Global Crossing Ltd. Q2 2009 Earnings Call Transcript

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2009-07-29 10:23:26.0

Tags: Global Crossing Ltd., Call Transcript, U.K., Earnings, Jefferies & Co., Sales Strategy, Sales Force Management, Real Estate, Sales, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from Romeo Reyes – Jefferies & Company.

Romeo ReyesJefferies & Company

What was the CapEx for Impsat and for U.K., number one? And then number two, John K., you talked about equipment and professional fees being a little bit higher at the U.K. level. We noticed also SG&A was a little bit higher than we had expected. Can you just give us a little bit more color or granularity on that that would be great? Just another quick question on the sales the $3.6 million number that you put up there. How has that trended over the last three or four months?

John Kritzmacher

Romeo, I was having a little bit of difficulty hearing you, but I believe your first questioning was around CapEx by segment. Second question is around spend and the high performance inside of the U.K., and then the last piece?

Romeo ReyesJefferies & Company

The last piece was around that trajectory of the $3.6 million average that you noted on new sales.

John Kritzmacher

Let me take those in order. First, with regard to capital expenditures, let me give you the breakdown of our net capital expenditures by each of the segments. Rest of World was $31 million, U.K. was $8 million a little bit higher than is typical in the U.K., and Impsat was $15 million for total net capital expenditures of $54 million. With regard to your question around spending in the U.K., there were a couple of things happening there, one is the overall cost of sales.

We are seeing a slight change in mix a bit more value added content in some of the sales that we see there. So equipment costs and professional fees have trailed up a slight bit in the overall mix of our revenue there. That's one of the impacts, but just a small piece. And then along with that we had, as I noted, both impacting our cost of sales, as well as impacting our SG&A expense in the U.K. we had higher real estate costs, including an adjustment to our real estate restructuring reserves in the period.

Gary Breauninger

I'll start off with the points John made earlier in the presentation that the numbers themselves have been pretty consistent, particularly if you look at it on a constant currency basis. And consistency defined as whether it be geography of the world or by sales segment in those geographies, i.e. our enterprise business versus our carrier business.

 

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