(from www.sec.gov)
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Primus Telecommunications Group Inc. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 172,972 | 14721.9 |
| Net Income | (8,764) | -- |
Description:
Primus is a multinational long-distance telecommuni-
cations company providing switched voice, data, private network and value-added services. The company serves corporations, small and medium-sized businesses and residential customers as well as other carriers in North America, Latin America, Europe and the Pacific Rim.
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Primus made its public debut as an emerging long-distance carrier in November, when it sold 5.75 million shares for $10.50 a share.
In mid-January the shares hit a high of $17. But in late February Primus reported slower-than-expected growth and an embarrassing loss of more than $700,000 stemming from a customer who agreed to buy thousands of hours of phone service and did not pay his bill. On Friday the company's stock closed at $7.875.
Primus chose the international arena as its primary niche, counting on the trend of increasing globalization in the corporate sector. The company's strategy is to purchase telephone switches in countries abroad, thus avoiding huge access charges that state-run carriers often charge.
The company has switches in Britain, the District, Toronto and several Australian cities and has plans to hook up Los Angeles and New York. Primus derives almost 90 percent of its revenue through its ownership of Axicorp, Australia's fourth-largest carrier.
On April 1 the company announced an agreement to link Europe to the Middle East by connecting its London switch with a fiber-optics gateway run by the Cyprus Telecommunications Authority.
