IMPSAT reports good Q1, despite net loss

By Hector D. Calabia

IDG News Service, Buenos Aires Bureau

BUENOS AIRES –

IMPSAT Fiber Networks Inc. Thursday released its earnings report for its fiscal first quarter, reporting that the company got its EBITDA out of the red, at US$4.3 million, compared to the negative EBITDA of 4.8 million recorded in the fourth quarter of 2000. There was also a strong increase in revenue, although net earnings were still negative for the quarter.

 

IMPSAT (NASDAQ:IMPT) had net revenue of $88.7 million, an increase of 51 per cent over the same quarter of 2000, and up 12 per cent from the previous quarter. In the first quarter , the financial report included non-recurrent revenues of $6.6 million related to the development of broadband network infrastructure for other carriers.

 

The company is at a transition stage from being mainly a satellite capacity wholesaler to being a major provider of broadband telecommunication services using submarine fiber cables, that have much higher throughput and reliability. According to the statement, the higher EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter represents this, as it reflects the revenue originating from the company's pan-regional broadband network, that went fully operational on the last quarter of 2000.

 

However, IMPSAT reported a net loss for its common stock of 68.3 million, an increase of $39.2 million, or 134.8 per cent compared to the same period in 2000. The loss per share for the quarter was $0.75 compared to $0.36 per share year-on-year.

 

This is $0.4 cent more than the consensus estimate of two analysts polled by Thomson Financial/First Call, of Boston, of $0.71 cents per share.

 

Impsat Fiber Networks Inc. provides integrated data, Internet and voice broadband telecommunication services for Latin America. The company has operations in the U.S., Argentina, Colombia, Venezuela, Ecuador, México, Brazil, Chile and Perú.

 

Impsat Fiber Networks Inc. in Buenos Aires can be contacted at +54 11 4363-3700, or at http://www.impsat.com.

 

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