MIAMI-Terremark Worldwide Inc., still betting the telecommunications industry will recover over the next few years, lost $33.9 million in the first nine months of 2001, compared to a loss of $32.2 million in the same 2000 period.
For the third quarter alone, ending Dec. 31, 2001, the locally based firm had a net loss of $12.6 million or six cents per weighted average common share. But that was an improvement from the same period in 2000 when Terremark lost $15 million or seven cents per share.
Consolidated revenue for the quarter was $1.7 million, down sharply from $14.5 million in the same 2000 period. Consolidated operating revenue for the first nine months of 2001 was $11.2 million versus $24.2 million in the 2000 period.
The $13.5 million, third-quarter revenue decrease was attributed to non-core businesses and “other activities which the company is exiting,” Terremark chairman/CEO Manuel D. Medina says in a prepared statement.
The bleak numbers, however, aren't discouraging Medina. He cites the 72% Data Center revenue growth from the NAP of the Americas center to $700,000 in third quarter, up from $400,000 in the same 2000 period.
“During the quarter, the company added new customers and significantly expanded its managed services portfolio,” Medina says.
Terremark's Nap of the Americas now has 61 customers representing an aggregate contract value of $50 million or a 17% increase over the past three months, the company's chief executive says.
“Despite a very challenging environment in the telecommunications industry, Terremark continues on the path towards increasing shareholder value and achieving break-even EPITDA,” Medina says.
For the company overall, the loss before interest, taxes, depreciation and amortization improved to $6.6 million for the three months ended Dec. 31, compared to a loss of $6.8 million in the comparable 2000 period.
But cash on hand is getting low, the company's balance sheets show. Cash and cash equivalents at Dec. 31, 2001 amounted to $1.92 million versus $5.57 million on March 31, 2001.
The company's total assets are shown at $101.6 million, up from $78 million on March 31, 2001. But Terremark's debt load is also increasing. Total liabilities stood at $123.2 million on Dec. 31, up from $66.9 million on March 31.
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