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BUSINESS
November 27, 1997
Christopher R. McCleary, the man widely credited with transforming Digex Inc. of Beltsville from a small regional Internet service provider into a company with a national reach, is stepping down.McCleary, 45, said yesterday that he would resign from the company by the end of the year. His posts at Digex -- president and chief executive officer -- are being eliminated by Digex's new parent, Intermedia Communications Inc.The Tampa, Fla.-based telecommunications company, which bought Digex in July for $150 million, said the president and CEO posts at Digex are being eliminated as part of the merger.
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BUSINESS
By Stacey Hirsh and Stacey Hirsh,SUN STAFF | April 22, 2003
The technology sector's downward spiral wasn't the only force Digex Inc. had to reckon with last year. It also had to face the backlash from the bankruptcy and accounting scandal of its majority shareholder, WorldCom Inc. But with the telephone giant set to emerge from Chapter 11 in the fall, Laurel-based Digex is expecting a boost in business from WorldCom. "There can be nothing but positive for Digex with WorldCom coming out of bankruptcy," said Andrew M. Schroepfer, who follows Digex and is president of Tier 1 Research in Minneapolis.
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BUSINESS
November 30, 1995
Digital Express Group, a Beltsville-based Internet access provider, said yesterday that it would donate high-speed connections to the worldwide computer network to each of Maryland's 24 public school systems.Doug Humphrey, chairman of Digex, made the surprise announcement at a meeting of the state Information Technology Board. He said his company would provide the service free for a full school year to any of Maryland's 23 counties or Baltimore City.The company put the value of the offer at $5,000 to $10,000 per school system.
BUSINESS
By Stacey Hirsh and Stacey Hirsh,SUN STAFF | December 14, 2002
Digex Inc., an Internet company in Laurel whose shares have fallen more than 99 percent from their all-time high, said yesterday that Nasdaq plans to delist its stock from the Nasdaq SmallCap Market because it has failed to get its stock price above the minimum $1 level. The company said it is appealing Nasdaq's decision. "We have requested a hearing to appeal the staff's determination," George Kerns, Digex president and chief executive officer, said in a statement. "Regardless of the outcome, we will continue with initiatives to further grow the company and ultimately meet the criteria.
BUSINESS
By Timothy Mullaney and Timothy Mullaney,SUN STAFF | January 5, 1997
Digex Inc., the Beltsville-based Internet service provider, has completed its acquisition of Electronic Press Services, a Boston firm that makes software to connect World Wide Web sites to large corporate databases.Terms of the deal were not disclosed. But Digex executives have said the capabilities of EPS' software will help them make more versatile Web sites for customers who want to conduct retail sales or similar businesses online.EPS' 40 employees are expected to continue to work in Boston, Digex said when the deal was announced last month.
BUSINESS
By Timothy J. Mullaney and Timothy J. Mullaney,SUN STAFF | October 4, 1996
Digex Inc. landed a multimillion-dollar contract to help the Bell phone company serving Texas launch its private-label Internet service, the Beltsville company said yesterday.Digex got its chance because SBC Communications Inc., formerly known as Southwestern Bell Corp., is not yet allowed to handle long-distance calls within the states where it has traditionally monopolized local telephone service.Instead, SBC will move its customers' Internet transmissions over its own network if they only involve connecting computers within a local calling area, Digex director of product management Dave Dobel said.
BUSINESS
BY A SUN STAFF WRITER | March 8, 1997
Digex Inc., a Beltsville Internet service company, yesterday reported a $23.7 million net loss for 1996.The company said the $3.68-per-share net loss stemmed from construction and other costs associated with its national Internet network and WorldWide Web site management system. In 1995, Digex lost $4.3 million, or 63 cents per share."Digex is well-positioned for 1997," said Christopher R. McCleary, the company's chairman and chief executive. "Our heavy investments in a world-class network, a state-of-the-art Web site management facility and superb customer support, have earned Digex a reputation as a high-quality, responsive, national Internet provider."
BUSINESS
By Timothy J. Mullaney and Timothy J. Mullaney,SUN STAFF | June 6, 1997
Digex Inc.'s brief and sometimes turbulent history as an independent company neared an end yesterday, as the Beltsville-based Internet service provider said it will sell itself to a Florida-based phone company for $150 million.The $13-a-share price that Intermedia Communications Inc. of Tampa will pay for Digex is 28 percent above the $10.125 a share Digex commanded in its initial public offering last October. However, Digex had been on a roller-coaster since even before it went public.Digex, founded in 1991, canceled its IPO last August after a technology stock sell-off.
BUSINESS
By Michael Dresser and Michael Dresser,SUN STAFF | January 26, 1996
Doug Humphrey just demoted himself and hired his new boss.The founder of the Digital Express Group in Beltsville announced yesterday that satellite company executive Christopher McCleary will become the new chief executive officer of the fast-growing Internet access provider.Mr. Humphrey will revert to his role as chief technical officer."For the company to go to the next level, you really have to have someone who has management experience," said Mr. Humphrey.Mr. McCleary, 46, is leaving his position as vice president and general manager of American Mobile Satellite Corp.
BUSINESS
By Timothy J. Mullaney and Timothy J. Mullaney,SUN STAFF | September 18, 1996
Digex Inc. will expand into the European Internet market for the first time under a deal to sell Internet services to a Rockville satellite services company, which will resell them to its own customers in Europe.The deal will let a unit of Orion Network Systems Inc. offer its customers more telecommunications capabilities, and gives Beltsville-based Digex its fourth big deal to sell Internet-access service under another company's name, a tactic it has embraced in order to diversify from its core business of selling Internet access to corporate end-users.
BUSINESS
By Stacey Hirsh and Stacey Hirsh,SUN STAFF | November 13, 2002
Digex Inc., a corporate Web-hosting company headquartered in Laurel, reported yesterday that its losses narrowed but its revenue decreased in the third quarter. The news came just one day after the company, whose majority shareholder is WorldCom Inc., said that it was considering a sale. "This is really the first quarter that we got a true picture of what we've been working on for the past 90 days or so since George [Kerns] took over the reins as CEO," said the company's chief financial officer, Scott Zimmerman.
BUSINESS
By Andrew Ratner and Andrew Ratner,SUN STAFF | November 12, 2002
Digex Inc., an Internet company in Laurel whose troubles have been eclipsed by those of its majority investor, WorldCom Inc., announced yesterday that it will explore a possible sale. The company, which hosts corporate Web sites and e-mail, said its board of directors has retained the Boston investment bank Lane, Berry & Co. International LLC to explore "strategic options," including a sale. "We believe the retention of a respected investment bank is in the best interests of the company and will be welcomed by all of our constituencies," George Kerns, Digex president and chief executive officer, said in a statement.
BUSINESS
By Julie Bell and Julie Bell,SUN STAFF | August 16, 2002
Digex Inc., a corporate Web-hosting company that is majority-owned by financially troubled WorldCom, said yesterday that its second-quarter loss more than doubled as revenue declined and it took a $57 million charge to write down the value of certain assets. The Laurel-based company, which announced last week the layoffs of 200 employees, 20 percent of its work force, said it lost $119 million, or $1.83 a share. That compares with a loss of $48.3 million, or 76 cents a share, in the second quarter of last year.
BUSINESS
By Stacey Hirsh and Stacey Hirsh,SUN STAFF | August 7, 2002
Digex Inc. said yesterday that it is laying off 200 employees, about 20 percent of its work force, in an effort to become less dependent on its biggest shareholder, bankrupt telephone giant WorldCom Inc. The Beltsville company, which hosts Web sites and other business applications, such as e-mail, said the job cuts are part of a plan to become financially independent. Digex borrowed $9 million from WorldCom during the second quarter. Digex spokeswoman Secret Wherrett said the amount of cash Digex has to borrow from WorldCom "is decreasing quarter over quarter, but the goal is to not need to borrow and to be self-sustaining."
BUSINESS
By Andrew Ratner and Andrew Ratner,SUN STAFF | October 25, 2001
Digex Inc., a Beltsville-based corporate Web-hosting company, was so coveted at the height of the Internet boom that WorldCom Inc. spent $4 billion for a parent company it didn't want just to get control of Digex. But the prize inside doesn't shine as brightly as it once did, as evidenced by the company's lackluster third-quarter earnings released yesterday. Digex reported a net loss for the three months that ended Sept. 30 of $51.2 million, or 80 cents per basic and diluted share. That compared with a loss of $41.3 million, or 65 cents per basic and diluted share, for the comparable period in 2000.
BUSINESS
By Stacey Hirsh and Stacey Hirsh,SUN STAFF | August 2, 2001
Digex Inc., a Beltsville Web-hosting company, reported yesterday that its losses widened in the second quarter - even as revenue increased - and said its financial forecasts for the year would be lower than expected. The company, now controlled by WorldCom Inc., had revenue of $53.8 million for the three months that ended June 30. That compares with revenue of $40.4 million for the corresponding quarter last year. Digex reported a net loss of $47.3 million, or 74 cents per share, for the quarter, compared with a net loss of $34.5 million, or 54 cents per share, for the quarter a year ago. The net loss before interest, taxes, depreciation and amortization were $13.7 million for the quarter, compared with $19 million for the quarter a year ago. WorldCom had agreed to acquire a controlling interest in Digex last year through its merger with Intermedia Communications Inc. The deal became final last month.
BUSINESS
By Timothy J. Mullaney and Timothy J. Mullaney,SUN STAFF | June 18, 1996
One of Maryland's hottest high-tech firms upshifted onto the financial superhighway yesterday, as Internet access provider Digex Inc. said it is seeking federal approval for an initial public stock offering to raise up to $55 million.The Beltsville-based company ranked second on the Greater Baltimore Committee's "Fast 40" list of high-growth Maryland technology firms last fall, but remains tiny compared to its competitors in the hotly competitive business of connecting clients' computers to the Internet.
BUSINESS
By Timothy J. Mullaney and Timothy J. Mullaney,SUN STAFF | October 18, 1996
Maryland's economy took another step into its high-tech present yesterday, as the Beltsville-based Internet service provider Digex Inc. completed the initial public stock offering it had called off after the summer breakdown in the market for technology stocks.The $45 million offering was the latest in a series of initial public offerings that are transforming the face of corporate Maryland. Digex became at least the 16th Maryland company to go public since the beginning of last year, almost all of them related either to new information technology or to deregulation of existing science-based businesses like telephones or health care.
BUSINESS
By Andrew Ratner and Andrew Ratner,SUN STAFF | February 17, 2001
WorldCom announced yesterday that it has agreed to pay $430 million to settle lawsuits seeking to block a complex merger that would have given it Digex Inc., a Beltsville company that runs Web sites for businesses. WorldCom, the No. 2 U.S. long-distance company, agreed to settle so that it can complete its $4.2 billion purchase of Intermedia Communications Inc. of Tampa, Fla., the parent company of Digex. The merger appears to be on track for completion in June. Judge William B. Chandler III of Delaware Chancery Court, who has approval power over the proposed settlement, has scheduled an April 6 hearing.
BUSINESS
By Stacey Hirsh and Stacey Hirsh,SUN STAFF | February 2, 2001
Digex Inc., a Beltsville Web-hosting company, said yesterday that its fourth-quarter loss widened as its revenue grew. For the quarter that ended Dec. 31, the company reported a net loss of $41.4 million, or 65 cents per diluted share, compared with a loss of $22.4 million or 36 cents per diluted share, for the corresponding quarter of 1999. Revenue for the quarter nearly tripled, climbing from $21.7 million in 1999 to $57.9 million in 2000. Net losses for the year were $143.1 million, or $2.26 per diluted share, compared with a net loss of $65 million, or $1.19 per diluted share, for 1999.
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