For Terremark Worldwide, the NAP's Miami-based owner, the picture isn't as pretty, however. For the year ended March 31, the company reported a loss of $57 million on revenues of $15.9 million. PricewaterhouseCoopers, Terremark's auditor, issued a letter for the second year in a row that raises doubts about the company's ability to continue as a "going concern" as it transitions from a real estate company to a technology company.
So will the telecom collapse claim another victim? Manny Medina, chairman and CEO of Terremark, remains optimistic -- in large part because business at the NAP is growing rapidly while Terremark's real estate revenues, by design, are declining. Revenues for the NAP of the Americas totaled $3.2 million for the year, with $1.9 million generated in the quarter ended in March. That was up 183% from the quarter ended Dec. 31, 2001. In the past six months, Medina has signed agreements to establish NAPs in S?o Paulo, Brazil, and Madrid, Spain. In both cases, partners in those countries will pay to build the NAPs, and Terremark will operate them. A deal for a NAP in Mexico is in the works. "The business at the NAP is flourishing," Medina says. "What you have is a fundamental product that is growing by leaps and bounds."
One focus of growth is the healthcare industry. This month, Terremark is launching a medical NAP, or MedNAP, that will be based at the NAP of the Americas and will serve hospitals, physician groups and other healthcare providers. Terremark is partnering with Conectron, a Miami software and healthcare solutions provider. MedNAP will provide healthcare organizations with a secure location to store and access medical records. Most important, it will provide a way to comply with a quickly approaching federal mandate that healthcare records be private and secure. The deadline for these requirements, known as HIPAA, is October 2003.
With the HIPAA impetus, Medina is optimistic about MedNAP. "The spectrum of clients is anywhere from a group of doctors to Medicaid for the state of Florida," he says. So far, Terremark has signed two customers that together manage approximately 150 physician practices. "We have the most secure infrastructure in the world," touts Medina. "We have the most connectivity."
TECH TALK
Cyber Security
The Bottom Line
Will U.S. businesses face a major cyberattack in the next 12 months? Almost half (47%) of IT professionals say an attack is likely, according to a recent survey of 602 IT pros by the Business Software Alliance. And one year after the Sept. 11 terrorist attacks, more than half (58%) of the IT pros believe that businesses have made strides, but 45% say that businesses still are not prepared.