Collazo noted that the AUCS contract has contributed more than $100 million in EBITDA over the three-year term of the contract, representing a strong return on Infonet's investment.
Declining AUCS revenue continued to adversely affect EBITDA growth during the third quarter.
We are defining `core revenue' as `non-AUCS' revenue because the Consulting, Integration and Provision (CIP) line and the Other Communications Services line includes some AUCS outsourcing revenue.
The individual defendants knew that disclosure of these problems with its AUCS
business would devastate Infonet's chances of going public which allowed Infonet to raise $1.
In addition, we expect to continue to convert clients from the AUCS
platform to the Infonet platform until the AUCS
Outsourcing revenue from the AUCS contract contributed 25% of last year's second quarter ($40 million), compared to only 8% during the second quarter of this year ($11 million).
The decline, primarily reflecting the expected loss of revenue from clients using the AUCS platform, masks a 20% increase in consulting, integration and provisioning revenue from clients using Infonet's core services.
The AUCS outsourcing contract contributed $11 million to revenue and $3 million to EBITDA in the second quarter of fiscal year 2003.
Collazo, "our relationship with AUCS is expected to have provided Infonet more than $450 million in revenue.
In addition, we expect to transition approximately 200 former AUCS clients to the Infonet network.
As expected, other communications services, almost 80 percent of which were composed of AUCS platform-related revenue in Q1 FY '02, declined 55 percent from $45 million to $20 million in Q1 FY '03.
Collazo said that he expects more than $25 million of AUCS platform-related (previously booked as other communications services) revenue to transition into core revenue during the second half of the year.