Global Crossing Ltd. New (GLBC) filed Quarterly Report for the period ended 2009-09-30.
Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Global Crossing Ltd. New has a market cap of $727.7 million; its shares were traded at around $12.1 with and P/S ratio of 0.3.
Highlight of Business Operations:
Revenue from our enterprise, carrier data and indirect sales channel, which is the primary focus of our business strategy, decreased $9 million, or 2%, to $553 million in the third quarter of 2009 compared to $562 million in the same period in 2008. This decrease was primarily due to $32 million of adverse foreign currency movements in the three months ended September 30, 2009 compared with the same period of 2008. This decrease was partially offset by additional enterprise, carrier data and indirect channel sales.
As of September 30, 2009 the principal amount of the liability component, its unamortized discount and its net carrying value were $144 million, $16 million and $128 million, respectively, while as of December 31, 2008 the principal amount of the liability component, its unamortized discount and its net carrying value were $144 million, $22 million and $122 million, respectively. The remaining unamortized discount of $16 million as of September 30, 2009 will be amortized, using the effective interest rate method, through the maturity of the 5% Convertible Notes on May 15, 2011. As of both September 30, 2009 and December 31, 2008, the carrying amount of the equity component was $38 million. At September 30, 2009 and December 31, 2008, if the 5% Convertible Notes were converted into shares of our common stock at a conversion price of $22.98 per share, approximately 6.3 million shares of our common stock would be issued.
For each of the three and nine months ended September 30, 2009 and 2008, the effective interest rate for the 5% Convertible Notes was 12.75%. For the three months ended September 30, 2009 and 2008, interest expense for the 5% Convertible Notes related to the coupon and the amortization of the debt discount was $4 million ($4 million after-tax) and $4 million ($4 million after-tax), respectively, while for the nine months ended September 30, 2009 and 2008, interest expense for the 5% Convertible Notes related to the coupon and the amortization of the debt discount was $12 million ($12 million after-tax) and $11 million ($11 million after-tax), respectively.
For the three and nine months ended September 30, 2009, the effect of applying the amendments to ASC Topic 470 with respect to debt with conversion and other options was an increase in our loss applicable to common shareholders of $2 million (or $.03 per basic share) and $6 million (or $.10 per basic share), respectively. For the three and nine months ended September 30, 2008, the effect of applying the amendments to ASC Topic 470 with respect to debt with conversion and other options was an increase in our loss applicable to common shareholders of $2 million (or $.04 per basic share) and $5 million (or $.09 per basic share), respectively.
Our consolidated revenue decreased in the three and nine months ended September 30, 2009 compared with the same periods in 2008 primarily due to: (i) adverse foreign currency movements; (ii) a decline in our carrier voice business; and (iii) the conclusion of the Camelot network contract in the United Kingdom. Revenue in the three and nine months ended September 30, 2009 compared with the same periods in 2008 included $4 million and $12 million, respectively, for a customer buyout of certain long term obligations under an existing contract.
The appreciation of the U.S. Dollar against foreign currencies, primarily British Pound Sterling, the Euro and the Brazilian Real, adversely impacted revenue during the three and nine months ended September 30, 2009 compared with the same periods in 2008 by approximately $33 million and $154 million, respectively. Carrier voice revenue decreased in the three and nine months ended September 30, 2009 compared with the same periods in 2008, as we continue to manage the business to achieve specific margin targets. We expect carrier voice revenue to decline by more than 10% as compared to the prior year. The Camelot network contract attrition negatively impacted revenue by approximately $13 million and $38 million, respectively, for the three and nine months ended Septemb
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