Replies to post #1617 on LEVEL 3 (LVLT)

[LVLT]

Level 3 greatly lowers losses in Q2Denver Business Journal
Print Email Reprints RSS Feeds Add to Del.icio.us Digg This CommentsLevel 3 Communications Inc. increased its second-quarter revenue 3.6 percent from the same quarter in 2007 and sharply reduced its losses by limiting expenses, the company reported Thursday.

The Broomfield-based telecommunications network wholesaler reported losing $33 million, or 2 cents per share, on revenue of nearly $1.09 billion. That compared with losses of $202 million, or 13 cents per share, on revenue of $1.05 billion in the second quarter of 2007.

The company (NASDAQ: LVLT) cut its spending on infrastructure from $170 million in the second quarter of 2007 to $106 million in the quarter ended June 30, a 37 percent reduction that meant the company’s operations generated $4 million after months of losing money.

Level 3 CFO Sunit Patel announced that the company expected to be cash-flow positive or break even on operations for the rest of 2008 and be completely cash-flow positive for all of 2009.

That’s seen as an indication that Level 3 may have fixed problems integrating several companies it acquired between 2005 and early 2007.

Mike McCormack, an analyst with JP Morgan, wrote a note to investors saying Level 3’s cash-flow news was good, but the slowness of the company’s revenue growth should be a concern.

[NewMoney]

I think they actually want to buy
at this point. If they want to sell
for a loss then I'm glad thay are'nt
using my money.

Push the negativity and buy when it
comes down. This happens all the
time. Big funds are masters of it.

GLTA

[mr_bitterness]

Who wrote that? They gave slightly different numbers than most others I've read.
Also

LVLT said enterprise was growing nicely via upgrades but not in creating new solutions, I don't see that as a downside, esp. since once the economy picks up, enterprise should jump as those customers start adding brand new services.

They got an upside of more than 5% in their OIBDA estimate. Not good enough?

SBC gave an upside surprise which doubled their estimate. Again, was that not good enough?

Europe also gave them a surprise of +6%, with continued growth expected as I remember it.

AND positive free cashflow was expected to drop to 11-12% of revs for Q3, not for 08. Did I hear that incorrectly?

So let them sell. They'll be back driving it higher after their next round of estimates all get beat too.