8/13/03
XO Communications Announces Results for Second Quarter 2003
Reston, VA -- August, 13, 2003 -- XO Communications, Inc. today announced revenue and financial performance results for the three and six month periods ending June 30, 2003. Total revenue for the second quarter of 2003 was $283.9 million, compared to $286.1 million reported for the first quarter of 2003, and $325.5 million reported in the second quarter of 2002. For the first half of 2003, total revenue was $570.0 million, compared to $658.9 million for the first half of 2002.
"Since the beginning of the year, XO has increased its direct sales force by 46% to better position the company for new sales opportunities and broader market penetration in select areas. XO intends to leverage the full resources of its sales and marketing efforts while supporting its national customer base," said Carl Grivner, XO CEO.
Of the total revenue reported for the second quarter of 2003, $150.0 million was generated from voice services, which includes revenue from local, long distance and other enhanced voice services, $97.3 million was attributable to data services, which includes Internet access, network access and web hosting and $36.6 million resulted from integrated voice and data services.
On the cost side, the Company has reduced cost of service in both absolute dollars and as a percentage of revenue due to cost optimization and favorable resolution of disputed third party costs. Cost of service for the second quarter of 2003 was $104.9 million (or 37% of revenue) compared to $134.3 million (or 41% of revenue) reported in the second quarter of 2002. Selling, operating and general expense decreased in absolute dollars to $165.0 million for the second quarter of 2003 compared to $188.3 million for the second quarter of 2002.
About XO Communications
XO Communications is a broadband telecommunications services provider offering local and long distance voice services, Internet access, Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting and Integrated voice and data services to business customers nationwide. XO owns facilities-based broadband networks and has tier one Internet peering relationships in more than 60 markets throughout the continental United States.
For more information contact:
Dawnyielle Downes/ XO Communications
Media and Industry Analysts
703-547-2682 or 703-675-3450
XO Communications Investor Relations Department
Financial Analysts
877-444-2068
