Global Crossing Ltd. (
Q4 2010 Earnings Conference Call
February 23, 2011, 9:00 am ET
Mark Gottlieb – IR
John Legere – CEO
John Kritzmacher – EVP and CFO
Dave Carey – EVP and Chief Marketing Officer
Donna Jaegers – D.A. Davidson
Previous Statements by GLBC
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» Global Crossing Q4 2009 (Qtr End 12/31/2009) Earnings Call Transcript
Ladies and gentlemen, thank you for standing by. Welcome to the Global Crossing fourth quarter and full year 2010 earnings conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. (Operator instructions) As a reminder, this conference is being recorded today, Wednesday, February 23, 2011. I would now like to turn the conference over to Mr. Mark Gottlieb, Senior Vice President, Investor Relations. Please go ahead.
Thank you, Tamika. Good morning, everyone, and thank you for joining us today for the fourth quarter and full year 2010 earnings call. John Legere, our Chief Executive Officer, and, John Kritzmacher, our Chief Financial Officer, are here with us today. They will each share their comments, after which we will open the call for some questions.
Presentation slides can be viewed online to help follow our prepared remarks today. They are available via webcast, which you can access through our Investor Relations site if you go to www.globalcrossing.com, access the Investor site and follow the links to the webcast.
Please note that the financial results discussed on this call are unaudited results and are subject to adjustments in our final audited results to be included in our annual report on Form 10-K. Next I’d like to remind everyone that statements made herein that are not historical financial results are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934.
Our actual results could differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements are contained in our reports filed or furnished to the Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q.
We are not obligated to publicly update or revise these forward-looking statements to reflect future events or developments except as required by law. Information contained herein is in summary format only and is qualified in its entirety by reference to the financial statements and other information contained in our forms 10-K and 10-Q.
We refer you to our financial press releases posted at www.globalcrossing.com, which include explanations of and reconciliations with the closest GAAP financial measures for our non-GAAP measures, such as operating income before D&A, free cash flow, and constant currency measures.
With that, I’ll turn the call over to John Legere.
Okay. Thank you, Mark. Good morning, good afternoon, and good evening, and thank you, everybody, for joining us. 2010 was a year of consistent demonstrated progress on our strategy and on our operational financial performance. We invested in our global assets, added to the depth and breadth of our product portfolio, improved our productivity and efficiently allocated our capital. This contributed to four quarters of sequential growth in our strategic invest and grow revenue, improved revenue mix, higher margins, as well as our third consecutive year of positive free cash flow.
The momentum in our business positions us well going into 2011. While the environment varied by geographical region, we continue to see improvement in market fundamentals related to demand and are not seeing any major changes in pricing trends from the prior period. We continue to improve our competitive position to meet this demand with key investments in our product offerings and core networks, expansion into new markets, combined with the commitment to customer experience. We believe these are all fundamental drivers of our current and future growth.
We see sustained strength in the underlying fundamental driving demand. These include continued globalization by multi-national enterprises, adoption of IT technologies and converged applications, and a proliferation of IP video consumption in both consumer and enterprise markets.
All of this leads to a strong demand for high performance and intelligent transport, data center infrastructure, tailored solutions for horizontal and vertical market applications, and basic IP transit services. As a result, we are increasingly targeting our investments in deploying our unique global assets to deliver against these demand trends with increasing focus on value-added applications, and we are deploying resources to sell into markets where these applications are growing fast.
Now, before turning to John Kritzmacher for a detailed discussion of our financial results, I will review some key highlights of our business. I will briefly discuss what we are seeing in the market, our investment initiatives and plans for 2011. I will conclude with a summary of our financial targets for 2011, which John Kritzmacher will then discuss in much more detail. Let’s get started.
2010 was a year of marked progress as we continue to move our company up the value chain and position ourselves for long-term profitable growth. We continued to expand our data center assets and managed services capability and finished the year with approximately $140 million of revenue from data center and collocation services. Increasingly, these services are being bundled with network services and applications to deliver integrated solutions.
We introduced several new value-added solutions with significant growth potential. For example, we enhanced and expanded our global Ethernet service to offer customers more efficient performance in greater control with end-to-end service-level guarantees. We deployed a telepresence offer along with a series of unified communication solutions that allow customers to custom design applications to work with our services, stream video, and simply use with desktop and mobile applications – simplified use.