Global Crossing To 'Affirm' Upside Guidance Wed, CEO Says
By JOHNATHAN BURNS
NEW YORK -- Global Crossing Ltd. (GBLX) Chief Executive Leo Hindery Jr. said the company will "affirm guidance on the upside" in a conference call Wednesday morning with analysts and investors.
Hindery, saying he wanted to be fair to shareholders, wouldn't discuss specifics.
After the market close Tuesday, the Hamilton, Bermuda-based telecommunications company said its first quarter loss from recurring operations was $279.4 million, or 36 cents a share, compared with $151.7 million, or 20 cents a share, in the fourth quarter.
Including non-recurring expenses, the company posted a loss of $307.4 million, or 39 cents a share during the first quarter.
A First Call survey revealed analysts had expected the company to post a loss of 43 cents a share.
Hindery said the most telling measurement of the company's performance during the first quarter was its adjusted earnings before interest, taxes and depreciation from recurring operations, which swelled 23% sequentially to about $401.2 million from $325.4 million.
"Most analysts had expected us to be in the $370 million to $375 million range," he said. "I think we exceeded expectations in every sense."
Revenues were $1.12 billion, up 5% from the fourth quarter's $1.06 billion, as telecommunications revenue grew 7% to $860 million from $803 million. Data revenue now makes up 51% of telecommunications revenue, which helped raise margins to 31.2% from 28.8% the quarter before, Hindery said.
He wouldn't comment on the company's plans for its incumbent local exchange carrier business, which offers local phone service in 13 states, with half of its operations in the Rochester, N.Y., area.
The company said Monday it has retained Chase Securities Inc. and Merrill Lynch & Co. (MER) to help review its options for the nation's 10th-largest ILEC. The company is expected to sell the business.
Global Crossing is building a worldwide IP-based fiber optic network to facilitate data traffic.
Meanwhile, Hindery said the company expects its acquisition of IXnet Inc. (EXNT) to close in the middle or latter part of June.
"The assimilation of that has gone well," he said.
The acquisition, valued at roughly $3.8 billion, will add trading companies and financial institutions to Global Crossing's growing list of customers.
-Johnathan Burns; Dow Jones Newswires; 201-938-2020; johnathan.burns@dowjones.com |
