Reston, Virginia – (The Hosting News) – August 21, 2007 – Web hosting, Internet and telecommunications services parent company, XO Communications, reported its second quarter 2007 financial and operational results, including revenue of $352.9 million, $21.8 million of adjusted EBITDA and a net loss of $36.8 million.
XOH operates two business segments, XO Communications, LLC (XOC), its nationwide wireline telecommunications business, and Nextlink Wireless, Inc. (Nextlink), its wireless business.
Highlights of the financial report include: — Total Sequential Revenue Grew 1% to $352.9 Million — Data and IP Services Revenue Up 18%, Core Services Revenue Up 5% Compared to Same Period Last Year — Total Sales Bookings Up 12% Compared to Same Period Last Year — Strong Demand for High-Capacity Inter-City Network Transport Services with Number of Orders Up 483% Compared to Same Period Last Year — Continued Network Investments with Recently Announced 800/Gbps Capacity Upgrade to Meet Current and Future Customer Demand for High-Capacity Services — Nextlink Expansion to 37 Operating Markets, Creating Nation’s Largest Broadband Fixed Wireless Access Network
Carl Grivner, Chief Executive Officer of XO Holdings remarked, ”Overall sales performance in the second quarter was our best in two years, and our strategic network, customer and service initiatives are delivering improved margins and revenue growth in IP-based services for enterprises and wholesale services for carriers and service providers. Revenue from XOptions Flex, our flagship VoIP offering for small and medium-sized businesses, grew for the seventh consecutive quarter. We are also seeing revenue growth for our enterprise-class data and IP services. Our network investments have positioned XO Communications as a new, major player in the long haul network services market with sales orders for these services up significantly. And we have further expanded our broadband wireless capabilities, with Nextlink operating the nation’s largest broadband fixed wireless network. We have good momentum heading into the second half of the year, and our unique combination of metro and nationwide fiber networks and broadband wireless assets positions us well for the long term.”
Other financial report highlights include: — Number of sales orders for high-capacity inter-city network transport services increased 483% compared to same period last year. — Revenue from XOptions Flex, the Company’s flagship business VoIP service, grew 131% to $18 million compared with $7.8 million in the same period last year. Surpassed 10,000 XOptions Flex customers in the second quarter 2007. — Revenue from the Company’s carrier VoIP services, which include VoIP Origination and VoIP Termination, grew 4% to $7.5 million compared to $7.2 million in the same period last year. — Wholesale network transport business signed with 65 new carrier, content provider and Internet-centric customers in the second quarter 2007. Announced agreements to provide wholesale network services to China Netcom USA, GameRail, NTT America and PCCW Global. — Continued investments in nationwide network and expanding capacity to an additional 800 Gbps on major coast-to-coast network routes. — Continued to expand metro Ethernet services footprint through the deployment of Ethernet over copper technology and by leveraging Nextlink broadband wireless capabilities. Signed agreement with Hatteras Networks for deployment of Ethernet over copper technology in 60 major metropolitan markets. Nextlink Highlights — Recently announced expansion to 37 markets. — XO Communications actively selling Nextlink broadband wireless access services in 36 markets. — Expanded channel partner program to more than 10 regional and nationwide resellers, including XO Communications.
XO Communications, a subsidiary of XO Holdings, Inc., is a provider of national and local telecommunications services to businesses, large enterprises and communications service providers. XO offers a portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and web hosting services, as well as bundled voice and Internet solutions. XO provides these services over an advanced, nationwide facilities-based IP network and serves 75 metropolitan markets across the United States.
To learn more about XO Communications, please visit: www.xo.com.