As it looks for ways to stem its widening losses, Web and application hosting firm Globix Corp.announced a top-level management shakeup with Peter Herzig replacing Marc Bell in the CEO chair.
Additionally, Globix said vice president Marc Jaffe would move up to fill Herzig’s COO slot. Bell retains his post as chairman of the board of directors.
Bell said the changes “allow me more time to focus on our financing opportunities.”
News of the chair-swapping at Globix came as the company announced that its net losses in the second quarter widened by almost 20 percent to $37.7 million (97 cents per share).
Globix said revenues increased by 23 percent to $26.2 million in the quarter, up from $21.4 raked in during the second quarter of 2000. Shares of Globix were trading at $1.45 in Thursday’s mid-morning session on the Nasdaq.
The company, which provides co-location, Internet access and other hosting services, said it scored a deal to host radio station Web sites for Clear Channel Interactive. Globix said it signed approximately $25 million in contracts during the quarter.
Separately, Globix said it would tie its Internet data centers into optical networks run by Mass.-based GiantLoop. Terms were not disclosed.
The deal allows Globix to boost bandwidth, and offer new services such as mirroring, backup data replication and content delivery.
For GiantLoop, the deal is one of the most significant in its 15-month history. To date, the privately held company has raised $160 million in venture capital, the lion’s share of which has gone for product development.