Nov, 2002 : Digex Reports Third Quarter 2002 Results
📅 - Managed Web and application hosting service provider Digex Incorporated (digex.com) announced its results for the third quarter of 2002 this week, demonstrating declining revenues and a loss for the period.
Revenue for the quarter totaled $43.2 million, compared with $48.7 million in the previous quarter and $52.3 million a year ago. EBITDA for the quarter totaled $4.5 million and net loss totaled $37.7 million, or $0.58 per share.
"We are pleased with our progress toward financial independence as reflected in this quarter's results," said George Kerns, president and CEO of Digex. "De spite the $3.6 million in billings for the first three weeks of July that we were unable to recognize this quarter as a result of WorldCom's bankruptcy petition, we posted improving gross margins, positive EBITDA and improving net losses."
According to Digex, the bankruptcy of shareholder and customer WorldCom Inc. has had an impact on Digex's finances as the company works toward financial independence.
"We ended the quarter with $16.0 million cash and equivalents on hand, up from $4.8 million last quarter. Our cash borrowings this quarter totaled $15.0 million, which increased from $9 million last quarter due to the pre-petition receivables that WorldCom owes Digex" says Scott Zimmerman, chief financial officer of Digex. "Had WorldCom been in a position to pay those re-seller receivables Digex would not have required any borrowings in the quarter."
Revenue for the quarter totaled $43.2 million, compared with $48.7 million in the previous quarter and $52.3 million a year ago. EBITDA for the quarter totaled $4.5 million and net loss totaled $37.7 million, or $0.58 per share.
"We are pleased with our progress toward financial independence as reflected in this quarter's results," said George Kerns, president and CEO of Digex. "De spite the $3.6 million in billings for the first three weeks of July that we were unable to recognize this quarter as a result of WorldCom's bankruptcy petition, we posted improving gross margins, positive EBITDA and improving net losses."
According to Digex, the bankruptcy of shareholder and customer WorldCom Inc. has had an impact on Digex's finances as the company works toward financial independence.
"We ended the quarter with $16.0 million cash and equivalents on hand, up from $4.8 million last quarter. Our cash borrowings this quarter totaled $15.0 million, which increased from $9 million last quarter due to the pre-petition receivables that WorldCom owes Digex" says Scott Zimmerman, chief financial officer of Digex. "Had WorldCom been in a position to pay those re-seller receivables Digex would not have required any borrowings in the quarter."
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