Exhibit 99.1
PRESS RELEASE
Globix Reports First Fiscal Quarter 2003 Results
o Files SEC 10-K for fiscal year-end 2002 (ended September 30, 2002) and
10-Q for first fiscal quarter 2003 (ended December 31, 2002)
o Buys back 13% of its Senior Notes through February 2003
NEW YORK - March 28, 2003 - Globix Corporation (OTC: GBXX) today reported
financial results for its first quarter of fiscal year 2003, which ended
December 31, 2002, as well as financial results for its fiscal year 2002 which
ended September 30 2002. Globix also announced that it had purchased
approximately 13% of its Senior Notes through February 2003.
Revenues for the first fiscal quarter of 2003 were $16.5 million, which was $6.9
million, or 30% less than the same period in 2002. The company also reported
that cost of revenues in the first fiscal quarter of 2003, however, was reduced
42% to $5.6 million from the same period in 2002, and that sales, general &
administrative costs in the first fiscal quarter of 2003 were reduced 52% to
$11.9 million relative to the same period a year earlier, reflecting the impact
of the company's Chapter 11 restructuring and cash management efforts. Globix
and two of its wholly-owned subsidiaries filed for Chapter 11 bankruptcy
protection in March 2002, and emerged from bankruptcy on April 25, 2002.
Loss from operations was approximately $4.8 million for the first fiscal quarter
of 2003, compared to $23 million for the same period a year earlier. For the
fiscal quarter, net loss attributable to common shareholders was $5.3 million,
or $.32 per share based on 16,460,000 common shares outstanding at the end of
the quarter. For the same period a year earlier, the net loss attributable to
common shareholders was $43.5 million or $1.11 per share based on 38,979,005
common shares then outstanding.
Globix Corporation & Subsidiaries
Un-audited Condensed Results of Operations
(Dollars in Thousands, Except Per Share Data)
Quarter Ended
Successor - Predecessor -
December December
31,2002 31,2001
Revenue $ 16,480 $ 23,379
Cost of Revenue $ 5,624 $ 9,663
Selling, General and Administrative $ 11,891 $ 24,748
Depreciation & Amortization $ 3,727 $ 12,012
----------------- -----------------
Loss from Operations $ (4,762) $ (23,044)
Interest & Financing $ (3,904) $ (20,024)
Interest Income $ 388 $ 966
Other Income (expense) $ 182 $ 110
Gain on Debt Discharge $ 2,727 -
Minority Interest on Subsidiary $ 108 $ 389
----------------- -----------------
Net Loss $ (5,261) $ (41,603)
Dividends & Accretion on Preferred Stock - $ (1,848)
----------------- -----------------
Net Loss Attributable to Common Shareholders $ (5,261) $ (43,451)
================= =================
Basic & Diluted Loss Per Share Attributable to Common
Shareholders $ (0.32) $ (1.11)
================= =================
Weighted Average Common Shares Outstanding -
Basic and Diluted 16,460,000 38,979,005
About Globix:
Globix is a leading provider of managed infrastructure services for business
customers. Globix delivers applications and services via its secure Data
Centers, high-performance global Tier 1 IP backbone, content delivery network,
and its technical professionals. Globix provides businesses with technology
resources and the ability to deploy, manage and scale mission-critical
Internet-based operations for optimum performance and cost efficiency.
Risk Factors and Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. These statements are based
on current information and expectations and are subject to risks and
uncertainties that could cause the company's actual results to differ materially
from those expressed or implied in the forward-looking statements. These risks
and uncertainties include: the company's ability to retain existing customers
and attract new customers; its ability to match its operating cost structure
with revenue to achieve positive cash flow; the sufficiency of existing cash and
cash flow to complete the company's business plan and fund its working capital
requirements; the insolvency of vendors and other parties critical to the
company's business; the company's existing debt obligations and history of
operating losses; its ability to integrate, operate and upgrade or downgrade its
network; the company's ability to recruit and retain qualified personnel needed
to staff its operations; potential market or technological changes that could
render the company's products or services obsolete; changes in the regulatory
environment; and other changes that are discussed in the company's Annual Report
on Form 10-K and other documents that the company files with the Securities and
Exchange Commission.
Press Contact:
Mitchell Moore
212-625-7878
802-598-6856
mmoore@globix.com