Level 3 Communications in Broomfield had higher revenues in the second quarter but posted a loss, the company said Tuesday.
The net loss was $201 million, or 23 cents a share, on sales of $1.53 billion, Level 3 said. The company lost $188 million, or 27 cents a share, a year ago while sales reached $894 million.
The fiber-optic network company’s revenue increase during the quarter was helped by sales by WilTel Communications, a regional network provider in Tulsa, Okla., that was bought by Level 3 in December.
Level 3 has bought five regional networks around the country for close to $2 billion since last October. It also said recently it would sell Software Spectrum, its software arm, for $287 million in cash to concentrate more on its core business.
Expenses to integrate the new companies into Level 3’s operations – estimated at $55 million – have been lower than expected so far, said Sunit Patel, the company’s chief operating officer. Integration expenses for WilTel, the largest purchase, stand at $30 million, he said.
Merrill Lynch analyst David Janazzo wrote in a report Tuesday that Level 3 has made progress with its acquisitions.
“We expect Level 3 to pursue acquisitions in order to expand its metro network as well as to consolidate the long-haul communications business,” he wrote.
Earnings were pretty much in line with expectations, said Donna Jaegers, a telecommunications analyst at Janco Partners in Greenwood Village.
Bloomberg News contributed to this report.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
