RealTime IT News

Digex Reports Positive Results For 2001

Digex, Inc. , the Laurel, Md.-based managed hosting provider (MSP), yesterday announced revenues of $55.2 million for the quarter-ended December 31, 2001, compared with $57.9 million a year ago.

Full-year 2001 revenue totaled $214.4 million, a 28 percent increase over 2000 revenues of $168.1 million. Managed servers totaled 3,588 with average monthly revenue per server of $4,414.

Gross margin in the quarter totaled 49 percent, with full-year gross margin at 44 percent. EBITDA losses narrowed to $3.6 million in the quarter with full-year EBITDA losses totaling $46.3 million.

Net loss available to common stockholders for the quarter totaled $46.7 million, or $0.73 per share while full-year net loss was $192.5 million, or $3.00 per share.

"Through 2001, Digex continued its strategic focus in the areas of innovation, growth and leadership as we enable our clients to move business computing and content to the Internet," said Mark Shull, president and CEO of Digex.

"Together with WorldCom, we believe to be better positioned than ever to meet the growing market demands going into 2002," he added.

Both firms added 80 new customers in the quarter, up 54 percent over new business in the fourth quarter of 2000.

"Continuing with our strength in the enterprise market, we ended the year with 78 percent of our revenue coming from that segment," says John Callari, Digex's senior vice president of sales.

Among the firm's new customers were: American Honda, Arby's, a subsidiary of Triarc Companies, Inc., Bank of America, Club Quarters, Comcast Cable, Dayport, eMachines, FNB Corporation and InfoVista,

Customers that upgraded or renewed their services with Digex included; American Home Products, Bed Bath & Beyond, Ford Motor Company, J. Crew, Kawasaki Motors Corp., The Metropolitan Museum of Art, Nestle USA, Phillip Morris Management Corp. and Publishers Clearing House.

"The fourth quarter closes out a strong year for Digex with continued success in our development efforts and solution offerings. One of our key accomplishments is the joint launch with WorldCom of Managed Express Hosting targeted at mid-size businesses," said Rebecca Ward, president of marketing, product management and engineering at Digex."

"This is a significant milestone for us as it marks the first real service initiative developed jointly by WorldCom and Digex. We worked together to determine customer requirements, service packages and price points, exemplifying the value our alliance."