International IP connectivity solutions provider Global Crossing (Nasdaq: GLBC) saw "healthy demand" in Latin America during the second quarter of the year, with particularly intense activity in Brazil, company CEO John Legere said during a conference call with investors."We're also seeing strong demand in our data center business, which primarily benefits our GC Impsat segment as 14 of our 17 data centers are in Latin America," the executive added.
However, despite the demand in Latin America, the company posted a global net loss of US$47mn in the second quarter of the year, compared to a net profit of US$27mn in the same period in 2009, according to the company's earnings statement, "due to unfavorable foreign exchange impacts and, to a lesser degree, an increase in interest expense."
Global Crossing generated revenues of US$630mn in the second quarter, basically flat on the US$633mn posted in the same period last year.
Revenue from the company's "invest and grow" category - the business focused on serving global enterprises and carrier customers, excluding wholesale voice - increased 3% year-over-year to US$555mn.
The GC Impsat unit, through which Global Crossing operates in Latin American markets, generated revenues of US$137mn in the quarter, compared to US$125mn in the year-ago period.
GC Impsat generated a net profit of US$10mn in the period, compared to a net profit of US$18mn in 2Q09.
Legere said that Global Crossing also expanded infrastructure capacity during Q2. "We added capacity on our North American and European terrestrial networks and our subsea networks in the Atlantic and Latin America," he said.
Global Crossing expects revenues from its "invest and grow" category to be US$2.30bn-2.38bn for this year.
The company offers a full range of data, voice and video products to approximately 700 carriers, mobile operators and ISPs. It delivers services to more than 700 cities in over 70 countries.
By Juan Pedro Tomás
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