Global Crossing Makes Recovery Strides

Global Crossing’s two years of refocused strategy seem to be paying off.

In a conference call with analysts on Monday, the carrier noted it is seeing increased profitability and revenue growth, attributable to its attention to IP products and immediately financially accretive acquisitions. Global Crossing has endured its share of battles, from enduring bankruptcy during telecom’s nuclear winter to facing an SEC investigation.

Thanks in part to a notable rise in IP traffic – up 126 percent over 2005 – revenue was up 16 percent in the third quarter of 2006 as compared to the second quarter of 2005; gross margins increased from 38 percent in the second quarter of 2005 to 41 percent in the third quarter of 2006 due to increased focus on enterprise customers globally, executives said.

Global Crossing earlier this year bought FiberNet Group Plc, a fiber backbone provider, for $94.6 million. The carrier also is buying Impsat, a data services provider in Latin America, for $336 million.

“Global Crossing continues to look like it is back on track,” said Jeff Kagan, a telecom industry analyst. “The company is well capitalized. They have recovered nicely since 2004.”

Global Crossing www.globalcrossing.com

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