Earnings Roundup: Digex beats estimates
Digex Inc. (Nasdaq: DIGX) reported exceeded guidance across revenue, EBITDA and earnings Thursday.
Shares in the high-end managed Web and application hosting service provider were down 3.66 to 43.13, or 8 percent.
Gross margin improved to 45 percent. The company lost $17.8 million in the third quarter before interest, taxes depreciation and amortization. The firm posted a net loss per share of 61 cents, excluding merger-related expenses. First Call was expecting a loss of 64 cents a share.
Revenue was $46.5 million, a 189 percent increase over the same period a year ago.
As previously announced in early September, WorldCom (Nasdaq: WCOM) has agreed to become Digex's new majority shareholder.
The company added that it remains comfortable with previously increased guidance for 2000 and 2001
Shares were down 3.68 to 32.44 Thursday morning.
Revenue increased 59 percent to $1.4 billion and operating cash flow increased 105 percent to $359 million compared to the year-ago quarter.
The company reported $44 million in positive consolidated operating income, domestic operating cash flow of $392 million and continued strong growth in operations.
Nextel's monthly cash flow per domestic subscriber is about $22 -- among the highest in the industry, the company said. Results included global subscriber additions of 681,400.
Consolidated operating cash flow (earnings before interest, taxes, depreciation and amortization) grew 105 percent to $359 million during the quarter as compared with $175 million during the third quarter 1999. The operating cash flow loss from Nextel International operations of $33 million was unchanged from second quarter.
The consolidated net loss was $236 million, down from $361 million in the year-ago quarter.
Net loss per share was 31 cents, compared to 55 cents a share a year ago. The third quarter consolidated net loss includes gains of about $21 million (or 3 cents a share) from the previously announced sales of assets to Nextel Partners and dissolution arrangements relating to the GSM system joint venture in Shanghai, China.
Consolidated capital expenditures were $806 million and include $666 million for domestic operations and $140 million for international operations.
Shares were up 0.15 to 8.97.
Revenues increased 67 percent to a record $11.3 million. Net loss narrowed to $4.5 million, or 37 cents a share, compared to a net loss for the year-ago period of $5.6 million, or 49 cents a share.
Sales in Asia accounted for more than 25 percent of total revenue, and OEM software sales accounted for approximately 14 percent of total revenue, CEO Elon Ganor in a statement. The company also said it has the necessary operating leverage to exceed its target of $1.00 earnings per share in year 2001.