360networks Announces Record Fourth Quarter and 2000 Revenue

VANCOUVER, B.C., Canada, March 5 -- 360networks announced record fourth quarter revenue in 2000 of $158 million, an increase of 26 percent over $125 million in the fourth quarter of 1999. Revenue for the year ended December 31, 2000 climbed to $511 million, an increase of 42 percent compared with $360 million in 1999.
   Cash revenue reached $217 million in the fourth quarter of 2000 compared with $135 million in the fourth quarter of 1999. Cash revenue was $644 million for the year ended December 31, 2000 compared with $370 million in 1999. EBITDA was $10 million in the fourth quarter of 2000, compared with $29 million in the fourth quarter of 1999 due to further investments in product development and the global sales force. EBITDA grew 6 percent to $92 million for the year ended December 31, 2000, compared with $87 million in 1999. Adjusted EBITDA in the fourth quarter of 2000 climbed to $96 million, an increase of 96 percent over $49 million in the fourth quarter of 1999. Adjusted EBITDA rose to $255 million for the year ended December 31, 2000, an increase of 138 percent over $107 million in 1999. Adjusted EBITDA is EBITDA adjusted to reflect changes in deferred revenue and non-cash cost of sales.
   360networks believes cash revenue and adjusted EBITDA are the most appropriate metrics to measure the performance of emerging network service providers as they track a company's success in obtaining sales contracts and delivering services to customers. Gross profit in the fourth quarter of 2000 was $48 million (30 percent of revenue), compared with $39 million (31 percent of revenue) for the fourth quarter of 1999. Gross profit for the year totaled $186 million (36 percent of revenue), up from $109 million (30 percent of revenue) in 1999.
   Selling, general and administration expenses increased to $38 million (24 percent of revenue) in the fourth quarter of 2000 compared to $10 million (8 percent of revenue) in the fourth quarter of 1999. For the year ended December 31, 2000, selling, general and administration expenses totaled $94 million (18 percent of revenue), compared with $22 million (6 percent of revenue) in 1999. 360networks' selling, general and administration expenses continue to compare favorably with expenses of industry peers.
   Net loss was $155 million in the fourth quarter of 2000 (20 cents per share) and $355 million (55 cents per share) for the year ended December 31, 2000. This compares with net income of $11 million in the fourth quarter of 1999 and net income of $24 million for the year ended December 31, 1999.