May, 2002 : Global Crossing Says Quarterly Performance on Target
📅 - Bankrupt communications firm Global Crossing (globalcrossing.com) said yesterday that is first quarter performance was in line with targets it had presented to creditors.
The company also said it had signed approximately 475 new service agreements during the quarter, representing both new business and renewals. New clients include Convergia, a carrier customer announced earlier in the week, and FAPESP, a research network based in Brazil that chose Global Crossing to provide an IP VPN solution between Brazil and the United States.
"We said we would aggressively restructure costs and cash management and we did so - without compromising service or quality," said John Legere, Global Crossing CEO.
Global Crossing said it had approximately $894 million in cash as of the end of March, including $485 million in unrestricted cash, $335 million in restricted cash and $74 million from Global Marine, one of its units which is up for sale.
According to reports, Global Crossing also burned through almost $140 million in March to keep its fiber optic network operational and customer churn down. The company's network spans 27 countries and 200 international cities.
Global Crossing also said it had closed 181 office locations, and expected 217 to close by year-end. In order to continue streamline operations and cut costs, 2,000 employees were also laid off during the quarter.
"We realize this has been a painful time for former employees, and a challenging time for those employees who remain in place and continue to work harder than ever to turn our business around," Legere said.
Global Crossing filed for bankruptcy protection in late January, and numerous suitors are reportedly considering purchasing the company, though the company has only received one formal offer to date.
The company also said it had signed approximately 475 new service agreements during the quarter, representing both new business and renewals. New clients include Convergia, a carrier customer announced earlier in the week, and FAPESP, a research network based in Brazil that chose Global Crossing to provide an IP VPN solution between Brazil and the United States.
"We said we would aggressively restructure costs and cash management and we did so - without compromising service or quality," said John Legere, Global Crossing CEO.
Global Crossing said it had approximately $894 million in cash as of the end of March, including $485 million in unrestricted cash, $335 million in restricted cash and $74 million from Global Marine, one of its units which is up for sale.
According to reports, Global Crossing also burned through almost $140 million in March to keep its fiber optic network operational and customer churn down. The company's network spans 27 countries and 200 international cities.
Global Crossing also said it had closed 181 office locations, and expected 217 to close by year-end. In order to continue streamline operations and cut costs, 2,000 employees were also laid off during the quarter.
"We realize this has been a painful time for former employees, and a challenging time for those employees who remain in place and continue to work harder than ever to turn our business around," Legere said.
Global Crossing filed for bankruptcy protection in late January, and numerous suitors are reportedly considering purchasing the company, though the company has only received one formal offer to date.
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URL source: http://www.thewhir.com/marketwatch/gc050902.cfm
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