Revenues for the quarter were $523.2 million, compared to $629.2 million for the comparable quarter in 1999. This reduction of 17 percent reflects TyCom's continued transition from a supplier of undersea systems to also being an owner-supplier of the TyCom Global Network (TGN). During this fiscal year a portion of manufacturing capacity is dedicated to the build out of the TGN.
"TyCom is coming off another great quarter," said L. Dennis Kozlowski, Executive Chairman of TyCom and Chairman and CEO of Tyco International. "We believe the business is well positioned to provide strong earnings driven by the supply of third-party systems and sales of capacity on the TGN."
"This is a great start for the year and a solid foundation for continued strong performance," said Neil Garvey, President and CEO of TyCom. "We have recorded outstanding results. Cash flows from our $2.9 billion backlog, combined with our available cash of $2.0 billion, will continue to provide the funding for the build out of the TGN. As previously reported, we are pleased to have entered into agreements to supply capacity on both the transpacific and transatlantic routes, and construction activities are proceeding on schedule," he added.
TyCom also announced that it continues to move forward with deployment of the TyCom Global Network. In recent months landing licenses have been received in the U.S. and Europe. Construction has begun on the global network management center in the U.S., as well as regional operations centers in London and Guam and cable stations elsewhere in the world. Dark fiber has been acquired in the Eurotunnel to connect London and Paris, and agreements are being put in place for all required backhaul to support the transatlantic segment. Manufacturing of optical equipment and cable is proceeding at TyCom's three U.S. production facilities, and cable laying has begun across the Atlantic.
The first phase of the TyCom Global Network is designed to offer multi-terabit capacity upgradeable to a maximum of 7.68 terabits per second, span approximately 70,000 undersea kilometers and connect 30 major cities around the globe. TyCom plans to design and manufacture the undersea cable, optical amplifiers and terminal equipment, and plans to design, build and equip the global and regional network management centers, TelExchange centers and cable stations along the route. TyCom's own fleet of cable ships, one of the world's largest, will install and maintain the system.
The Company will discuss first quarter results on a conference call for investors today at 10:30 am EST. The conference call can be accessed at the following website www.tycomltd.com.
ABOUT TYCOM LTD.
TyCom Ltd. (NYSE: TCM; BSX: TCM), with fiscal 2000 revenues of $2.54 billion, is one of the world's largest providers of advanced broadband communications capacity, systems and services. TyCom is a leading fully integrated supplier of transoceanic fiber optic systems, is the recognized world leader in undersea technology development and application, and operates one of the world's largest fleets of cable ships. To meet growing demand, the Company is also deploying and selling capacity on the TyCom Global Network. TyCom's parent company is Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC). For more information on TyCom, visit www.tycomltd.com.
ABOUT TYCO INTERNATIONAL LTD.
Tyco International Ltd. is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services, and the world's largest manufacturer of flow control valves. Tyco also holds strong leadership positions in disposable medical products, diagnostic imaging, bulk pharmaceuticals, wound closure, plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2000 sales of approximately $28.9 billion.
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FORWARD LOOKING INFORMATION
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the timing of construction and the successful operation of the TyCom Global Network, changes in telecommunications technology, changes in demand for bandwidth capacity, receipt of necessary licenses and regulatory approvals, competitive factors in the undersea fiber optics cable industry and in the telecommunications industry generally, overall economic and business conditions, changes in the regulatory environment, the outcome of litigation, risks associated with conducting business in international markets, and other risks described in our Form S-1 registration statement (as amended) and our Annual Report on Form 10-K filed with the SEC. TyCom is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.