Genuity/Conf Call-2: 2H Softness Seen In Some Units
01 Aug 11:30
By Peter Loftus
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Genuity Inc. (GENU) expects revenue in 2000 to rise 60%
from 1999, although revenue from certain business units will be lower than
expected, Chief Financial Officer Daniel O'Brien said Tuesday.
The Burlington, Mass., provider of Internet network services earlier reported
results for the second quarter ended June 30 that beat analysts' expectations.
Genuity lost 23 cents a share on a pro forma basis, assuming the conversion of
class B shares, narrower than the loss of 26 cents projected by analysts
surveyed by First Call/Thomson Financial. Second-quarter revenue rose 62% from
a year earlier to $268 million.
In a conference call, O'Brien said the company expects to post
lower-than-expected revenue from its network-access and data-transport
operations during the second half of 2000. He did not elaborate on the
company's expectations. But the company hopes to get enough revenue from other
areas, including Web-hosting and other services, to hit its growth target.
"Overall, although we see pluses and minuses in each segment, we see total
revenue growth of 60% for the year," O'Brien said.
Operating losses, however, will continue to mount. O'Brien expects Genuity's
earnings before interest, taxes, depreciation and amortization, or EBITDA, to
widen to their largest point in the fourth quarter, then begin narrowing until
they reach the break-even point in mid-2002. The company's gross profits to hit
break-even in mid-2001.
(MORE) DOW JONES NEWS 08-01-00
11:30 AM |
