The Miami-based provider of Internet infrastructure and managed services attributed the increased net loss primarily to the cost to start up the operating subsidiary, NAP of the Americas Inc., the fifth tier-one network access point ever developed. The NAP is a high-speed, commercial Internet switching service.
Announcement of the earnings report follows news of two recent developments that could bring a much-needed boost to second quarter earnings.
Progress Telecom, the telecommunications subsidiary of St. Petersburg-based Progress Energy Inc., and EPIK Communications Inc., the telecommunications subsidiary of Jacksonville, FL-based Florida East Coast Industries Inc., have connected revenue-producing circuits to NAP of the Americas.
"Our first quarter will be remembered as one of the most important in our company's 20- year history,'' Manuel D. Medina, Terremark chairman and CEO, says in a prepared statement. "The NAP of the Americas became operational on schedule and we have executed 36 multi-year, revenue-producing contracts with an aggregate value in excess of $37 million and obtained tier-one status."
The company reported a net loss of $7.98 million, or four cents a share, on total revenue of $5.69 million for the three months ended June 30, compared with a net loss of $5.5 million, or four cents per share, on total revenue of $1.82 million for the same period in 2000.
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