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.
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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
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