Hatteras Networks today announced that XO Communications has signed a multi-million dollar agreement, standardizing on its award-winning HN4000 and HN400 platforms as the exclusive Mid-Band Ethernet (MBE) solution to be used in its network. XO is currently deploying the Hatteras platform to expand the reach of its Ethernet Services footprint in 60 metropolitan markets, enabling businesses at copper-fed locations to take advantage of Ethernet services previously only available at buildings connected by fiber. Read the rest of this entry »
XO Holdings released a press release which boils down to the fact that XO Communications is not in the market for acquisition. Read the rest of this entry »
In order to drive greater agility in the execution of its growth strategy, XO Communications today announced the formation of two new business units, XO Business Services and XO Carrier Services, each of which will be led by its own president. The creation of lines of business strengthens the company’s focus around specific customer segments and highlights the company’s unique competitive advantages in serving business and wholesale customers as the telecommunications industry consolidates. Read the rest of this entry »
XO Communications today announced its first significant market deployments of fixed broadband wireless technology that will broaden its ability to deliver business-class broadband solutions directly to businesses and help the company reduce local network costs.
XO has deployed fixed broadband wireless in nine metropolitan markets – Atlanta, Chicago, Dallas, Houston, Los Angeles, Miami, San Diego, Tampa and Washington, DC – representing the first in a series of markets nationwide in which XO plans to utilize fixed broadband wireless technology through a partnership with its sister company, Nextlink, the leading provider of broadband wireless services and the nation’s largest holder of Local Multipoint Distribution System (LMDS) spectrum with licenses in 75 metropolitan markets. Read the rest of this entry »
XO Communications today announced the availability of Perimeter Email Protection (PEP), its new email security and email disaster recovery service. The new service expands the existing XO email and hosting service delivery platform to provide businesses with increased email security and optimal mail server performance, and helps combat increasing costs associated with junk email, denial of service attacks and viruses spreading on the Internet. Read the rest of this entry »
XO Holdings, Inc. (OTCBB: XOHO.OB) today reported its second quarter 2006 financial and operational results. For the second quarter ended June 30, 2006, XO Holdings reported $354.3 million in revenue, $20.3 million in adjusted EBITDA2 and a net loss of $36.1 million. XO Holdings (XOH) operates two business units, XO Communications, LLC (XOC), its wireline business, and Nextlink Wireless, Inc. (Nextlink), its wireless business. Read the rest of this entry »
XO Communications today announced that it is now carrying customer traffic on major segments of its new, wholly-owned next generation nationwide long haul inter-city fiber optic network. As announced earlier this year, XO is upgrading its long haul network by deploying the Infinera DTN optical system, the industry’s most advanced digital fiber optic technology, across its wholly-owned nationwide fiber assets. The upgrade will allow XO to more than double network capacity and enable XO to offer a broader range of higher-speed data transport services to meet the increased bandwidth demands of content providers, enterprises and service providers. Read the rest of this entry »
XO Communications today announced that it carried 3.89 billion minutes of Voice over Internet Protocol (VoIP) traffic across its private nationwide IP network in the second quarter of 2006, a 34 percent increase over the previous quarter and a 140 percent increase over the second quarter of 2005. The increase was driven by greater deployment of XO VoIP solutions by businesses and service providers, demonstrating the increasing demand for delivering voice services over an all IP network environment.
“Demand for our voice over IP services continues to grow as businesses and service provider customers accelerate their migration of voice traffic to services based on IP,” said Carl Grivner, CEO of XO Communications. “Our private IP network and robust Voice over IP platform provides customers with the broad nationwide coverage and performance to meet their requirements today and in the future.”
XO offers a full suite of commercial and wholesale VoIP solutions delivered over an advanced softswitch and private IP network platform powered by Sonus Networks and Juniper Networks. This platform delivers both traditional circuit-switched voice traffic and packet-based VoIP traffic, allowing XO to support customers that continue to rely on time division multiplexing (TDM) technology and those that have migrated to more advanced, IP-based voice technology. By managing the VoIP platform over its own private IP network, XO helps customers avoid the congestion and delays of the public Internet while ensuring that customers’ voice traffic is delivered with the same quality and reliability of traditional telephone networks.
For carriers and service providers, XO offers a complete suite of wholesale services, including VoIP origination, VoIP termination, IP transit, wholesale local voice, long distance termination and multi-market local inbound calling services. For business customers of all sizes, XO offers a wide range of voice services including local voice, dedicated and switched long distance, interactive voice response, and its award-winning VoIP services bundle, XOptions Flex. Since its introduction in April 2005, nearly 5,000 businesses have seamlessly moved into the IP world by taking advantage of XOptions Flex’s fixed flat rate pricing and high performance service capabilities.
For more information about XO’s services for businesses, carriers and service providers, contact an XO sales representative by calling (646) 736-7816 or visit xo.com
XO Communications leads all competitive local exchange carriers (CLEC) in terms of marketshare among small and medium-sized businesses, according to a recent report from the Yankee Group.
The report, “How Do SMBs Fare in the CLEC Versus ILEC Matchup?”, found that XO has the single largest share of the small and medium-sized business market among all CLECs with 11 percent, nearly double the marketshare of its nearest CLEC competitor. Among all local service providers, XO has the single largest marketshare in the small and medium-sized business market after the incumbent local exchange carriers. The Yankee Group defines the small and medium-sized business segment as companies with 20 to 500 employees.
“The findings of the Yankee Group report confirm that XO is leading the market in terms of IP services for business customers,” said Charlie Cary, vice president of marketing at XO Communications. “Our focus on innovative bundles and VoIP solutions, like XOptions Flex, supported by superior customer service has enabled XO to break away from the pack in terms of leading the market with these types of offerings.”
XO is a leading national provider of bundled communications services that offer small and medium-sized businesses predictable flat-rate pricing. In 2000, XO pioneered the bundled services market with the launch of XOptions, the industry’s first integrated services offering to combine voice, Internet access and web hosting services for a flat monthly price. In 2005, XO again led the industry with the launch of XOptions Flex, the industry’s first business-class VoIP bundle to offer virtually unlimited local and long distance calling combined with dedicated Internet access and web hosting for a single, flat monthly price. Since its launch last year, more than 4,300 businesses nationwide have deployed XOptions Flex.
RESTON, VA – XO Holdings, Inc. (OTCBB: XOHO.OB) today reported its first quarter 2006 financial and operational results. For the first quarter ended March 31, 2006, XO Holdings reported $349.7 million in revenue, $17.4 million in adjusted EBITDA2, and a net loss of $43.7 million. XO Holdings (“XOH”) operates the business in two segments. XO Communications, LLC (“XOC”) operates the wireline business, and Nextlink Wireless, Inc. (“Nextlink”) operates the wireless business.
Highlights for First Quarter 2006
XOC (wireline business)
• Adjusted EBITDA increased 1% to $22.5 million from $22.2 million in the same period last year
• Strong sequential growth in new commercial and wholesale IP services:
o Launched in April 2005, XOptions Flex closed quarter with 3,900 total new customers, generating $5.3 million in first quarter revenue as compared to $3.5 million in the fourth quarter of 2005
o Expanded wholesale VoIP services portfolio during the quarter, generating $4.3 million in first quarter revenue as compared to $1.8 million in the fourth quarter of 2005
• Carried more than 2.9 billion minutes of VoIP traffic across nationwide IP network, representing a 32 percent increase over fourth quarter of 2005
Nextlink (broadband wireless business)
• Officially launched Nextlink on April 24, 2006 offering wireless backhaul, high-speed network access, and network redundancy in six metropolitan markets
• Achieved revenue of $0.1 million, compared to $0.2m in all of 2005
XO Holdings Chief Executive Officer, Carl J. Grivner said, “We are very pleased with the success of our new voice over IP solutions for businesses and service providers and are excited about the enhanced capabilities of our long haul fiber network and the recent launch of Nextlink, which holds one of the largest arrays of fixed wireless spectrum assets. Operationally, we continued to make strides in reducing our costs and growing revenue from our core services and new strategic IP services.”
Revenue from XOC in the first quarter of 2006 was $349.6 million compared to $351.2 million in the fourth quarter of 2005 and $361.5 million in the first quarter of 2005. Revenue from Nextlink was $0.1 million in the first quarter of 2006 compared to $0.0 million in the first quarter of 2005.
Revenue from voice services – consisting of local, long distance and other voice services – was $179.4 million in the first quarter of 2006 compared with $177.6 million in the fourth quarter of 2005 and $186.3 million for the first quarter of 2005. Revenue from core voice services grew, but this was offset by XOC’s deliberate de-emphasis of sales of non-core voice services. Revenue from data services – consisting of Internet access, network access and web hosting – was $103.8 million in the first quarter of 2006 compared with $107.4 million in the fourth quarter of 2005 and $108.4 million for the first quarter of 2005. Revenue from core data services such as Collocation, Ethernet and Multi-Transport Network Services grew modestly, but this was offset by declines in revenue from non-core services like dial-up internet access, digital subscriber line and stand-alone hosting services. Revenue from integrated services – consisting of integrated data and voice services – was $66.3 million in the first quarter of 2006 compared with $66.5 million in the fourth quarter of 2005 and $66.8 million for the first quarter of 2005. Revenue from core integrated services grew as a result of strong acceptance of XOptions Flex, but this was offset by XOC’s deliberate de-emphasis of sales to non-core integrated services.
Gross margin, as such term is used here (see footnote 1), for XOC in the first quarter of 2006 was $195.2 million, or 55.8% of revenue, compared to $196.2 million, or 55.9% of revenue, in the fourth quarter of 2005 and $213.6 million, or 59.1% of revenue, in the first quarter of 2005. Cost of service for the first quarter of 2006 increased compared to the same period in 2005, largely as a result of the adverse impact from the Triennial Review Remand Order as discussed in the “Regulatory Overview” section of XOH’s Form 10-Q quarterly report. Gross margin for Nextlink in the first quarter of 2006 was $0.1 million, or 100% of revenue. Nextlink is currently providing services between wireless hubs and remotes for which there is no corresponding cost of services. In the future Nextlink expects to incur cost of service as the product and customer base expands.
Selling, Operating and General Expenses
SOG expenses for XOC in the first quarter of 2006 were $173.7 million, or 49.7% of revenue, compared with $178.7 million, or 50.9% of revenue, in the fourth quarter of 2005 and $191.5 million, or 53.0% of revenue, in the first quarter of 2005. The improvements as a percentage of revenue are largely attributable to back office efficiencies as a result of system automation and consolidation of functions. SOG expenses for Nextlink in the first quarter of 2006 were $5.2 million compared with $0.2 million in the first quarter of 2005. Nextlink incurred $2.9 million of professional and legal services expenses related to the now terminated sale of the Company’s wireline business.
Adjusted EBITDA, as such term is used here (see footnote 2), for XOC in the first quarter of 2006 was $22.5 million compared with $17.5 million in the fourth quarter of 2005 and $22.2 million in the first quarter of 2005. Adjusted EBITDA for the first quarter of 2006 included favorable carrier settlements of $9.9 million, compared with $12.4 million in the first quarter of 2005. Adjusted EBITDA for Nextlink in the first quarter of 2006 was ($5.1) million compared to ($0.2) million in the first quarter of 2005.
Net loss for XOH in the first quarter of 2006 was $43.7 million, or ($0.26) per share, compared with a net loss of $43.5 million, or ($0.26) per share, in the fourth quarter of 2005 and a net loss of $42.9 million, or ($0.25) per share, in the first quarter of 2005.
Capital expenditures for XOC were $20.9 million in the first quarter of 2006 compared to $21.5 million in the first quarter of 2005. Capital expenditures for Nextlink were $1.9 million in the first quarter of 2006 compared to $0.0 million in the first quarter of 2005.
During the first quarter of 2006, XOH’s balance of cash and cash equivalents decreased to $161.4 million compared to $176.8 million at the end of the fourth quarter of 2005. Negative cash flow was substantially driven by timing issues of cash payments versus accruals.
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Interlink Global Corp. (OTC:ILKG) today announced that it has selected XO Communications to support the delivery of Voice over Internet Protocol (VoIP) services from Interlink Global Corp. to its US customer base.
By using XO's wholesale VoIP services, Interlink Global will be able to provide its customers even higher levels of service and performance. Interlink Global is leveraging the XO infrastructure and IP transport services to deliver VoIP services to business and residential customers in markets across the United States, previously not served by InterLink Global. XO's wholesale services will also be used to support "NetTalk," Interlink Global's recently launched point to point and multiparty video phone service for home and business customers. Interlink Global provides the full range of VoIP solutions to consumers, businesses, resellers and wholesale customers.
Anastasios Kyriakides Chairman and CEO of Interlink stated:"
We at Interlink are quite pleased to team up with a company like XO Communications. They have the high quality terminations available to further enhance the level of service that our customers currently enjoy. With XO in our camp we can continue to deliver the highest QOS as our client rolls increase due to the diversity and fast rollout of new products, such as NetTalk and Streaming Video."
"We are pleased that Interlink Global has selected XO Communications to support the delivery of their VoIP services nationwide," said Ernie Ortega, president of carrier services at XO Communications. "With our robust nationwide IP network and wholesale VoIP solutions, XO is well positioned to support next generation telephony providers like Interlink Global to cost-effectively deliver services, enter new markets and meet the demands of increased voice traffic."
XO Communications Announces Nationwide Availability of Enhancements to Industry-Leading Business VoIP Services BundleApril 21, 2006
XO Communications today announced the nationwide availability of new enhancements to XOptions Flex, its industry-leading voice over Internet Protocol (VoIP) services bundle, that enable medium-sized businesses to take advantage of the cost-savings and flexibility of VoIP without having to replace their existing phone systems. Today, more than 3,000 businesses nationwide have deployed XOptions Flex, and the new enhancements expand the market for XOptions Flex by extending its availability to businesses with up to 160 employees at each location.
Now available in more than fifty metropolitan markets, the new enhancements allow businesses to utilize XOptions Flex with existing private branch exchanges (PBX) that are connected to a Primary Rate Interface (PRI) or digital trunk and take full advantage of XOptions Flex’s VoIP-enabled capabilities and features. XOptions Flex is the industry’s first VoIP services bundle for businesses that combines virtually unlimited local and long distance calling, dedicated Internet access and web hosting for a flat monthly price. XOptions Flex leverages the latest in VoIP technology to provide customers with advanced capabilities such as unlimited voice calling, dynamic bandwidth allocation, voice virtual private networking (VPN), and a simple online feature management tool.
“These enhancements move XOptions Flex up-market to businesses with larger offices that are looking to cost-effectively migrate to voice over IP,” said Charlie Cary, vice president of marketing at XO Communications. “With more than 3,000 customers, XOptions Flex has quickly gained traction among the small business segment, and we expect that it will gain ground among larger businesses that want to IP-enable their existing telephone systems.”
“One of the largest business concerns for small and medium-sized businesses is limited capital budget, and changing out a phone system can be a substantial investment for them,” said Steve Hilton, Director of Yankee Group’s Small & Medium Business Strategies practice. “Solutions like XOptions Flex that leverage existing infrastructure while offering enterprise-class applications like call center capabilities and VPNs appeal to small and medium-sized businesses that want to grow in a financially sound way.”
XOptions Flex Features
XOptions Flex offers the following features for businesses with existing PBX equipment:
• Dedicated Internet Access up to 3 Mbps
• Dynamic bandwidth allocation
• Virtually unlimited local calling and inbound and outbound domestic long distance calling
• Up to 32 voice channels
• Online feature management for real-time changes to services through the XO Business Center
• Web Hosting Package
• Additional voice lines, hosting and other applications can also be added on an a la carte basis.
With a broadband connection on the XO IP network, XOptions Flex utilizes the XO national IP network and softswitch technology to carry customers’ voice calls more efficiently and cost-effectively than traditional services that rely on the public switched telephone network. As a business-class VoIP solution, XOptions Flex also provides customers with full access to E911 emergency services.