NXTV cuts revenue outlook for 2001
siliconinvestor.com
NEW YORK, Jan 4 (Reuters) - Communications equipment maker
Next Level Communications Inc. on Thursday said it will have
a wider than expected loss for the fourth quarter and cut its
revenue growth outlook through 2001 due to lower sales to key
customer Qwest Communications International Inc. (NYSE:Q - news)
and slower-than-expected customer development in Korea.
Next Level (NasdaqNM:NXTV - news), which makes equipment
that turns traditional telephone lines into high-speed pipes
able to transmit television, data and voice services, expects
a fourth-quarter loss of 22 cents a share on revenues of $31
million. The estimate excludes a $9 million to $10 million
charge related to inventory revaluation.
Wall Street analysts had expected the Rohnert Park,
Calif.-based company to post a loss of 12 cents a share,
according to research firm First Call/Thomson Financial.
For full-year 2000 ended Dec. 31, Next Level expects a
loss of about 72 cents a share on revenues of about $150
million, an increase of 160 percent over 1999 levels.
Analysts had expected the company to post a loss of 63
cents a share in 2000.
Next Level expects quarterly revenues to grow sequentially
in 2001, but revenues will be below previous expectations.
It said it would provide specific guidance for 2001 during
its fourth quarter conference call on Jan. 24.
The news was released after the stock market closed. Shares
of Next Level lost 1/8 to close at $10-13/16 on Nasdaq,
well below its 52-week high of $202.
During the fourth quarter, Next Level said it expanded its
customer base to 92, compared with 27 customers a year ago.
The company provides VDSL (very high-speed digital
subscriber line) equipment to local telephone companies,
cable television operators foreign carriers.
Next Level, however, said it suffered from reduce sales to
its key customer Qwest in the quarter, but it said it
continues to have ``an excellent working relationship with
Qwest.'' Next Level also said it has been meeting Qwest's
demand to cut the costs of its products.
U S West Inc., the local telephone company Qwest bought
this summer, had been a big proponent of VDSL services and
had aimed to expand the service to about 10 cities. During
the Qwest-U S West merger, however, Qwest put those
expansion plans on hold until the cost concerns could be
addressed.
Qwest Chairman Joe Nacchio had said in October that the
company could offer VDSL services if the cost of the
products and installation could be reduced enough to make
VDSL profitable.
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