Level 3 says it has enough funds to last into 2004
--------------------------------------------------------------------------------
PHILADELPHIA, July 6 (Reuters) - Level 3 Communications
Inc. , which provides high-speed communications
services to businesses, said on Friday it believes it has
enough money to fund its operations into 2004, disputing a
media report suggesting it may face bankruptcy.
"The company believes that the combination of available
cash and future revenues provides sufficient funds to achieve
free cash-flow breakeven, projected to occur at the beginning
of 2004," Level 3 said in a release.
The company said it had about $4.5 billion in cash and
available liquidity at the end of the first quarter. It also
expects to generate communications cash revenue of $2.1 billion
in 2001.
"The current market volatility in the telecommunications
industry may continue to affect Level 3's stock and bond
prices. However, the company believes that, at current levels,
they do not accurately reflect Level 3's future prospects or
the underlying value of its assets," the company said.
Shares of Broomfield, Colorado-based Level 3 closed at
$4.51, down 29 cents on Nasdaq. The stock has lost about 95
percent of its value in the past year.
Level 3 is one of many emerging communications companies
that have been hurt by the weak economy. The shakeout in the
technology sector also forced many of its corporate, Internet,
and telecommunications customers to disconnect service.
Last month, the company cut its financial targets through
2002 and said it would cut about 1,400 jobs, or 24 percent of
its work force, due to the slowing economy and delayed
purchases by customers. It was the second time in three months
that Level 3 announced layoffs and lowered its growth outlook.
The company recently slashed its spending plans and said it
has changed strategies to focus on larger and more financially
stable customers rather than targeting upstarts with partially
funded business plans.
REUTERS
Rtr 18:27 07-06-01 |
