The Miami-based provider of Internet infrastructure and managed services reported Monday a net loss of $104 million, or 55 cents a share, on total operating revenue of $40.2 million for the 12 months ended March 31, compared with a net loss of $6 million, or nine cents a share, on total operating revenue of $15.4 million for the same period in 2000.
Shareholders reacted passively to the losses, with shares closing down 11 cents at 94 cents on volume of 160,400, just 44 cents of the 52-week low of 50 cents a share. The issue has traded as high as $5 a share over the same time period.
Operating expenses for the year increased to $56.2 million, up from $20.4 million for the same period last year. Construction contract expenses accounted for about $20.4 million of the total, with general and administrative costs accounting for another $19.9 million.
Much of those costs figured in the startup of the NAP of the Americas and development of the Technology Center of the Americas, a 700,000-sf facility that serves a variety of high-tech tenants.
The NAP of the Americas subsidiary is one of only five tier-one network access points--a primary channel for Internet traffic that routes traffic from Central and South America and the Caribbean to North America, Asia and Europe.
Such operating costs, and the subsequent losses, come as the company continues a long-term transition to a provider of Internet infrastructure services from a commercial real estate services company.
"This past fiscal year was both a year of major progress and a year of significant transformation for Terremark," Manuel D. Medina, Terremark chairman and chief executive officer, says in a prepared statement. "The NAP of the Americas has positioned us well for both domestic and international growth. Having 34 customer contracts signed with multinational industry leaders in their respective fields, and continuing enhancements to our sales and technology infrastructure, we believe fiscal 2002 should represent the best in our company's history."
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