Wednesday August 8, 9:08 am Eastern Time
Genuity loss widens, cuts work force
(UPDATE: Adds details in paragraphs 6-7)
WOBURN, Mass., Aug 8 (Reuters) - Internet services provider Genuity Inc. (NasdaqNM:GENU - news) on Wednesday reported a wider loss for the second quarter and said it had cut its work force by 16 percent.
The company reported a loss of $353.6 million, or 31 cents per share, compared with a year-earlier loss of $224.7 million, or 23 cents per share.
Including a special charge of $48 million for the layoffs, the pro forma loss per share was 36 cents in the latest quarter, Genuity said.
Analysts polled by Thomson Financial/First Call had expected, on average, a loss of 32 cents per share.
Genuity Chairman and Chief Executive Paul Gudonis said the company had reduced its work force by 16 percent because of the soft economy. The company previously said it planned a cut of 14 percent. The exact number of jobs cut was not immediately available.
Genuity also revised its financial guidance, citing the weak economy, most notably for IT purchasing. It said it now sees revenue for the full year 2001 of $1.2 billion to $1.25 billion, down from a previous forecast of $1.3 billion to $1.35 billion. But it maintained its forecast for a full-year loss of $1.30 to $1.35 per share.
It said third-quarter revenues are expected to be flat or up only in the low single digits from the second quarter. |
