Level 3 reports third quarter results

Fiber Optics Weekly Update, Oct 29, 2004

Level 3 Communications Inc. announced its third quarter results. Consolidated revenue was $840 million for the third quarter, compared to $918 million for the second quarter 2004. Communications revenue was $423 million versus $391 million for the previous quarter, and information services revenue was $392 million, compared to $503 million for the previous quarter.

The net loss for the third quarter 2004 increased to $171 million, or $0.25 per share, compared to a net loss for the previous quarter of $63 million, or $0.09 per share. Included in the net loss for the previous quarter was a $147 million gain associated with the elimination of a capital lease obligation due to the termination of a vendor contract. Consolidated Adjusted OIBDA was $129 million in the third quarter 2004, which exceeded the projection of $100 million to $120 million and compares to $94 million for the previous quarter. Approximately $67 million in reciprocal compensation and $4 million of communications service revenue was recognized in the third quarter as a result of an agreement signed with a local carrier.

Level 3 is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America, and is the primary provider of Internet connectivity for millions of broadband subscribers through its cable and DSL partners. The company offers a wide range of communications services over its 22,500-mile broadband fiber-optic network, including Internet Protocol (IP) services, broadband transport and infrastructure services, co-location services, and patented Softswitch managed modem and voice services.

Visit www.level3.com to learn more.