RealTime IT News

PSINet Buys Australian ISP, Reports Earnings

Chalk up another ISP purchase for PSINet Inc. The company Tuesday acquired Australian ISP Zircon Systems Pty Ltd., marking its presence in 22 countries.

PSINet (PSIX) says the acquisition also represents its entrance into 17 of the top 20 world markets, with Australia also ranking as the eighth largest telecom market.

Business-focused Zircon Systems offers dedicated and dial-up connectivity, and Web hosting capability. The company has points of presence (POPs) in Brisbane, Melbourne, Adelaide and Perth. As with PSINet's ever-expanding population of purchases, it will soon access the entire portfolio of PSINet services.

Terms of the agreements were not disclosed.

"Australia is a critical market for PSINet, and is an important link to the Asia Pacific region, an increasingly important transit route," said Harold Wills, PSINet's president and COO.

PSINet had not made an acquisition for nearly a month in its hectic pace of ISP accumulation. The company last month bought seven ISPs in the US, Canada, Brazil, Spain and Hong Kong.

The company released its third quarter earnings Tuesday, reporting revenues up 108 percent to $140.6 million and beating Street estimates by four cents.

PSINet also listed its ISP purchases for the year, with two acquisitions in the US and Canada, seven in Europe, two in Asia-Pacific, and seven in Latin America.

The company included the Zircon acquisition as one of three post-quarter buys.

"Today, PSINet has over 1,000 sales and marketing people in 22 countries on five continents connected by a 3.2 terabit-capable network," said William L. Schrader, PSINet's chairman and CEO.

"As we continue to solidify a leading position in the world's top 20 telecommunications markets, our global customer base has grown to about 80,000 business accounts and over 1.2 million carrier customers."