DJ INTERVIEW: Level 3 Well Funded; No Staff Cuts Likely
03 Aug 06:07
HONG KONG (Dow Jones)--Broadband infrastructure provider Level 3
Communications Ltd said the group is currently well-funded and that going
forward it is unlikely to have more staff cuts.
Level 3 President (Asia), Steve Liddell, told Dow Jones Newswires Friday that
global staff cuts have been completed, and the group's financial condition
remains strong. The company "doesn't expect other changes of that nature".
The Colorado-based company announced earlier in June that it would cut 24% of
its global workforce of 5,900, of which 30 staff were from its Asian offices
including Hong Kong and Japan.
Liddell said the layoffs came as many of its bandwidth-intensive companies
cut their expenses due to the market downturn during the first and second
quarters, and this directly affected Level 3's business.
Level 3 Communications Ltd is the Hong Kong flagship of Nasdaq-listed Level 3
Communications Inc. (LVLT), and has been in operation in the city since
September last year.
Liddell said the group is still well funded amid the current shakeout of the
technology sector because it pre-funded its operations at a time when the
capital market was stronger.
He said the entire group has US$4 billion cash-on-hand that can last through
early 2004, by which time it expects to achieve free cash flow break-even.
For its operations in Hong Kong, Level 3 activated in June the first leg of
its North Asian undersea cable between Hong Kong and Japan.
The cable is part of a larger North Asian cable system that is jointly owned
by Level 3 and the FLAG Telecom consortium. It will connect Hong Kong, Japan,
Korea and Taiwan with Level 3's IP network in the U.S. and Europe.
The company said earlier the additional capacity on the new cable, called
Tiger, will result in a reduction of bandwidth prices, up to as much as 75%
below market price for its Hong Kong to Japan route.
Earlier inJuly, Level 3 Communications Inc. reported net loss of US$731
million for its second quarter of 2001, compared with a net loss of US$281
million in the year-earlier quarter.
-By Georgina Lee, Dow Jones Newswires; 852-2802-7002;
georgina.lee@dowjones.com
-0- 03/08/01 10-07G
(END) DOW JONES NEWS 08-03-01
06:07 AM |
