Global Crossing Announces Consolidated Third Quarter Results

Global Crossing (Nasdaq: GLBC) today reported financial and operational results for the third quarter of 2005. Highlights Global Crossing's year-over-year improvement shows continued execution of its business transformation initiatives. The company's "invest and grow" revenue -- that is, revenue from Global Crossing's core businesses serving global enterprises, collaboration and carrier data customers through direct and indirect channels -- grew by 2 percent to $269 million in the third quarter, reflecting data and conferencing revenue growth of 7 percent. "Invest and grow" revenue generated outside of the company's UK business continued to strengthen, with a $15 million or 10 percent increase year over year. "Invest and grow" Adjusted Gross Margin grew 8 percent to $143 million. The company also continued efforts to drive the business closer to profitability, yielding a 30-percent decline in cost of access year over year. Improvements in the company's revenue mix, lower wholesale voice volumes and network efficiencies contributed to the lower costs. "We continue to meet our targets, demonstrating momentum as we become the premier network services provider, serving our carrier and enterprise customers with global converged IP services," said John Legere, Global Crossing's chief executive officer. "We've extended our reach into 12 key markets in mainland China through an agreement with CPCNet, and we became the first global VoIP provider rated as 'SIP-compliant' by Avaya. Our focus on delivering converged IP services is unwavering." Global Crossing carried close to seven billion minutes of Voice over Internet Protocol (VoIP) traffic during the third quarter, comprising 64 percent of the company's voice traffic. Since the end of 2004, Global Crossing's IP traffic has increased from 90 Gbps to 122 Gbps. Global Crossing's IP VPN traffic, which supports converged IP solutions for enterprise customers around the world, grew 300 percent on an annualized basis, highlighting the increased uptake in these scalable, high-performance solutions by the company's customers. Product and service news during the third quarter included Global Crossing's E911 offer for VoIP service providers, supporting the ongoing adoption of VoIP in the marketplace. In October the company announced the deployment of IPv6 in its global network. This powerful standard, the adoption of which has been mandated by the U.S. government, simplifies mobile networking and lays the groundwork for the deployment and adoption of next- generation IP-based applications. Global Crossing also released a number of key enhancements to its flagship IP VPN service in October, delivering an increasingly powerful and versatile solution for businesses, and it announced expansion of its telecommunications license in Mexico. The license now permits the company to sell international and domestic long-distance services directly to Mexican-based businesses and carriers, opening the door to the possibility of delivering VoIP services to this important market. Revenue and Margin Revenue for the third quarter of 2005 was $481 million, representing a year-over-year decline of 22 percent and well ahead of the trajectory required to meet the company's revenue guidance. "Invest and grow" revenue grew by 2 percent year over year to $269 million, while wholesale voice revenue declined 41 percent to $189 million. "Our goal in transforming Global Crossing's business was to achieve higher margins by focusing on the higher-quality IP revenue for which our network was built," continued Mr. Legere. "Today's results are good news for Global Crossing, showing solid performance in our area of focus. Our business transformation is on track." Adjusted Gross Margin (defined in the tables that follow) as a percentage of revenue was 36 percent in the third quarter of 2005, compared to 30 percent in the third quarter of 2004. Adjusted Gross Margin dollars were $175 million, compared to $185 million in the third quarter of 2004 -- a 5 percent decline compared to the 22 percent decline in revenue. On a year-to-date basis, Adjusted Gross Margin dollars increased 3 percent, while revenue declined 21 percent. Adjusted Gross Margin in the "invest and grow" category was $143 million in the third quarter of 2005, representing 8 percent year-over-year growth. Outside of cost of access expense, the company reduced its sales, general and administrative expense by $17 million year over year to $195 million in the third quarter, while costs of equipment sales increased by $5 million during the same time period. Earnings For the third quarter of 2005, Adjusted EBITDA (as defined in the tables that follow) was reported at a loss of $33 million, compared with a loss of $35 million in the third quarter of 2004. Consolidated loss applicable to common shareholders in the third quarter of 2005 was $95 million, compared to a loss of $96 million in the third quarter of 2004. Cash and Liquidity As of September 30, 2005, unrestricted cash and cash equivalents were $260 million. Restricted cash was $23 million. Global Crossing used $45 million of cash in the third quarter, including $19 million of cash for capital expenditures and capital leases. Guidance Below is a summary of the specific financial guidance for 2005 provided on March 16, 2005 and year-to-date results for the first three quarters of the year. Metric 2005 GuidanceYear-to-Date($ in millions) Performance Revenue $1,800 - $1,950 $1,506 "Invest and Grow" Revenue $1,120 - $1,195 $816 Wholesale Voice Revenue $615 - $685 $605 Harvest/Exit Revenue $65 - $70$85 Adjusted Gross Margin Percentage 36% - 41%38% "Invest and Grow" Adjusted Gross Margin $504 - $717 $440 Wholesale Voice Adjusted Gross Margin $68 - $103 $82 Harvest/Exit Adjusted Gross Margin $18 - $25 $47 Adjusted EBITDA ($145 - $115) ($88) Cash Use($180 - $150) ($105) Cash from Assets/IRU's/Marketabl ecurities$60 - $80$75Capital Expense/Capital Leases $95 - $100 $72 Pursuant to the Securities and Exchange Commission's (SEC's) Regulation G, the attached schedules include definitions of Global Crossing's Adjusted EBITDA and Adjusted Gross Margin measures, as well as reconciliations of such measures to the most directly comparable financial measures calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). Conference Call The company will hold a conference call for Wednesday, November 9, 2005 at 9:00 a.m. EST to discuss its financial results. The call may be accessed at +1 212-896-6121 or +44 (0) 870-001-3135. Callers are advised to access the call 15 minutes prior to the start time. A Webcast will also be available at http://www.globalcrossing.com/xml/investors/index.xml. A replay of the call will be available on Wednesday, November 9, 2005 beginning at 11:00 a.m. EST and will be accessible until Wednesday, November 16, 2005 at 11:00 a.m. EST. The replay may be accessed by dialing +1 402-977-9140 or +1 800-633-8284 and entering reservation 21266134. Callers in the UK can dial +44 (0) 870-000-3081 or 0800-692-0831 and enter reservation number 21266134. ABOUT GLOBAL CROSSING Global Crossing (Nasdaq: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to nearly 600 major cities, 60 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. Please visit http://www.globalcrossing.com for more information about Global Crossing. This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including the company's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the inter-company transfer of funds by the company's subsidiaries; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the consequences of any inadvertent violation of the company's Network Security Agreement with the U.S. Government; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to the company's substantial international operations; risks arising out of the company's material weaknesses in internal controls and possible difficulties and delays in improving such controls; the concentration of revenue in a limited number of customers, and the rights of such customers to terminate their contracts or to simply cease purchasing services thereunder; exposure to unreserved contingent liabilities; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. The company undertakes no duty to update information contained in this press release or in other public disclosures at any time. Global Crossing Limited and Subsidiaries Summary of Consolidated Revenues, Cost of access, and Adjusted Gross Margin (unaudited) ($ in millions) Quarter Ended September 30, 2005 GCUK ROW(1)Total Revenues: Enterprise, carrier data and indirect channels $102 $167 $269 Wholesale voice - 189 189 Consumer voice, small business group and trader voice -2323 Consolidated revenues $102 $379 $481 Cost of access: Enterprise, carrier data and indirect channels $(28) $(98) $(126) Wholesale voice - (170) (170) Consumer voice, small business group and trader voice - (10) (10) Consolidated cost of access $(28) $(278) $(306) Adjusted Gross Margin: Enterprise, carrier data and indirect channels $74 $69 $143 Wholesale voice -1919 Consumer voice, small business group and trader voice -1313 Consolidated Adjusted Gross Margin $74 $101 $175 (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited and Subsidiaries Summary of Consolidated Revenues, Cost of access, and Adjusted Gross Margin (unaudited) ($ in millions) Quarter Ended June 30, 2005GCUK ROW(1)Total Revenues: Enterprise, carrier data and indirect channels $110 $164 $274 Wholesale voice 1 196 197 Consumer voice, small business group and trader voice -2828 Consolidated revenues $111 $388 $499 Cost of access: Enterprise, carrier data and indirect channels $(34) $(92) $(126) Wholesale voice (1) (171) (172) Consumer voice, small business group and trader voice - (13) (13) Consolidated cost of access $(35) $(276) $(311) Adjusted Gross Margin: Enterprise, carrier data and indirect channels $76 $72 $148 Wholesale voice -2525 Consumer voice, small business group and trader voice -1515 Consolidated Adjusted Gross Margin $76 $112 $188 (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited and Subsidiaries Summary of Consolidated Revenues, Cost of access, and Adjusted Gross Margin (unaudited) ($ in millions) Quarter Ended September 30, 2004 GCUK ROW(1)Total Revenues: Enterprise, carrier data and indirect channels $112 $152 $264 Wholesale voice 5 313 318 Consumer voice, small business group and trader voice -3838 Consolidated revenues $117 $503 $620 Cost of access: Enterprise, carrier data and indirect channels $(36) $(95) $(131) Wholesale voice (4) (282) (286) Consumer voice, small business group and trader voice - (18) (18) Consolidated cost of access $(40) $(395) $(435) Adjusted Gross Margin: Enterprise, carrier data and indirect channels $76 $57 $133 Wholesale voice 13132 Consumer voice, small business group and trader voice -2020 Consolidated Adjusted Gross Margin $77 $108 $185 (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) ($ in millions) Quarter Ended September 30, 2005 GCUK ROW(1)Total REVENUES $102 $379 $481 Cost of revenue Cost of access (28) (278) (306) Cost of equipment sales (11) (2) (13) Total cost of revenue (39) (280) (319) Selling, general and administrative(31) (164) (195) Depreciation and amortization (10) (26) (36) OPERATING INCOME (LOSS) 22 (91) (69) OTHER INCOME (EXPENSE) Interest expense, net (12) (9) (21) Other income (expense), net (5)4(1) INCOME (LOSS) BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES 5 (96) (91) Gain on preconfirmation contingencies- 9 9 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 5 (87) (82) Provision for income taxes(3) (17) (20) INCOME (LOSS) FROM CONTINUING OPERATIONS 2 (104) (102) Discontinued operations, net of income tax - 8 8 NET INCOME (LOSS)2 (96) (94) Preferred stock dividends -(1) (1) INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $2 $(97) $(95) (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) ($ in millions) Quarter Ended June 30, 2005 GCUK ROW(1)Total REVENUES $111 $388 $499 Cost of revenue Cost of access (35) (276) (311) Cost of equipment sales (11) (4) (15) Total cost of revenue (46) (280) (326) Selling, general and administrative(43) (157) (200) Depreciation and amortization (9) (24) (33) OPERATING INCOME (LOSS) 13 (73) (60) OTHER INCOME (EXPENSE) Interest expense, net (14) (9) (23) Other income (expense), net-1212 INCOME (LOSS) BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES (1) (70) (71) Gain on preconfirmation contingencies-1010 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES (1) (60) (61) Provision for income taxes(2) (13) (15) INCOME (LOSS) FROM CONTINUING OPERATIONS(3) (73) (76) Discontinued operations, net of income tax - 1 1 NET INCOME (LOSS) (3) (72) (75) Preferred stock dividends -(1) (1) INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $(3) $(73) $(76) (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) ($ in millions) Quarter Ended September 30, 2004 GCUK ROW(1) Total REVENUES $117 $503 $620 Cost of revenue Cost of access (40) (395) (435) Cost of equipment sales (7)(1) (8) Total cost of revenue (47) (396) (443) Selling, general and administrative(42) (170) (212) Depreciation and amortization (10) (35) (45) OPERATING INCOME (LOSS) 18(98) (80) OTHER INCOME (EXPENSE) Interest expense, net(2)(8) (10) Other income (expense), net1 (1)- INCOME (LOSS) BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES 17 (107) (90) Gain on preconfirmation contingencies- 5 5 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 17 (102) (85) Provision for income taxes(1)(5) (6) INCOME (LOSS) FROM CONTINUING OPERATIONS16 (107) (91) Discontinued operations, net of income tax - (4) (4) NET INCOME (LOSS) 16 (111) (95) Preferred stock dividends - (1) (1) INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $16 $(112) $(96) (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited and Subsidiaries Condensed Consolidated Balance Sheets ($ in millions) September 30, June 30, December 31,2005 2005 2004(unaudited) (unaudited) ASSETS: Current assets: Cash and cash equivalents$260 $305 $365 Restricted cash and cash equivalents 5 7 4 Accounts receivable, net 254 233 298 Prepaid assets and other current assets90 10998 Total current assets 609 654 765 Property and equipment, net 978 1,002 1,065 Intangible assets, net - -14 Other assets 849187 Total assets $1,671 $1,747 $1,931 LIABILITIES: Current liabilities: Accounts payable $172 $136 $136 Accrued cost of access 161 174 194 Accrued restructuring costs - current portion 323544 Deferred revenue - current portion 766781 Other current liabilities 362 401 367 Total current liabilities 803 813 822 Debt with controlling shareholder256 250 250 Long-term debt 380 385 396 Obligations under capital leases 667090 Deferred revenue 130 125 135 Accrued restructuring costs 90 101 106 Other deferred liabilities 857481 Total liabilities1,810 1,818 1,880 Total shareholders' equity (deficit) (139) (71) 51 Total liabilities and shareholders' equity (deficit) $1,671 $1,747 $1,931 Global Crossing Limited and Subsidiaries Condensed Consolidated Statement of Cash Flows ($ in millions) Quarter Ended September 30, June 30, September 30, 2005 2005 2004 (unaudited) (unaudited) (unaudited) CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: Net loss$(94) $(75) $(95) Loss (income) from discontinued operations(8) (1)4 (Gain) loss on sale of property and equipment -(5)2 Gain on sale of marketable securities-(2)- Gain on sale of assets- (14)- Non cash income tax provision 1711 3 Non cash stock compensation expense 1412 7 Depreciation and amortization 363345 Provision for doubtful accounts 7 - 5 Amortization of prior period IRUs (1) (1) (1) Deferred reorganization costs (2) (4) (26) Gain on pre-confirmation contingencies (9) (10) (5) Other 114 1 Changes in operating assets and liabilities64349 Net cash provided by (used in) operating activities from continuing operations (33)1 (11) Net cash provided by discontinued operations - - (14) Net cash provided by (used in) operating activities (33)1 (25) CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: Purchases of property and equipment(14) (22) (23) Proceeds from sale of property and equipment - -(1) Proceeds from sale of discontinued operations 5 - 1 Proceeds from sale of marketable securities 4 1 7 Proceeds from sale of assets -55 - Change in restricted cash and cash equivalents-(1) 10 Net cash provided by (used in) investing activities(5) 33(6) CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: Proceeds from short term debt with controlling shareholder - -40 Repayment of capital leases (5) (4) (3) Finance and organization costs incurred -(1) (2) Proceeds from exercise of stock options - 1 - Net cash provided by (used in) financing activities(5) (4) 35 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS(2) (2) (2) NET DECREASE IN CASH AND CASH EQUIVALENTS (45) 28 2 CASH AND CASH EQUIVALENTS, beginning 305 27786 CASH AND CASH EQUIVALENTS, end of period $260 $305 $88 Pursuant to the SEC's Regulation G, the following table provides a reconciliation of Adjusted EBITDA, which is considered a non-GAAP (Generally Accepted Accounting Principles) financial metric, to net income, which is the most directly comparable GAAP measure. Global Crossing's calculation of its Adjusted EBITDA measure may not be consistent with EBITDA measures of other companies. Management believes that Adjusted EBITDA is a relevant indicator of operating performance, especially in a capital-intensive industry such as telecommunications. Adjusted EBITDA is an important aspect of the company's internal reporting and is also used by the investment community in assessing financial performance. This non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. As some investors hold separate securities in the form of senior notes issued by Global Crossing (UK) Finance Plc, the company has provided the following information on Adjusted EBITDA contribution from the GCUK subsidiary. Global Crossing Limited Reconciliation of Adjusted EBITDA to Net Loss (unaudited) ($ in millions) Quarter Ended September 30, 2005 GCUK ROW(1)Total Adjusted EBITDA$32 $(65) (33) Depreciation and amortization (10) (26) (36) Interest (expense), net (12) (9) (21) Other income (expense), net (5)4(1) Gain on pre-confirmation contingencies - 9 9 Income tax provision (3) (17) (20) Discontinued operations, net of income tax - 8 8 Preferred stock dividends -(1) (1) Net income (loss) applicable to common shareholders $2 $(97) $(95) (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited Reconciliation of Adjusted EBITDA to Net Loss (unaudited) ($ in millions) Quarter Ended June 30, 2005 GCUK ROW(1)Total Adjusted EBITDA$22 $(49) $(27) Depreciation and amortization (9) (24) (33) Interest (expense), net (14) (9) (23) Other income (expense), net-1212 Gain on pre-confirmation contingencies -1010 Income tax provision (2) (13) (15) Discontinued operations, net of income tax - 1 1 Preferred stock dividends -(1) (1) Net income (loss) applicable to common shareholders$(3) $(73) $(76) (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Global Crossing Limited Reconciliation of Adjusted EBITDA to Net Loss (unaudited) ($ in millions) Quarter Ended September 30, 2004 GCUK ROW(1) Total Adjusted EBITDA$28 $(63) $(35) Depreciation and amortization (10) (35) (45) Interest (expense), net (2)(8) (10) Other income (expense), net1 (1)- Gain on pre-confirmation contingencies - 5 5 Income tax provision (1)(5) (6) Discontinued operations, net of income tax - (4) (4) Preferred stock dividends - (1) (1) Net income (loss) applicable to common shareholders$16 $(112) $(96) (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Definitions: Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, other income/ (expense), gain on pre-confirmation contingencies, reorganization items, net income from discontinued operations, and preferred stock dividends for the consolidated business of Global Crossing. Pursuant to the SEC's Regulation G, the following table provides a reconciliation of Adjusted Gross Margin, which is considered a non-GAAP financial metric, to gross margin, which is the most directly comparable GAAP measure. Adjusted Gross Margin is presented in light of an income statement reclassification reflected in the company's third quarter 2005 financial statements which could make inter-period comparisons of gross margin more difficult. Specifically, cost of equipment sales, which was $13 million in the third quarter of 2005 and represents the cost of equipment sold to managed services, collaboration services, and system integrators customers, has been reclassified such that it is now included in cost of revenue and therefore reduced gross margin. In prior periods, these expenses were classified as other operating expenses and did not impact the gross margin calculation. Adjusted Gross Margin should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. Global Crossing Limited and Subsidiaries Reconciliation of Adjusted Gross Margin to Gross Margin (unaudited) ($ in millions) Quarter Ended Quarter Ended Quarter Ende eptember 30, 2005 June 30, 2005 September 30, 2004 GCUK ROW(1) Total GCUK ROW(1) Total GCUK ROW(1) Total Adjusted Gross Margin: Enterprise,carrier data an ndirec hannels$74 $69 $143 $76 $72 $148 $76 $57 $133 Wholesale voice - 1919- 25 251 3132 Consumer voice,small busines roup and trade oice- 1313- 15 15- 2020Consolidated Adjusted Gross Margin $74 $101 $175 $76 $112 $188 $77 $108 $185 Cost of equipment sales: Enterprise,carrier data an ndirec hannels(11) (2) (13) (11) (4) (15) (7) (1) (8) Wholesale voice - - ------ - Consumer voice,small busines roup and trade oice- - ------ - Consolidated cos f equipmen ales $(11) $(2) $(13) $(11) $(4) $(15) $(7) $(1) $(8) Gross margin: Enterprise,carrier data an ndirec hannels$63 $67 $130 $65 $68 $133 $69 $56 $125 Wholesale voice - 1919- 2525 1 3132 Consumer voice,small busines roup and trade oice- 1313- 1515 - 2020 Consolidate ross margin $63 $99 $162 $65 $108 $173 $70 $107 $177 (1) Rest of World (ROW) represents operations of Global Crossing Limited excluding Global Crossing (UK) Telecommunications Ltd. Definitions: Adjusted Gross Margin is revenue minus cost of revenue, plus cost of equipment sales. CONTACT GLOBAL CROSSING: Press Contacts Becky Yeamans + 1 973 937 0155 PR@globalcrossing.com Tisha Kresler + 1 973 937 0146 PR@globalcrossing.com Kendra Langlie Latin America + 1 305 808 5912 LatAmPR@globalcrossing.com Mish Desmidt Europe + 44 (0) 1256 732 866 EuropePR@globalcrossing.com Analysts/Investors Contact Laurinda Pang + 1 800 836 0342 glbc@globalcrossing.com

Author:  

Email:    

Topic:    

Content:

Related Computer Hardware Articles

• SimpleTech Announces Third Quarter 2005 Results
  9 November 2005



• Computer Hardware Deals:New Coupons from Dell Home November 2005
  8 November 2005



• NVIDIA Announces Third Quarter Earnings Conference Call
  26 October 2005



• hardware News:Actel Announces Third Quarter 2005 Financial Results
  24 October 2005



• Computer Hardware Deals:Dell Coupon Codes October 14 to October 28
  22 October 2005



• Computer Hardware News:IBM Acquires DataPower
  18 October 2005



• Copmuter hardware News:IBM Reports 2005 Third-Quarter Results
  17 October 2005



• Computer Hardware News:KY Ho and Betty Ho Insider Trading Allegations Dismissed By Ontario Securities Commission
  14 October 2005



• Apple Reports Fourth Quarter Results
  12 October 2005



• Neoxen Systems Chose Programmer’s Paradise for Global Distribution Partner
  10 October 2005