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Primus Telecommunications Group, Incorporated Reports Third Quarter 2012 Results

MCLEAN, VA -- (Marketwire) -- 11/07/12 -- Primus Telecommunications Group, Incorporated ("PTGi") (NYSE: PTGI)

  • Q3 Revenue of $63.9MM; Adjusted EBITDA of $10.1MM; Normalized Adjusted EBITDA of $11.1MM
  • Data Center Revenue of $8.5MM, up 10.2%; Adjusted EBITDA of $3.3MM
    • Data Center Business Rebranded BLACKIRON Data with Opening of Toronto DC3
  • North America Telecom Revenue of $55.4MM, Normalized Adjusted EBITDA of $10.5MM, Steady with Prior Run Rate
    • First PTGi Fiber Ring Completed in Ottawa
  • Repurchased Majority of 10% Notes
    • Q3-End Cash Balance of $66.0MM, Net Debt of $52.7MM

Primus Telecommunications Group, Incorporated ("PTGi") (NYSE: PTGI), a global facilities-based integrated provider of advanced telecommunications products and services, announced results for the third quarter ended September 30, 2012.

Peter D. Aquino, Chairman and Chief Executive officer, stated, "Our third quarter results demonstrated continued consistency and operational execution in our two primary segments: 'pure play' data centers, now branded 'BLACKIRON Data,' and North America Telecom. Overall Adjusted EBITDA improved significantly as we are now able to reduce corporate overhead after the sale of Primus Australia in the second quarter. We expect our positive free cash flow profile to continue as we make progress on additional overhead reductions and move more towards success-based capital spends, especially now that our new certified Tier III data center in Toronto opened for business this past August. Our deleveraging effort this past quarter reduced total debt by more than half, cutting interest payments once again from approximately $24 million to $12 million annually. This puts PTGi in a net debt position of only $53 million, a tremendous outcome given where we were just two years ago."

Consolidated Results
Continuing PTGi operations, including Canada and U.S. Retail, are presented below. Results from the Australian operations, as well as from PTGi's International Carrier Services segment are classified as discontinued for all periods presented.

Net revenue was $63.9 million, a decrease of 14.0% from $74.3 million in the third quarter of 2011. The impact of foreign currency was a decrease of $1.0 million. On a constant currency basis, net revenue decreased 12.6%. The primary driver of the decrease in revenue is a decline in local and long distance services.

Net revenue less cost of revenue was $32.4 million, or 50.7% of net revenue, compared to $37.5 million, or 50.5% of net revenue, in the third quarter of 2011. The impact of foreign currency translation was a decrease of $0.5 million. On a constant currency basis, net revenue less cost of revenue decreased primarily due to the decrease in net revenue.

Selling, general and administrative ("SG&A") expense was $23.3 million, or 36.4% of net revenue, compared to $27.2 million, or 36.7% of net revenue in the third quarter of 2011. Excluding $1.0 million of severance and other non-recurring costs, SG&A was $22.3 million, or 34.8% of revenue. The leveraging of SG&A is primarily due to management's focus on reducing overhead to an optimum level to support continuing PTGi operations.

Income from operations was $1.5 million, or 2.3% of revenue, compared to $1.6 million, or 2.1% of revenue in the third quarter of 2011.

Adjusted EBITDA was $10.1 million, or 15.8% of net revenue, compared to $11.0 million, or 14.8% of net revenue, in the third quarter of 2011. Excluding severance and other non-recurring costs, Normalized Adjusted EBITDA was $11.1 million, or 17.4% of net revenue, compared to $10.3 million, or 13.8% of net revenue in the third quarter of 2011. The year-over-year impact of foreign exchange translation was a decrease of $0.2 million. On a constant currency basis, the increase in Normalized Adjusted EBITDA was primarily attributable to decreases in SG&A expenses and greater contribution from growth service offerings.

Net loss was $25.0 million, or $(1.81) per basic and diluted common share, compared to $10.0 million, or $(0.73) per basic and diluted common share, in the third quarter 2011. Third quarter 2012 and 2011 results included losses from the early extinguishment or restructuring of debt of $21.1 million and $6.9 million, respectively. The number of shares outstanding used to calculate basic and diluted earnings per common share in the third quarter of 2012 was 13.9 million, compared to 13.7 million for basic and diluted earnings per common share in the third quarter of 2011.

Segment Results
As a reminder, PTGi is now reporting results from continuing operations in two segments: Data Center, a 'pure-play' data center business highlighting results from the company's 8 state-of-the-art facilities throughout Canada, offering colocation, managed services, and cloud platforms to medium and large enterprises; and North America Telecom, highlighting Primus Canada's competitive telecom suite of voice and data services for consumers and small and medium businesses as well US Retail operations.

Andrew Day, CEO of Primus Canada, stated, "During the third quarter, we continued to execute our strategic plan to invest in and grow our facilities-based data center and fiber revenue streams while maximizing margins from off-net and legacy services. Toronto DC3 opened during the quarter; customers began moving in during Q3 and we have closed additional deals in the fourth quarter. BLACKIRON Data now encompasses 8 data centers and an enhanced cloud platform and is the foundation of our future growth. In North America Telecom, we continue to improve operations and are focused on capturing on-net growth opportunities in consumer and SMB. We completed construction on our Ottawa fiber ring and have provisioned our first customer. We remain focused for the remainder of the year on these strategic priorities."

Data Center

  • Net revenue was $8.5 million, an increase of 10.2% from $7.7 million in the third quarter of 2011. On a constant currency basis, net revenue increased 12.0%. Contributing to the net revenue increase was continued growth in colocation, network connectivity and managed/cloud services.
  • Adjusted EBITDA was $3.3 million, an increase of 4.9% from $3.1 million in the third quarter of 2011. On a constant currency basis and excluding operating expenses for Toronto DC3, Adjusted EBITDA growth was in line with the increase in revenue.
  • Capital expenditures were $4.0 million, compared to $2.5 million in the third quarter of 2011, reflecting the construction capital required for the Toronto DC3 facility, as well as other capacity expansion.

North America Telecom

  • Net revenue was $55.4 million, a decrease of 16.5% from $66.4 million in the third quarter of 2011. On a constant currency basis, net revenue decreased 15.2%. The decrease in net revenue is due primarily to declines in local and long distance services.
  • Adjusted EBITDA was $9.9 million, a decrease of 9.2% from $10.9 million in the third quarter 2011. Excluding severance and other non-recurring costs, Normalized Adjusted EBITDA was $10.5 million, a 3.4% increase from third quarter 2011 Normalized Adjusted EBITDA of $10.2 million. The increase is primarily attributable to a decrease in SG&A expense resulting from focused cost saving efforts.
  • Capital expenditures were $1.8 million in the third quarter of 2012, compared to $2.0 million in the third quarter of 2011. The expenditures are mainly for expansion of growth services capabilities, customer premise equipment and infrastructure maintenance.

Balance Sheet, Liquidity and Capital Resources
PTGi ended the third quarter 2012 with $66.0 million in cash and cash equivalents, down from $209.7 million at June 30, 2012. Cash was generated during the third quarter in the following amounts: $10.1 million of Adjusted EBITDA and $1.3 million of working capital offset by the usage of $119.0 million for the repurchase of 10% Senior Secured Notes, $10.9 million for the premiums and costs associated with the repurchase of the notes, $5.0 million in interest payments associated with the repurchase of the notes, $13.8 million in dividends paid to stockholders and $6.4 million for capital expenditures. PTGi's long-term debt, including current obligations, as of September 30, 2012 was $118.7 million, down from $249.3 million as of December 31, 2011 due to the repurchase of 10% Senior Secured Notes and the elimination of capital leases for the sold Australia segment.

Capital expenditures were $6.4 million in the third quarter of 2012 compared to $8.9 million in the third quarter of 2011. Excluding discontinued operations, capital expenditures were $5.9 million and $4.6 million in the third quarter of 2012 and 2011, respectively. The increase is primarily due to the construction of Toronto DC3.

Free Cash Flow in the third quarter of 2012 was $1.3 million compared to $2.1 million in the third quarter 2011. Net cash used in operating activities was $7.7 million in the third quarter of 2012 compared to $11.0 million in the third quarter of 2011. The primary contributors to the decrease in free cash flow over the prior year quarter were a $0.9 million decrease in Adjusted EBITDA and a $2.7 million increase in interest paid, partially offset by a $2.5 million decrease in capital expenditures and a $0.3 million increase in working capital over the prior year quarter. PTGi defines Free Cash Flow as net cash provided by operating activities less cash used in the purchase of property and equipment.

Jim Keeley, Chief Financial Officer, stated, "PTGi ended the quarter with $66.0 million in cash, having paid down $119 million of 10% Notes to de-lever our balance sheet and reduce interest expense to approximately $12 million on an annual run rate basis. We now expect our capital program for continuing operations to finish the year slightly below our previous outlook of $26 million, and remain focused on investment in high ROI data center and metro fiber projects in Canada."

Conference Call
The Company will hold a conference call on Thursday, November 8, 2012 at 8:30 AM ET. To access the call, please dial 866-305-6438 (toll free) or 706-679-7161 approximately 10 minutes prior to the start of the conference call. The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed via the Investor Relations section of PTGi's web site at www.ptgi.com. The webcast and slide presentation will be available for replay for 90 days at www.ptgi.com.

A telephonic replay of this conference call will also be available by dialing 855-859-2056 (toll free) or 404-537-3406 (access code: 53849357) from 11:30 AM ET on November 8, 2012 until midnight ET on November 15, 2012.

About PTGi
PTGi (Primus Telecommunications Group, Incorporated) is a leading provider of advanced communication solutions, including, traditional and IP voice, data, mobile services, broadband Internet, colocation, hosting, and outsourced managed services to business and residential customers in the United States and Canada. PTGi is also one of the leading international wholesale service providers to fixed and mobile network operators worldwide. PTGi owns and operates its own global network of next-generation IP soft switches, media gateways, hosted IP/SIP platforms, broadband infrastructure, fiber capacity, and data centers located in Canada. Founded in 1994, PTGi is headquartered in McLean, Virginia.

Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures as defined under SEC regulations, which include Adjusted EBITDA, Normalized Adjusted EBITDA and Free Cash Flow. As such, they should not be considered as substitutes for the most directly comparable GAAP measures and should not be used in isolation, but in conjunction with these GAAP measures. Definitions and reconciliations between non-GAAP measures and relevant GAAP measures are set forth in the tables at the end of this press release and will be on PTGi's website at investors.ptgi.com simultaneous with the conference call. Additional information regarding the purpose and use for these non-GAAP financial measures is set forth in our Form 8-K disclosing this press release.

Cautionary Statement Regarding Forward Looking Statements
This press release contains or incorporates a number of "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on current expectations, and are not strictly historical statements. In some cases, you can identify forward-looking statements by terminology such as "if," "may," "should," "believe," "anticipate," "future," "forward," "potential," "estimate," "opportunity," "goal," "objective," "growth," "outcome," "could," "expect," "intend," "plan," "strategy," "provide," "commitment," "result," "seek," "pursue," "ongoing," "include" or in the negative of such terms or comparable terminology. These forward-looking statements inherently involve certain risks and uncertainties and are not guarantees of performance, results, or the creation of shareholder value, although they are based on our current plans or assessments which we believe to be reasonable as of the date hereof. Factors or risks that could cause our actual results to differ materially from the results we anticipate include, but are not limited to: (i) continuing uncertain global economic conditions; (ii) significant changes in the competitive environment, including as a result of industry consolidation, and the effect of competition in our markets, including our pricing policies; (iii) uncertainties from our announcement of our exploration and evaluation of strategic alternatives that may enhance shareholder value or our ability to complete any transactions arising out of that evaluation, including the pursuit of a divestiture of the International Carrier Services business unit; (iv) our possible inability to generate sufficient liquidity, margins, earnings per share, cash flow and working capital; (v) our ability to attract and retain customers; (vi) our expectations regarding increased competition, pricing pressures and declining usage patterns in our traditional products; (vii) the effectiveness and profitability of our growth products and bundled service offerings, the pace and cost of customer migration onto our networks, and the successful network platform migration to reduce costs and increase efficiencies; (viii) volatility in the volume and mix of trading activity on the Arbinet Exchange; (ix) strengthening of the U.S. dollar against foreign currencies, which may reduce the amount of U.S. dollars generated from foreign operating subsidiaries and adversely affect our ability to service our significant debt obligations and pay corporate expenses; (x) our compliance with complex laws and regulations in the U.S. and internationally; (xi) further changes in the telecommunications industry or the Internet industry, including rapid technological, regulatory and pricing changes in our principal markets; (xii) our liquidity and possible inability to service our substantial indebtedness; (xiii) an occurrence of a default or event of default under our indentures, including PTGi's ability to successfully defend against, and satisfy any liabilities arising out of, the alleged default under the 10% Notes Indenture; (xiv) our expectations regarding the timing, extent and effectiveness of our cost reduction initiatives and management's ability to moderate or control discretionary spending; (xv) management's plans, goals, forecasts, expectations, guidance, objectives, strategies, and timing for future operations, acquisitions, synergies, asset dispositions, fixed asset and goodwill impairment charges, tax and withholding expense, selling, general and administrative expenses, product plans, performance and results; (xvi) management's assessment of market factors and competitive developments, including pricing actions and regulatory rulings; (xvii) our possible inability to raise additional capital when needed, on attractive terms, or at all; and (xviii) our possible inability to hire and retain qualified executive management, sales, technical and other personnel. Many of these factors and risks are more fully described in our annual report, quarterly reports or other filings with the Securities and Exchange Commission, which are available through our website at www.ptgi.com. Other unknown or unpredictable factors could also affect our business, financial condition and results. Although we believe that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that any of the estimated or projected results will be realized. You should not place undue reliance on these forward-looking statements, which apply only as of the date hereof. Subsequent events and developments may cause our views to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.


               PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
              CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                  (in thousands, except per share amounts)
                                (unaudited)

                                Three       Three       Nine        Nine
                               Months      Months      Months      Months
                                Ended       Ended       Ended       Ended
                              September   September   September   September
                                 30,         30,         30,         30,
                                2012        2011        2012        2011
                             ----------  ----------  ----------  ----------

NET REVENUE                  $   63,911  $   74,308  $  197,301  $  221,500

OPERATING EXPENSES
  Cost of revenue (exclusive
   of depreciation included
   below)                        31,511      36,808      97,306     109,671
  Selling, general and
   administrative                23,260      27,242      78,415      84,094
  Depreciation and
   amortization                   7,517       8,630      22,944      26,904
  (Gain) loss on sale or
   disposal of assets               131          53         174          51
  Goodwill impairment                 -           -           -           -
                             ----------  ----------  ----------  ----------

    Total operating expenses     62,419      72,733     198,839     220,720
                             ----------  ----------  ----------  ----------

INCOME (LOSS) FROM
 OPERATIONS                       1,492       1,575      (1,538)        780

INTEREST EXPENSE                 (6,325)     (7,576)    (20,098)    (24,054)
ACCRETION (AMORTIZATION) ON
 DEBT PREMIUM/DISCOUNT, net         (55)        (55)       (170)       (158)
GAIN (LOSS) ON EARLY
 EXTINGUISHMENT OR
 RESTRUCTURING OF DEBT          (21,083)     (6,853)    (21,083)     (6,853)
GAIN (LOSS) FROM CONTINGENT
 VALUE RIGHTS VALUATION             235      11,367      (4,916)      7,079
INTEREST AND OTHER INCOME
 (EXPENSE), net                     (26)      2,203         120       1,797
FOREIGN CURRENCY TRANSACTION
 GAIN (LOSS)                      2,834      (5,366)      3,233      (2,794)
                             ----------  ----------  ----------  ----------

INCOME (LOSS) FROM
 CONTINUING OPERATIONS
 BEFORE REORGANIZATION ITEMS
 AND INCOME TAXES               (22,928)     (4,705)    (44,452)    (24,203)

REORGANIZATION ITEMS, net             -           -           -           -
                             ----------  ----------  ----------  ----------

INCOME (LOSS) FROM
 CONTINUING OPERATIONS
 BEFORE INCOME TAXES            (22,928)     (4,705)    (44,452)    (24,203)
INCOME TAX BENEFIT (EXPENSE)         43          34         741         625
                             ----------  ----------  ----------  ----------

INCOME (LOSS) FROM
 CONTINUING OPERATIONS          (22,885)     (4,671)    (43,711)    (23,578)

INCOME (LOSS) FROM
 DISCONTINUED OPERATIONS,
 net of tax                      (2,459)     (4,882)    (18,009)    (12,849)
GAIN (LOSS) FROM SALE OF
 DISCONTINUED OPERATIONS,
 net of tax                           -           -      98,666           -
                             ----------  ----------  ----------  ----------

NET INCOME (LOSS)               (25,344)     (9,553)     36,946     (36,427)
Less: Net (income) loss
 attributable to the
 noncontrolling interest            307        (457)         18         820
                             ----------  ----------  ----------  ----------

NET INCOME (LOSS)
 ATTRIBUTABLE TO PRIMUS
 TELECOMMUNICATIONS GROUP,
 INCORPORATED                $  (25,037) $  (10,010) $   36,964  $  (35,607)
                             ==========  ==========  ==========  ==========

BASIC INCOME (LOSS) PER
 COMMON SHARE:
  Income (loss) from
   continuing operations
   attributable to Primus
   Telecommunications Group,
   Incorporated              $    (1.63) $    (0.37) $    (3.16) $    (1.78)
  Income (loss) from
   discontinued operations        (0.18)      (0.36)      (1.30)      (1.01)
  Gain (loss) from sale of
   discontinued operations            -           -        7.14           -
                             ----------  ----------  ----------  ----------
  Net income (loss)
   attributable to Primus
   Telecommunications Group,
   Incorporated              $    (1.81) $    (0.73) $     2.68  $    (2.79)
                             ==========  ==========  ==========  ==========

DILUTED LOSS PER COMMON
 SHARE:
  Income (loss) from
   continuing operations
   attributable to Primus
   Telecommunications Group,
   Incorporated              $    (1.63) $    (0.37) $    (3.16) $    (1.78)
  Income (loss) from
   discontinued operations        (0.18)      (0.36)      (1.30)      (1.01)
  Gain (loss) from sale of
   discontinued operations            -           -        7.14           -
                             ----------  ----------  ----------  ----------
  Net income (loss)
   attributable to Primus
   Telecommunications Group,
   Incorporated              $    (1.81) $    (0.73) $     2.68  $    (2.79)
                             ==========  ==========  ==========  ==========

WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING:
  BASIC                          13,890      13,715      13,825      12,759
                             ==========  ==========  ==========  ==========
  DILUTED                        13,890      13,715      13,825      12,759
                             ==========  ==========  ==========  ==========
DIVIDENDS DECLARED PER BASIC
 WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING          $        -  $        -  $     1.02  $        -
                             ==========  ==========  ==========  ==========

AMOUNTS ATTRIBUTABLE TO
 COMMON SHAREHOLDERS OF
 PRIMUS TELECOMMUNICATIONS
 GROUP, INCORPORATED
  Income (loss) from
   continuing operations,
   net of tax                $  (22,578) $   (5,128) $  (43,693) $  (22,758)
  Income (loss) from
   discontinued operations       (2,459)     (4,882)    (18,009)    (12,849)
  Gain (loss) from sale of
   discontinued operations            -           -      98,666           -
                             ----------  ----------  ----------  ----------
  Net income (loss)          $  (25,037) $  (10,010) $   36,964  $  (35,607)
                             ==========  ==========  ==========  ==========



                PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
                    CONSOLIDATED CONDENSED BALANCE SHEET
                    (in thousands, except share amounts)
                                 (unaudited)

                                                               September 30,
                                                                   2012
                                                              --------------

Cash and cash equivalents                                     $       66,024
Accounts receivable, net                                              19,119
Other current assets                                                  14,349
Assets held for sale                                                  45,527
                                                              --------------

  TOTAL CURRENT ASSETS                                               145,019

Restricted cash                                                          859
Property and equipment, net                                           64,680
Goodwill                                                              65,081
Other intangible assets, net                                          75,787
Other assets                                                          16,689

                                                              --------------
  TOTAL ASSETS                                                $      368,115
                                                              ==============

Accounts payable                                              $       11,330
Accrued interconnection costs                                          2,726
Deferred revenue                                                       9,311
Accrued expenses and other current liabilities                        20,707
Accrued income taxes                                                   7,578
Accrued interest                                                       5,440
Current portion of long-term obligations                                 116
Liabilities held for sale                                             35,544

                                                              --------------
  TOTAL CURRENT LIABILITIES                                           92,752

Non-current portion of long-term obligations                         117,882
Deferred Tax Liability                                                15,614
Contingent Value Rights                                               21,112
Other liabilities                                                        894

                                                              --------------
  TOTAL LIABILITIES                                                  248,254

Total stockholders' equity                                           119,861
                                                              --------------

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  $      368,115
                                                              ==============



               PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
         RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO PRIMUS
                   TELECOMMUNICATIONS GROUP, INCORPORATED
             TO ADJUSTED EBITDA AND NORMALIZED ADJUSTED EBITDA
                               (in thousands)
                                (unaudited)

                              Three Months    Three Months    Three Months
                                  Ended           Ended           Ended
                              September 30,     June 30,      September 30,
                                  2012            2012            2011
                             --------------  --------------  --------------
NET INCOME (LOSS)
 ATTRIBUTABLE TO PRIMUS
 TELECOMMUNICATIONS GROUP,
 INCORPORATED                $      (25,037) $       68,859  $      (10,010)
Share-based compensation
 expense                                962           2,355             740
Depreciation and
 amortization                         7,517           7,830           8,630
(Gain) loss on sale or
 disposal of assets                     131               -              53
Interest expense                      6,325           6,894           7,576
Accretion on debt (premium)
 discount, net                           55              58              55
(Gain) loss on early
 extinguishment or
 restructuring of debt               21,083               -           6,853
Interest and other (income)
 expense                                 26            (142)         (2,203)
(Gain) loss from Contingent
 Value Rights valuation                (235)         (2,039)        (11,367)
Foreign currency transaction
 (gain) loss                         (2,834)          1,552           5,366
Income tax (benefit) expense            (43)            408             (34)
Income (expense)
 attributable to the non-
 controlling interest                  (307)            183             457
(Income) loss from
 discontinued operations,
 net of tax                           2,459          20,162           4,882
(Gain) loss from sale of
 discontinued operations,
 net of tax                               -         (98,666)              -
                             --------------  --------------  --------------

ADJUSTED EBITDA              $       10,102  $        7,454  $       10,998
  Severance, integration and
   other non-recurring items          1,024           2,627            (748)

                             --------------  --------------  --------------
NORMALIZED ADJUSTED EBITDA   $       11,126  $       10,081  $       10,250
                             ==============  ==============  ==============



               PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
   RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
                             TO FREE CASH FLOW
                               (in thousands)
                                (unaudited)

                              Three Months    Three Months    Three Months
                                  Ended           Ended           Ended
                              September 30,     June 30,      September 30,
                                  2012            2012            2011
                             --------------  --------------  --------------

NET CASH PROVIDED BY (USED
 IN) OPERATING ACTIVITIES    $        7,675  $       (1,849) $       11,006
Net cash used in purchase of
 property and equipment              (6,408)        (10,616)         (8,909)
                             --------------  --------------  --------------

FREE CASH FLOW               $        1,267  $      (12,465) $        2,097
                             ==============  ==============  ==============



               PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
              RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS
                             TO ADJUSTED EBITDA
                               (in thousands)
                                (unaudited)

                                              Three Months    Three Months
                                                  Ended           Ended
Data Center                                   September 30,   September 30,
                                                  2012            2011
                                             --------------  --------------

INCOME (LOSS) FROM OPERATIONS                $        2,829  $        3,257
Depreciation and amortization                           435            (145)
                                             --------------  --------------

ADJUSTED EBITDA                              $        3,264  $        3,112
  Severance, integration and other non-
   recurring items                                        -               -

                                             --------------  --------------
NORMALIZED ADJUSTED EBITDA                   $        3,264  $        3,112
                                             ==============  ==============



               PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
              RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS
                             TO ADJUSTED EBITDA
                               (in thousands)
                                (unaudited)

                                              Three Months    Three Months
                                                  Ended           Ended
North America Telecom                         September 30,   September 30,
                                                  2012            2011
                                             --------------  --------------

INCOME (LOSS) FROM OPERATIONS                $        2,721  $        2,163
Depreciation and amortization                         7,081           8,773
(Gain) loss on sale or disposal of assets               131               -
                                             --------------  --------------

ADJUSTED EBITDA                              $        9,933  $       10,936
  Severance, integration and other non-
   recurring items                                      601            (748)

                                             --------------  --------------
NORMALIZED ADJUSTED EBITDA                   $       10,534  $       10,188
                                             ==============  ==============

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Investor Contact:
PTGi
Richard Ramlall
SVP Corporate Development and Chief Communications Officer
703-748-8050
[email protected]

Lippert/Heilshorn & Assoc., Inc.
Carolyn Capaccio
212-838-3777
[email protected]

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A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...