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Tech Industry

Globix gains on second quarter growth

    Globix Corp. (Nasdaq: GBIX) jumped 20 percent Friday after the company reported a hefty loss, but strong revenue growth for its second quarter.

    Shares in the company, which provides Internet services and connectivity for businesses, were up 3 15/16 to 22 11/16, still well below their 52-week high of 67 7/16.

    For the quarter, Globix posted revenue of $17.9 million, an increase of 153 percent over the $7.1 million in 1999's comparable quarter.

    Record revenue from the Internet Division increased 280 percent to $10.3 million, up from $2.7 million in last year's second quarter. Revenue from the Server Sales and Integration Division climbed 74 percent to $7.6 million for the quarter, up from $4.4 million over the year-ago quarter.

    The company reported EBITDA loss (loss before net interest expense, income taxes, depreciation and amortization) was $15.4 million, much wider than the $5.1 million for the same quarter last year.

    Net loss before extraordinary items was $29.6 million, or 85 cents a share, excluding the extraordinary loss of $17.6 million, or 51 cent a share, impact from an early extinguishment of debt. Net loss attributable to common stockholders was $48.9 million, or $1.41 a share, much wider than the loss of $9.6 million or 55 cents a per share for the same quarter last year. First Call had expected a loss of a dollar a share.

    Globix also announced after Thursday's bell that as part of its recently announced network expansion plans, it has purchased additional network capacity from several vendors.

    Globix competes with UUNet,a subsidiary of MCI Worldcom (Nasdaq: WCOM), PSINet (Nasdaq: PSIX), and Concentric Network (Nasdaq: CNCX).