Level 3 Net Loss Narrowly Beats Street in 2Q

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Level 3 Communications (LVLT) reported a second quarter net loss that slightly beat estimates, due mostly to sequential growth in its Core Network Services revenue.

The provider of fiber-based communications services reported a net loss of $169 million, or 10 cents a share, compared with a loss of $134 million, or 8 cents a share, in the same quarter last year, and narrowly beating average analyst estimates of 11 cents, according to a Thompson Reuters poll.

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The Colorado-based company posted second quarter revenue of $908 million, which beat the Street’s view of $908.8 million, but fell short from $942 million in the year-earlier period.

Level 3 CEO James Crowe said the company expected to see sequential growth in its Core Network Services revenue through 2010, which grew by approximately 1% last quarter, an increase for the third consecutive quarter. The boost in sales is a “good indicator of the improved performance” expected for the second half of the year, he said.

“Demand remains strong across our customer base,” Crowe said. “With our extensive local and long haul fiber-optic network, we believe we have the right network, services and resources to take advantage of these ongoing opportunities for growth.”

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