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Technology Stocks : Infonet - Leader of Managed Data Communicaton Services -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (157)	11/6/2001 9:22:06 AM
From: JakeStraw	Read Replies (1) \| Respond to of 241

Infonet Announces Fiscal 2002 Second Quarter Results 13 Percent Quarterly Growth in Core Services biz.yahoo.com EL SEGUNDO, Calif.--(BUSINESS WIRE)--Nov. 5, 2001--Infonet Services Corporation (NYSE:IN): Financial Highlights Q2 FY 2002 vs. Q2 FY 2001: Total revenue: $160 vs. $156 million, up 3% Core services revenue: $126 vs. $111 million, up 13% New client contracts: 185 from 135, up 37% EBITDA $13 million, down from $22 million Infonet Services Corporation (NYSE:IN - news; FSE:IN) today announced fiscal year (FY) 2002 first half revenue of $332 million versus $310 million, and second quarter (Q2) revenue of $160 million versus $156 million for the comparable periods of FY 2001. Revenue from core services - network services and consulting, integration and provisioning services, which account for 78 percent of revenues in Q2 FY '02 - grew 15 percent in the first half of FY '02 compared to the first half of FY '01. For the second quarter, core services grew 13 percent compared to Q2 FY '01. Jose A. Collazo, Chairman, President, and CEO of Infonet, said, ``We continue to expect to derive approximately $140 million in AUCS-related revenue in FY '02.'' AUCS revenues are expected to account for approximately 20 percent of Infonet's total revenues. ``We expect to complete migrating the remaining clients to the Infonet platform by the end of September 2002, when our management contract with AUCS expires.'' EBITDA, Operating Income, Net Income, and EPS ``The strength of our business model has allowed us to maintain positive EBITDA in spite of our reduced top line revenue growth rate when compared to prior periods,'' said Mr. Collazo. Infonet's earnings before interest, taxes, depreciation and amortization (EBITDA) during the first half of FY '02 decreased to $35 million from $40 million in the first half of FY '01. For Q2 FY '02, EBITDA decreased to $13 million from $22 million in Q2 FY '01. The decrease in EBITDA is primarily attributable to declining AUCS-related revenue. Operating income excluding stock-based compensation charges during the first half of FY '02 decreased to a loss of $1 million from a profit of $15 million in the first half of FY '01. Operating income excluding stock-related compensation charges was a loss of $6 million in Q2 FY '02. Infonet reported a first half FY '02 net loss of $1 million, down from a profit of $12 million in the comparable first half of FY '01. Second quarter FY '02 net income was a loss of $4 million versus income of $5 million in the comparable quarter of FY '01. ``During the second quarter we wrote off $2 million of our investment in Broadedge Corporation, a satellite services company,'' said Mr. Collazo. ``This one-time write-off has affected our Q2 profitability.'' As a consequence, basic and diluted earnings per share for the first half of FY '02 were $0.00 and $(0.01) for Q2 '02. Client Data During the second quarter, Infonet added 185 new client service contracts. Of these 109 were new clients and 76 represented new sales to existing clients from cross-selling activities. When added to the new client service contracts signed in the previous quarter, Infonet signed 370 new client contracts during the first half. This number is up 42 percent from the comparable period last year. ``First-half new customer service contracts set the stage for revenue growth in our core services in the second half and into the next fiscal year,'' said Mr. Collazo. Guidance ``Infonet cannot entirely escape an adverse impact from the global economic downturn,'' said Mr. Collazo. ``The intensifying slowdown appears to be having an impact on Infonet's business. We are forecasting a decline in our core services overall growth rate from prior levels for the second half of this year.'' Mr. Collazo reiterated that the company is fully funded. ``We have over $500 million in cash and expect to be free cash flow positive in FY '03.'' He also said that he was comfortable with the lower end of the current range of analyst estimates for Infonet's FY '02 revenue - between $666 and $698 million. ``We expect core services revenue growth between 12 - 15 percent. We continue with planned capital expenditures of below $100 million for this fiscal year. More importantly, we expect to finish the year with positive EBITDA.''