How the WSJ reports on GX:
May 10, 2001
Global Crossing Posts Wider Loss
In First Quarter, Citing Slowdown
By a Wall Street Journal Staff Reporter
Global Crossing Ltd. said its net loss widened during the first quarter, but the telecommunications company posted a 19% increase in revenue from the year-earlier period and beat Wall Street expectations on the size of the loss.
The Hamilton, Bermuda, company didn't change its 2001 guidance but Chief Executive Tom Casey declined to reiterate the outlook he gave three months ago of about 33% to 37% year-over-year cash-revenue growth. "We don't want to make predictions other than what we've already made," Mr. Casey said.
Global Crossing, which is building a world-wide undersea fiber-optic network, reported a first-quarter net loss of $675 million, or 76 cents a share, compared with a loss of $348 million, or 45 cents a share, a year earlier. The results include about $67 million of one-time items, such as a $54 million loss from discontinued operations and $4.6 million in merger-related costs.
Excluding one-time items, the company said it posted a loss of $608 million, or 69 cents a share, compared with a year-earlier loss of $270 million, or 35 cents a share, on an operating basis.
Wall Street was expecting a loss of 88 cents a share, according to analysts surveyed by Thomson Financial/First Call.
Revenue was $1.08 billion, up from $907 million for the period a year earlier.
Global Crossing, which is making a big push to sell voice and data services to corporate customers, said sales to those businesses increased 7% from the year-earlier period. A weakening economy is making it more challenging to sell services than the company had anticipated at the end of last year.
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