or 36 cents a share, compared with $151.7 million, or 20 cents a share, in the fourth quarter. Including non-recurring expenses, the company posted a loss of $307.4 million, or 39 cents a share during the first quarter. A First Call survey revealed analysts had expected the company to post a loss of 43 cents a share. Hindery said the most telling measurement of the company's performance during the first quarter was its adjusted earnings before interest, taxes and depreciation from recurring operations, which swelled 23% sequentially to about $401.2 million from $325.4 million. "Most analysts had expected us to be in the $370 million to $375 million range," he said. "I think we exceeded expectations in every sense." Revenues were $1.12 billion, up 5% from the fourth quarter's $1.06 billion, as telecommunications revenue grew 7% to $860 million from $803 million. Data revenue now makes up 51% of telecommunications revenue, which helped raise margins to 31.2% from 28.8% the quarter before, Hindery said. He wouldn't comment on the company's plans for its incumbent local exchange carrier business, which offers local phone service in 13 states, with half of its operations in the Rochester, N.Y., area. The company said Monday it has retained Chase Securities Inc. and Merrill Lynch & Co. (MER) to help review its options for the nation's 10th-largest ILEC. The company is expected to sell the business. Global Crossing is building a worldwide IP-based fiber optic network to facilitate data traffic. Meanwhile, Hindery said the company expects its acquisition of IXnet Inc. (EXNT) to close in the middle or latter part of June. "The assimilation of that has gone well," he said. The acquisition, valued at roughly $3.8 billion, will add trading companies and financial institutions to Global Crossing's growing list of customers. -Johnathan Burns; Dow Jones Newswires; 201-938-2020; johnathan.burns@dowjones.com

To: TechMkt who wrote (6001)	5/3/2000 12:29:00 AM
From: Theophile	Respond to of 15615

Fex, the revenue mix is what I like (below) and the income from the increased sales force, for which the stock was hit last Qrtr on the increased expense, shows these guys are ahead of the power curve on what they needed to boost their revenues from the old-line of work. Revenues: >Revenues were $1.12 billion, up 5 percent from the fourth quarter, as data revenues jumped 27 percent to $519.2 million.> i.e. ~50% of the revenue is from data, which increased 27%, therefore it appears ~1/8 of their total revenue increased strictly on data products. Remember the emphasis is on data not voice, and we have bigger expenses than anticipated, but bigger income than anticipated too. They are still flying by the seat of the pants, but I am getting confirmation that these guys left T for good reasons, and are applying their expertise in a way that T won't even be good for Toast. Data is the driver of this decade. Bandwidth is the commodity that GBLX has for sale. Value-added bandwidth products are where the margins will deliver EPS when competitors are delivering promises, because the competition to drive out the contenders will be ferocious, and IS ferocious, as anyone who reads the CBS commentaries on GBLX is aware of. The competition is Now, to minimize the threat of new entrants, to keep margins lowest to starve out the competitors.....and this is where GBLX will have the edge, cutting costs down to the bone on their own pipes, no toll fees, able to keep lower prices for the same services. This is something else that will keep the EPS down until the market is divided up and staked out for the first movers....I do not expect the share price to rise too dramatically until the Street catches on to the clever business model, which will then create the catch phrase of gorilla attributes applied to GBLX. High barriers, high switching costs, developed value chain, and ubiquitous bandwidth for any and all to buy. We shall see. The Street may or may not react favorably, however it is my money, and I am already buying more if we go below my limit orders. And I am long for some October calls in the event we go above my limit orders. Either way, I am getting more, it seems. And I am appreciative of that posture. Regards, Martin Thomas