Global Crossing Reports 43% Annual Growth in Commercial Data [...]
Global Crossing Reports 43% Annual Growth in Commercial Data Revenues Robert B. Marks
📅 - Communications firm Global Crossing released its third quarter financial statement Tuesday, reporting a 43% growth in commercial data revenues. Additionally, the company said data products continued to represent more than 30% of their telecommunications revenues.
The company also said commercial revenues were up by 12% from a year ago, due to the successful penetration of the enterprise market. This is expected to increase, the company said, as it has implemented a strategy to acquire new customers and migrate them to more advanced services like VPNs.
Global Crossing also said it had taken a hit through its investment in the now-bankrupt Exodus Communications, which is expected to cause a pre-tax write-down of $2,6 billion. While the company has said that this will have no impact on cash flow or liquidity, it is implementing cost-cutting measures in the hopes that they will save $500 million by the end of next year.
"Clearly, the downturn in the macro-economic environment had an impact on our business during the quarter, particularly within the IRU market," said John Legere, CEO of Global Crossing. "However, certain segments continue to demonstrate strong growth, which is in line with our new inter-city business focus."
The financial report did not cover Global Marine Systems or IPC Trading Systems, both of which are expected to be sold shortly. As a result, Global Crossing is considering them to be separate businesses.
Global Crossing Ltd. is a large business specializing in telecommunications solutions over an integrated global IP based network, reaching 27 countries and 200 cities. The company operates in the Americas and Europe, while a subsidiary, Asia Global Crossing, provides services in Asia.
The company also said commercial revenues were up by 12% from a year ago, due to the successful penetration of the enterprise market. This is expected to increase, the company said, as it has implemented a strategy to acquire new customers and migrate them to more advanced services like VPNs.
Global Crossing also said it had taken a hit through its investment in the now-bankrupt Exodus Communications, which is expected to cause a pre-tax write-down of $2,6 billion. While the company has said that this will have no impact on cash flow or liquidity, it is implementing cost-cutting measures in the hopes that they will save $500 million by the end of next year.
"Clearly, the downturn in the macro-economic environment had an impact on our business during the quarter, particularly within the IRU market," said John Legere, CEO of Global Crossing. "However, certain segments continue to demonstrate strong growth, which is in line with our new inter-city business focus."
The financial report did not cover Global Marine Systems or IPC Trading Systems, both of which are expected to be sold shortly. As a result, Global Crossing is considering them to be separate businesses.
Global Crossing Ltd. is a large business specializing in telecommunications solutions over an integrated global IP based network, reaching 27 countries and 200 cities. The company operates in the Americas and Europe, while a subsidiary, Asia Global Crossing, provides services in Asia.
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