Level 3 Communications Inc. announced its second quarter consolidated revenue was $918 million, up from the $899 million for the first quarter 2004. Communications revenue was also up slightly at $391 million, versus $389 million for the previous quarter. And information services revenue was $503 million compared to $494 million for the previous quarter.
The net loss for the second quarter 2004 decreased to $63 million or $.09 per share compared to a net loss for the previous quarter of $147 million or $0.22 per share. Included in the net loss for the second quarter was a $147 million gain, or $0.22 per share, associated with the elimination of $213 million in capital lease obligations due to the termination of a vendor contract. As of June 30, 2004, the company had cash and marketable securities of approximately $957 million compared to $1.1 billion at March 31, 2004.
"During the second quarter, we completed the launch of our consumer-oriented VoIP services and the expansion of our IP VPN service," says James Q. Crowe, CEO of Level 3. "We also began to see increasing acceptance of these new services in the marketplace along with significant customer interest. In addition, we commenced market trials with potential customers and received several contract awards for these new services."
During the quarter, the company announced two new consumer VoIP services aimed at cable operators, enhanced service providers, ISPs, IXCs and others who provide residential voice services to end-users. (3)VoIP Enhanced Local service is targeted at customers who currently operate their own switching infrastructure, but want to deploy residential voice services cost effectively with minimal involvement in local interconnection issues. HomeTone is a turnkey VoIP residential service offering local and long distance capabilities. Along with the features of (3)VoIP Enhanced Local service, HomeTone service also includes additional features such as voice mail, call waiting, caller ID, three-way conferencing, and end-user Web-based account management.
During the second quarter, the company expanded its offering of data networking services, including (3)Flex Network IP VPN, to channel partners and value added resellers in the U.S. and Europe. Additionally, Level 3 expanded its wide-area Ethernet, ATM and frame relay data networking offerings by adding new lower speed data services.
"Given our performance for the year so far and the progress we have made in launching our new services, we are confident that we can meet or exceed our previously issued projection for communications revenue, excluding termination revenue, of a high single-digit percent decline in 2004 versus 2003," says Crowe.
"Our market share gains during the second quarter in our service offerings and our initial successes with our new services give me confidence that our competitive advantages are being recognized by our customers and within the industry," he adds.
