Internet backbone provider Level 3 Communications said its Q1 2007 loss more than doubled to $0.44/share ($674 million) including a $0.29/share charge for debt refinancing. Revenue was up 28% to $1.06 billion. Analysts expected a loss of $0.22/share; MarketWatch says it isn't clear whether estimates included the debt-refinancing charge or not. Level 3 reiterated 2007 and 2008 guidance; it sees $1-1.045 billion in Q2 revenue -- trailing analyst forecasts of $1.05 billion. On January 3, 2007, Level 3 completed the $1.4 billion purchase of data, voice, and media solutions company Broadwing, which it said would help it reduce overlapping costs and expand its customer base. The company said it is ahead of schedule in its integration. CEO James Crowe played up the debt restructuring in the company's press release: "We are pleased with our results for the first quarter, particularly with the substantial progress we made in reducing and restructuring our long-term debt." Shares are down 2.9% to $6.00 in pre-market trading.
Sources: Press release, MarketWatch, AP, Wikipedia
Commentary: Level 3 Communications and the Internet Video Explosion • Will Level 3 Communications Take Market Share from Akamai? • Questioning Level3's Growth Potential
Stocks/ETFs to watch: Level 3 Communications Inc. (NASDAQ:LVLT). Competitors: AT&T Inc. (NYSE:T), Sprint Nextel Corp. (NYSE:S), Verizon Communications Inc. (NYSE:VZ), Akamai Technologies Inc. (NASDAQ:AKAM)
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