Level 3 beats Q3 estimates, but Global Crossing acquisition widens losses

Level 3 Communications' (NYSE: LVLT) third quarter results were a bit of a mixed bag. The service provider surpassed Wall Street's revenue expectations, but its acquisition of Global Crossing contributed to wider quarterly losses.

Level 3 q3 2011 results

Click here for details of Level 3 earnings results.

For the quarter, revenue rose 4 percent to $947 million, beating estimates of $942.1 million.

Following the closing of its acquisition, Level 3 refinanced about $1.36 billion of Global Crossing's outstanding consolidated debt. The service provider reported a $207 million net loss, or $1.75 a share. This came after it adjusting for a 1 for 15 reverse stock split.

As part of its plan to integrate Global Crossing into its fold, Level 3 will conduct a series of layoffs.

Despite the losses, Level 3 did see revenue gains in total communications revenue and its core network services segments. For the third quarter, total communications revenue was $927 million, compared to $913 million for the second quarter 2011 and $895 million for the third quarter 2010.

Likewise, core network services were up during the third quarter, rising about 2 percent to $759 million from $744 million in Q2 2011, and an increase of approximately 7 percent compared to $707 million in the Q3 2010. Meanwhile, European core network services revenue rose about 5 percent sequentially and 7 percent year-over-year.

For more:
- see the earnings release
- Reuters has this article

Earnings summary: Wireline in the third quarter 2011

Related articles:
Level 3 extends wireless backhaul reach via 52Eighty partnership
FairPoint sues Level 3 for $6.2M in unpaid local network access charges
Level 3 brings Ethernet, dedicated Internet services to Texas DIR
Level 3 wraps up its Global Crossing acquisition

Suggested Articles

Zayo provides a key element to the project – a backbone fiber network that will link multiple rural markets.

The company is launching its first fiber connectors that are specifically designed to work with 5G small cells.

Veego Software, an Israel-based startup that uses AI to detect and fix problems in connected homes, announced its Home Scoring solution on Thursday.