By Mairi Mallon Bermuda-based Flag Telecom expects this year to evolve from a subsea cable developer into a global network services company, according to its year-end report.

The company is one of the handful of concerns racing to link the world by cable. 360networks, the owners of TBI, as well as Bermuda-based Global Crossing, are also part of the race. The first to wire the world is expected to gain a substantial share of the market.

In an upbeat report, the company said it anticipated continuing growth in the demand for bandwidth and network services.

The leading independent global carrier said that revenues for the year were strong and that the fourth consecutive quarter of sequential growth in revenue was expected.

The release stated: "Continued growth in demand for bandwidth and network services was the driver behind the strong performance during the year.

The company has a net loss of $89.5 million in 2000, compared to a net loss of $10.7 million the year before. This translates into a net loss per share at 68 cents for 2000, compared to a net loss of 15 cents a share a year earlier.

The company made a net loss of $26.5 million for the last quarter of 2000, with a net loss per share at 20 cents. This compares to a net loss of $16.8 million or 24 cents a share the year before Cash revenues were $596.4 million for the full year, including the cumulative pre-sales on FLAG Atlantic-1.

Excluding FLAG Atlantic-1 pre-sales, cash revenues were $237.8 million.

Adjusted earnings before taxes for the full year was $506.4 million, including FLAG Atlantic-1 pre-sales.

Cash on hand at year end was $1.29 billion and current projects and network extensions are fully funded from cash, pre-sales and debt, the company said.

Andres Bande, Chairman and Chief Executive Officer of FLAG Telecom, said: "2000 has been a milestone year for FLAG Telecom; our successful IPO, public debt financing and consistent delivery of results are testament to the commitment and hard work of our management and employees.

"We have pursued our focused strategy of developing a global IP centric network leveraged by a growing range of value-added network services.

"We continue to demonstrate the translation of our strategy into financial success.

"Importantly, we are growing the business ahead of plan while controlling costs and minimising capital at risk.'' He added that continued expansion of the global network during the year has moved the company further towards our aim of offering customers seamless city-to-city connectivity (link-ups) worldwide by 2002-2003.

He added: "In 2001 we expect our evolution from a subsea cable developer into a global network services company to continue as we expand the range of advanced products and services we offer.'' Total assets as of December 31, 2000 increased to $3.1 billion, the large increase over year end 1999 being largely due to the development of FA-1 and proceeds received from the Company's IPO.

Cash on hand at the year end was $1.29 billion and total debt was $1.14 bilion, giving net cash of $150 million.