Exhibit 99.1
PRESS RELEASE
Globix Corporation Reports Second Fiscal Quarter 2003 Results, Buys Back
Additional Debt
New York - May 16, 2003 - Globix Corporation (OTC: GBXX) today reported
financial results for its second quarter of fiscal year 2003, which ended March
31, 2003, citing progress in its post-restructuring period. The company also
announced that it had repurchased an additional $3.5 million of its Senior Notes
on 4/4/03 in addition to the $6.4 million it had repurchased in the second
fiscal quarter of 2003 that was previously reported.
Revenues for the quarter were $15.4 million, which was $6.0 million, or 28% less
than the same period in 2002. The company also reported that in the second
fiscal quarter of 2003 cost of revenues was reduced 46% to $5.3 million from the
same period in 2002, and that sales, general and administrative costs were
reduced 41% to $12.6 million reflecting the continuing impact of the company's
restructuring and cost management efforts.
Loss from operations was approximately $6.2 million for the second fiscal
quarter of 2003, compared to approximately $50 million for the same period a
year earlier. Net loss attributable to common shareholders was $7.1 million, or
$.43 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 $69.6 million, or $1.75 per share, based on 38,688,862 common
shares then outstanding.
Globix Corporation & Subsidiaries
Un-audited Condensed Results of Operations
(Dollars in Thousands Except Per Share Data)
Three Months Ended March 31
2003 2002
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Restated
Successor Predecessor
Company Company
Revenue ................................................................... $ 15,368 $ 21,389
Operating costs and expenses:
Cost of revenue ...................................................... 5,274 9,737
Selling, general and administrative .................................. 12,570 21,401
Restructuring charges ................................................ -- 24,834
Impairment of intangible assets ...................................... -- 3,221
Depreciation and amortization ........................................ 4,116 12,174
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Total operating costs and expenses ........................................ 21,960 71,367
Other operating income ............................................... 345
---
Loss from operations ...................................................... (6,247) (49,978)
Interest and financing expense ....................................... (3,561) (14,036)
Interest income ...................................................... 347 875
Other income/(expense) ............................................... 204 (506)
Gain on debt discharge ............................................... 2,044 --
Minority interest in subsidiary ...................................... 120 955
Reorganization Items ................................................. -- (5,598)
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Net loss .................................................................. (7,093) (68,288)
Dividends and accretion on preferred stock ........................... -- (1,329)
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Net loss attributable to common stockholders .............................. $ (7,093) $ (69,617)
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Basic and diluted net loss per share attributable to common stockholder ... $ (0.43) $ (1.75)
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Weighted average common shares outstanding--basic and diluted ............. 16,460,000 39,688,862
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About Globix:
Globix (http://www.globix.com) is a leading provider of managed infrastructure
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. Globix customers include the New York Post, MSI (part of Reed
Business Information) SkyRock, ebookers.com, Globus Media, The Record Store,
Holmes Place, Agalinks, Space Holdings (Space.com), WinMill Software, iPass,
Digidesign, and Mason-McDuffie Real Estate.
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:
Michael van Dijken
212-625-7546
917-428-3366
mvandijken@globix.com