Fiber optic network operator Level 3 Communications Inc. said today its second-quarter revenue jumped 71 percent in the wake of this year’s acquisitions while special charges helped deepen the net loss.
For the quarter ending June 30, the company reported a $201 million net loss, or 23 cents a share, compared with $188 million, or 27 cents per share, in the previous second quarter. Consolidated revenue was $1.53 billion compared with $894 million in the previous quarter.
Its communications business reported $819 million in revenue, up from $371 million, a boost that was helped by the acquisition of WilTel Communications, among others, the company said. Information services business reported $695 million, up from $504 million.
The company cut its depreciation expense by $18 million after recalculating the depreciation formula for optical fiber. It reported a loss of $55 million, or 6 cents per share, for the restatement of Level 3 Financing Inc.’s $730 million credit agreement.
Analysts surveyed by Thomson Financial had forecast a net loss of 21 cents a share for the quarter on revenue of $1.35 billion.
Level 3 shares dropped 35 cents, or 8 percent, to $4.01 a share in early trading on the Nasdaq Stock Market. “The strength of our business in the first two quarters of this year bodes well for the balance of 2006 and beyond,” Level 3 Chief Executive Officer James Crowe said in a statement.
Based in suburban Broomfield, Level 3 has a 23,000-mile broadband fiber optic network. It provides wholesale dial-up service to Internet service providers and Internet connectivity for broadband subscribers in the United States and Europe.
