Level 3 Communications said Tuesday it posted another loss during the third quarter, taking its total loss for the year to more than a half-billion dollars.
The Broomfield-based company might not post a profit until 2010, according to one analyst’s estimate.
Level 3, which operates a global fiber-optic communications network, said it had a net loss of $138 million, or 12 cents a share, during the third quarter.
The company posted revenue of $875 million, including a one-time gain of $33 million from the sale of a software business unit. On average, 11 analysts polled by Thomson Financial expected the company to post revenue of $916 million.
In the third quarter of 2005, Level 3 had a net loss of $204 million, or 29 cents a share, on revenue of $799 million.
“We thought the results were very good,” said Jefferies & Co. analyst Jonathan Schild raut. “They were in line with what we expected.”
Schildraut forecast revenue of $875.5 million. He said he doesn’t expect the company to post a profit until 2010.
Since 2003, Level 3 has racked up more than $2.3 billion in net losses. Still, the company has spent billions in cash and stock on several acquisitions over the past year and announced plans last week to acquire industry peer Broadwing for roughly $1.4 billion. Analysts said Level 3 appears to be on schedule in integrating its newly acquired companies.
“They’re clearly executing on plan,” said Greg Mesniaeff, an analyst with Needham & Co. “Considering how much they have going on at the same time, they are actually managing their business rather well.”
Level 3 chief executive James Crowe on Tuesday highlighted the company’s 6 percent quarter-over-quarter growth of its core communications revenue and its improved gross margin, which rose from 53 percent to 57 percent.
Level 3 stock dropped 12 cents to close at $5.66 on Tuesday.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
