The loss was US$50.4 million, or US$0.09 a share, compared with net income of US$12.5 million, or US$0.03, a year earlier, spokeswoman Madelyn Smith said. Revenue was US$22.3 million in the recent quarter. There was no revenue a year earlier.
Asia Global is a venture of financier Gary Winnick's Global Crossing, Japan's Softbank and Microsoft. The company's principal operating joint ventures are Hutchison Global Crossing in Hong Kong and Global Access in Japan.
Accounting for proportional ownership in these ventures, Hamilton, Bermuda-based Asia Global said it had cash revenue of US$112.3 million and adjusted cash flow of US$49.2 million in the quarter. The company said it expects proportionate cash revenue to nearly double in 2001.
"The data-services business is performing ahead of expectations," said Dan Fletcher, an analyst at Lehman Brothers who rates Asia Global a "strong buy." Asia Global could see substantial sales in the next few quarters from Global Crossing's recent US$300 million, five-year agreement to carry traffic from the Swift financial co-operative, he said.
Cash revenue refers to reported revenue plus the cash portion of deferred revenue for products where accounting rules specify the recognition of received revenue over 15 or 20 years, Asia Global Crossing said.
Many analysts and investors use cash flow--or earnings before interest, taxes, depreciation and amortization--to value companies with heavy debt loads, such as those building communications networks. Asia Global had US$1.16 billion of long-term debt at December 31.
2001 forecast
Asia Global said it expects US$610 million to US$630 million in proportionate cash revenue, up from US$321.8 million last year. It expects US$220 million to US$250 million in proportionate adjusted cash flow in 2001, up from US$135.9 million in 2000.
The company expects reported revenue of US$90 million to US$100 million this year, less than the US$153.6 million it had in 2000. Last year's figure includes US$138.3 million in revenue from long-term sales-type leases.
Asia Global expects a loss of US$0.60 to US$0.65 a share and consolidated capital expenditures of US$850 million to US$925 million in 2001, up from US$754 million in 2000.
The forecasts are "right in line with what people were expecting," Lehman's Fletcher said. "They had a very strong quarter, but there's a real big ramp there, so I'm still hesitant to bring up the numbers."
Asia Global Crossing shares Monday rose US$1.22 to US$9.97. They have climbed 42 percent since first being sold to the public in October. Global Crossing rose US$0.20 to US$19.68. Asia Global released results after the close of regular US trading.
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