The company reported Proportionate Cash Revenue of $112.3 million in the fourth quarter, an increase of 95 percent over the third quarter. Proportionate Cash Revenue reflects Asia Global Crossing's ownership percentage of the Cash Revenue of its subsidiaries and joint ventures. Proportionate Adjusted EBITDA, which serves as a measure of operating performance, was $49.2 million for the quarter, an increase of 447 percent over the third quarter.
Reported Revenue was $22.3 million in the fourth quarter, an increase of $0.5 million over the third quarter. Net loss was $50.4 million, or $0.09 per share, for the quarter, compared to a net loss of $38.3 million, or $0.08 per share, for the previous quarter after restatement.
``Demand for Internet connectivity and telecommunications services is growing faster in Asia than anywhere else in the world,'' said John Legere, president and chief executive officer of Asia Global Crossing. ``Asia Global Crossing is meeting this demand by providing the telecommunications infrastructure and services linking the countries in Asia to each other and to the rest of the world.''
Legere continued, ``In 2000, our first full year of operations, we made considerable progress toward linking all of the major business centers in Asia with subsea and terrestrial cables. With the exception of Malaysia where we are currently in discussions, we now have signed joint venture agreements with significant partners for all the necessary subsea and terrestrial connections for our pan-Asian network. The completion of this network promises to deliver a variety of advanced telecommunications services to meet rapidly growing bandwidth demand in Asia.''
For the year, Proportionate Cash Revenue was $321.8 million and Proportionate Adjusted EBITDA was $135.9 million.
Reported Revenue was $153.6 million for the year. Net loss was $105.2 million, or $0.21 per share, before restatement of the first through third quarters to reflect
the contribution of the company's joint ventures, Global Access Limited (GAL) and Hutchison Global Crossing (HGC), at the time of Asia Global Crossing's IPO. After restatement, net loss was $146.9 million, or $0.29 per share.
``To offer next-generation city-to-city telecommunications solutions within Asia and from Asia to the rest of the world, it is essential to succeed in four areas: financing, system build-out, joint ventures, and customer acquisition. In 2000, we excelled in these areas, solidifying Asia Global Crossing's first-mover advantage. Asia Global Crossing's goal in 2001 is to capitalize on these successes and use our world-class network assets and partner relationships to continue generating strong financial results and enhance shareholder value,'' said Legere.
Financing
With the proceeds of the IPO and a high yield bond offering, as well as cash from operations, Asia Global Crossing's current business plan remains fully funded. Cash on hand at the year end was $851.0 million, including $145.9 million which is restricted for use on Pacific Crossing.
System Build-out
Asia Global Crossing continues to extend the Global Crossing network throughout Asia, on schedule and on budget. During the fourth quarter, the company completed the Pacific Crossing ring, making this system the only independent trans-Pacific cable currently carrying customer traffic and generating revenue. Also during the quarter, the company landed the Japan-Hong Kong segment of East Asia Crossing, which enables customers in Hong Kong to connect seamlessly with the Global Crossing Network, and commenced construction of the phase of East Asia Crossing that connects Singapore, the Philippines, and Malaysia ahead of schedule. With the achievement of these milestones, all of the company's subsea systems are either operational, contracted for, or under construction. In addition, terrestrial networks are in service in Japan and Hong Kong, and are being planned and constructed in Taiwan and Korea.
Joint Ventures
Asia Global Crossing has finalized joint venture agreements in all of the countries that East Asia Crossing will connect except Malaysia. Asia Global Crossing's strategy is to partner with leading local telecommunications companies in order to obtain the necessary licenses for cable landing and backhaul connectivity, as well as to benefit from each partner's market presence, local expertise, and customer base. Recently, Asia Global Crossing completed the formation of Dacom Crossing, which is a joint venture in Korea with Dacom, and Digitel Crossing, which is a joint venture in the Philippines among Asia Global Crossing, Digitel, and BI Group. In Singapore, a joint venture agreement with Singapore
Technologies Telemedia has been finalized. In Taiwan, Asia Global Crossing Taiwan obtained approval for the first-ever international submarine cable circuit operators license, facilitating the landing of East Asia Crossing. In Malaysia, active discussions continue with significant telecommunications companies.
Customer Acquisition
The majority of the company's revenue has been generated by large capacity sales to customers that need connectivity into and within the Asia Pacific region. Capacity customers for the year include Cable & Wireless, Deutsche Telekom, Exodus, KDD, Qwest, Teleglobe, and others.
In addition to capacity sales, IP services began generating revenue earlier than anticipated. To meet the demand of ISP customers in Japan, the IP backbone within Pacific Crossing dedicated to IP Transit service was upgraded to 2.5Gbps during the quarter, months sooner than planned. IP services customers that entered into contracts during the year include @Home, ASAHInet, Fujitsu, NEC, NTT-ME, Sony, Titus Communications, and others. While IP services are not yet a major contributor to total revenue, Asia Global Crossing expects significant growth in services revenue in 2001.
About Asia Global Crossing
Asia Global Crossing (Nasdaq: AGCX), a public company whose largest shareholders include Global Crossing (NYSE: GX ), Softbank (Tokyo Stock Exchange: 9984), and Microsoft (Nasdaq: MSFT), provides the Asia Pacific region with a full range of integrated telecommunications and IP services. Through a combination of undersea cables, terrestrial networks, city fiber rings and complex web hosting data centers, Asia Global Crossing is building one of the first truly pan-Asian networks, which, in combination with the worldwide Global Crossing Network, will provide the Asia Pacific region with seamless access to major business centers worldwide. As part of its strategy to provide city-to-city connectivity, Asia Global Crossing partners with leading companies in each country it connects to provide backhaul networks.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States,
Asia, and other countries and regions; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. One is cautioned not to put undue reliance on such forward- looking statements, which speak only as of the date of this press release. Asia Global Crossing expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION
Investor contact: Jensen Chow (Los Angeles CA), +1 310 385 5283, jensen.chow@asiaglobalcrossing.com.
Press contact: Madelyn Smith (Los Angeles CA), +1 310 385 3816, madelyn.smith@asiaglobalcrossing.com.
For additional tables related to Asia Global Crossing financial results, please visit the Asia Global Crossing web site at http://www.asiaglobalcrossing.com/media/press_releases/pr_021201.htm