Globix Reports Financial Results for the Fourth Quarter and Fiscal Year 2003


NEW YORK, Dec. 23, 2003 (PRIMEZONE) -- Globix Corporation (OTCBB:GBXX) today reported financial results for the fourth quarter and fiscal year 2003, which ended September 30, 2003. The company also announced that it had repurchased $19.0 million of its outstanding 11% Senior Notes during the fiscal year 2003. In October of 2004 or the first quarter of fiscal year 2004 the company purchased an additional $7.0 million of its 11% Senior Notes.

For the quarter ending September 30, 2003 revenues were $13.8 million, compared to $18.0 million in 2002, a decrease of $4.2 million or 23.3% less than the same period a year earlier. Cost of revenues in the fourth quarter of 2003 were $4.5 million, compared to $6 million in 2002, a reduction of $1.5 million or 25%. Gross profit margin was $9.3 million or 67.4% in the fourth quarter of 2003, compared to $12 million or 66.7% in the fourth quarter of 2002. Sales, general and administrative costs for the fourth quarter of 2003 decreased $7.9 million or 42.5%, from $18.6 million in 2002 to $10.7 million in 2003. Loss from operations for the quarter ended September 30, 2003 was $4.0 million, compared to $10.1 million in 2002. Net loss attributable to common shareholders was $0.46 per share, compared to $0.83 per share for the same period last year.

For the fiscal year ended September 30, 2003 revenues decreased 26.6% to $60.1 million, from $82.0 million for the fiscal year ended September 30, 2002. Cost of revenue for 2003 decreased to $20.0 million from $32.6 million, a decrease of $12.6 million or 38.7%. Gross profit margin increased to 66.8% in 2003, compared to 60.0% in 2002. Selling, general and administrative expenses were $44.4 million or 73.4% of revenue for the year ended September 30, 2003, compared to $86.5 million or 105.5% for the year ended September 30, 2002. Loss from operations was approximately $18.4 million for the fiscal year 2003, compared to $98.7 million in 2002. Net loss for the fiscal year 2003 was $25.3 million, or $1.54 basic and diluted loss per share, compared to a net income of $138.8 million, or $2.68 basic earnings per share and $2.02 diluted earnings per share, respectively, for the fiscal year ended September 30, 2002. The existence of positive net income in fiscal year 2002 was due to $427.1 million in income from the discharge of indebtedness in connection with the company's emergence from bankruptcy in April 2002.


                     GLOBIX CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
          (Amounts in Thousands, Except Share and Per Share Data)

 Consolidated Statement 
  of Operations Data    

                       September 30,           September 30, 
                           2003                    2002      

 Revenue                    $13,810                 $18,021

 Operating costs 
  and expenses:

  Cost of revenues 
  (excluding 
  depreciation, 
  amortization,
   payroll and 
   occupancy shown 
   below)                     4,491                   5,953
  Selling, general 
   and administrative        10,716                  18,564
  Loss (gain) on
   impairment of 
   assets                   
  Restructuring and
   other charges 
   (credits)                 (1,020)                    
  Depreciation and 
   amortization               3,623                   3,606
                         -----------             -----------
                                  
 Total operating 
  costs and expenses         17,810                  28,123
  Other operating 
   income                        --                      --
                         -----------             -----------     
 Loss from operations       ( 4,000)                (10,102)
  Interest and 
   financing expense, 
    net                     ( 3,769)                 (3,503)
  Other income 
  (expense)                     626                     (12)
  Gain (loss) on 
   debt discharge                98                      --
  Reorganization 
   items                         --                      --
  Fresh start 
   accounting 
   adjustments                   --                      --
                                                         
  Minority interest
  in subsidiary                (333)                     --
                         -----------             -----------      

 Loss before income
  taxes                      (7,378)                (13,617)
 Income tax expense             167                      --
                         -----------             -----------    

 Net loss                  ($ 7,545)               ($13,617)
                                                           
  Dividends and 
   accretion on
   preferred stock               --                      --
                        ------------            ------------    
 Net loss 
  attributable to
  common stockholders      ($ 7,545)               ($13,617)
                        ------------            ------------ 

 Loss per common
  share:                                  

 Basic loss per 
  share attributable      
  to common stockholders    ($ 0.46)                ($ 0.83)
                         -----------             -----------
 Weighted average 
  common shares                          
  outstanding - 
   basic                 16,460,000               16,460,000
                        ------------              -----------
 Diluted loss per 
  share attributable 
  to common stockholders    ($ 0.46)                ($ 0.83)
                        ------------            ------------

 Weighted average 
  common shares                          
  outstanding 
  - diluted              16,460,000              16,460,000
                         -----------             -----------


                              Successor                  Predecessor
                               Company                     Company
                      -----------------------------      ------------
 Consolidated         Year Ended       Five Months       Seven Months
 Statement of          Sept. 30,      Ended Sept. 30,   Ended April 30,   
 Operations Data         2003            2002               2002   

  Revenue            $     60,177    $     30,723    $     51,273
  Operating costs
   and expenses:

   Cost of
    revenues
    (excluding
    depreciation,
    amortization,
    payroll and
    occupancy
    shown below)           19,990          10,458          22,123
   Selling,
    general and
    administrative         44,430          29,313          57,206
   Loss (gain)
    on impairment
    of assets                                               2,578
   Restructuring
    and other
    charges
    (credits)              (1,020)                         24,834
   Depreciation
    and
    amortization           15,523           6,060          28,115
                      ------------    ------------    ------------    

  Total operating
   costs and
   expenses                78,923          45,831         134,856
   Other operating
    income                    345               --              --
                      ------------    ------------    ------------    
 Loss from
   operations             (18,401)        (15,108)        (83,583)
   Interest and
    financing
    expense, net          (13,962)         (5,866)        (32,487)
   Other income
    (expense)               1,232            (157)           (509)
   Gain (loss) on
    debt discharge          6,023              --         427,066
   Reorganization
    items                      --              --          (7,762)
   Fresh start
    accounting
    adjustments                --              --        (148,569)
   Minority
    interest in
    subsidiary                 --              --           5,778
                      ------------    ------------    ------------    
  Income (loss)
   before income
   taxes                  (25,108)        (21,131)        159,934
  Income tax
   expense                    167              --              --
                      ------------    ------------    -----------    

  Net income
   (loss)            ($    25,275)   ($    21,131)   $    159,934
   Dividends and
    accretion on
    preferred stock            --              --    ($     3,178)
                      ------------    ------------    ------------    

  Net income
   (loss)
    attributable
    to common
    stockholders     ($    25,275)   ($    21,131)   $    156,756
  
  Earnings (loss)
   per common share:

  Basic earnings
   (loss) per share
   attributable to
   common
   stockholders      ($      1.54)   ($      1.28)         $ 3.96
                     ------------     ------------    ------------      
  Weighted average
   common shares
   outstanding -
   basic               16,460,000      16,460,000      39,618,856
                     ------------     ------------    ------------
  Diluted earnings
   (loss) per share
   attributable to
   common
    stockholders     ($      1.54)   ($      1.28)         $ 3.30
                         --------    ------------    ------------      
  Weighted average
   common shares
  outstanding -
   diluted             16,460,000      16,460,000      48,507,456
                    -------------    ------------    ------------    

About Globix:

Globix (http://www.globix.com) is a leading provider of managed Internet applications and infrastructure services for enterprises. Globix delivers and supports applications and services via its secure Data Centers, high-performance global Tier 1 IP backbone, and content delivery network. Through Aptegrity, its managed services group, Globix provides remote management of custom and off-the-shelf web-based applications. By managing such complex e-commerce, database, content management and customer relationship management software for its clients, Globix helps them to protect Internet revenue streams, reduce technology operating costs and operating risk, and improve user satisfaction. Globix's Clients are companies that use the Internet to provide business benefits and sustain a competitive advantage in their markets. Our Clients include operating divisions of Fortune 100 companies as well as mid-sized enterprises in a number of vertical markets including health care, media and publishing, technology and financial services. Globix and its subsidiaries have operations in New York, London, Santa Clara and Atlanta.

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; risks associated with making acquisitions; restrictions on our financial and operating flexibility due to the terms of our existing indebtedness and our high degree of leverage; 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.



            

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