XO Communications Reports 3Q Results >XOXO Telecom might move, we have to wait and see.
( BW)(VA-XO-COMMUNICATIONS)(XOXO) XO Communications Reports Record Breaking Revenue in Third Quarter as Sales of Data Services Expand
Business/Financial Editors
RESTON, Va.--(BUSINESS WIRE)--Oct. 30, 2000--XO Communications, Inc.
(Nasdaq:XOXO), one of the world's fastest growing providers of
broadband communications services and formerly known as
NEXTLINK/Concentric, today announced financial results for the quarter
and nine month period ended September 30, 2000.
Total revenue grew to $224.3 million in the third quarter of 2000, a
59 percent increase over revenue reported in the second quarter of
2000, and a 199 percent increase over revenue reported in the third
quarter of 1999. Year-to-date revenue totaled $470.8 million as of
September 30, 2000, a 155 percent increase over the comparable period
in 1999. In June 2000, XO consummated a merger with Concentric
Networks, which contributed to the increase in revenue over prior
periods. Of the total revenue reported in the third quarter of 2000,
$104 million was derived from voice services revenue, including
revenue from local, long distance voice and other enhanced voice
services, and $117.9 million resulted from data services, which
includes Internet access, network access, and web hosting. Other
revenue for the third quarter of 2000 was $2.4 million. Financial
results for the last 15 days of the second quarter of 2000 and for the
third quarter of 2000 include the operations of Concentric Networks
following the completion of its merger with the company on June 16,
2000.
The EBITDA loss totaled $88.9 million in the third quarter of 2000,
compared to an EBITDA loss of $55.6 million in the third quarter of
1999. Year-to-date EBITDA loss totaled $220.7 million as of September
30, 2000 compared to an EBITDA loss of $154.8 million in the first
nine months of 1999.
"We are pleased to have once again delivered on our business plan
this past quarter and believe our performance further illustrates XO
Communication's ability to consistently deliver solid financial
results for our investors," said XO Chairman and CEO Dan Akerson.
"That we were able to execute our plan during a transition time in our
industry, and in a quarter during which we experienced a Verizon work
stoppage that impacted many of our largest markets is a tribute to our
employees, all of whom are intensely focused on winning in this
marketplace."
Today, XO reported that it had launched commercial broadband
wireless service in 13 markets in the third quarter and now has fixed
wireless capabilities in 17 markets including New York, Boston,
Chicago, Cleveland, Newark, Philadelphia, Columbus, St. Louis,
Washington D.C., Dallas, Houston, Memphis, Los Angeles, Orange County,
Sacramento, San Francisco and Seattle. XO expects to reach its goal of
serving 25 markets via broadband wireless by year-end. Additionally,
last month, XO announced that it launched broadband services in
Portland, Oregon and Austin, Texas, which brings the total number of
XO markets in service to 53.
During the third quarter, XO made a number of important
announcements that showed continued progress toward the company's goal
of becoming a global provider of integrated, facilities-based
broadband communications services.
In late September, XO announced the introduction of revolutionary
flat rate service packages in the United States for small and
medium-sized business locations with 10-100 employees that include
local, long distance, Internet Access and Web hosting services. The
company also announced that the XO Communications name would replace
the NEXTLINK and Concentric brands in the marketplace and would be
supported in the U.S. by an extensive fall advertising campaign that
is now underway.
"As we begin to productize our unrivaled broadband network assets,
XO is blurring the lines between local and long distance and voice and
data services," continued Akerson. "The result is that customers are
now buying fully integrated communications services with the
simplicity and quality they crave through XO service packages that are
extremely difficult for our competitors to truly match."
Additionally, XO announced that it is launching a suite of Ethernet
services including Gigabit Ethernet (GigE) in selected markets in
November and expects to launch those services throughout most of its
53 markets in the United States by mid-next year. At the same time,
the company announced that XO would be a preferred provider of
Ethernet services to Internet giant Yahoo.!
XO also made progress on its international expansion initiatives
during the quarter. Last month, XO named industry-veteran Mike Read as
President of XO Europe. Prior to joining XO, Read was CEO of Internet
Service Provider OneMain.com, and prior to OneMain, he spent more than
30 years at British Telecom, finishing his career as BT's Chief of
Global Engineering where he was responsible for the company's network
and system strategy throughout its worldwide alliances.
Currently XO has more than 400 employees in Europe providing
commercial Internet Access, hosting and security solutions and
operating broadband networks and four European data centers in the
United Kingdom, Paris and Amsterdam. Earlier this year, XO announced
plans to extend its broadband network presence into Europe with an
agreement in principle to acquire five metro European networks, a
Pan-European inter-city network and transatlantic capacity that will
reach 10 Gbps in the next two years. |
