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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: rx4pain who wrote (9497)	12/13/2000 6:49:28 PM
From: jopawa	Read Replies (1) \| Respond to of 15615

I suspect if past is prologue we will see the same thing in Jan also: Goldman Analyst Sees Level 3 Raising 2001 Rev View Updated: Wednesday, December 13, 2000 03:29 PM ET NEW YORK (Dow Jones)--Level 3 Communications Inc.'s (LVLT, news, msgs) increased capital spending this year will lift revenue and margins for 2001 above current expectations, said Goldman Sachs analyst Frank Governali. In a Wednesday research note, Governali predicted Level 3 will raise its guidance for 2001 revenue and margins in January. In This Article Symbol Last Change LVLT 41.00 +2.68 Index Dow Jones 10794.44 +26.17 NASDAQ 2822.77 -109.00 "Yesterday, for the first time, the company confirmed that when it provides guidance for 2001 (likely in late January) it will point investors toward higher revenues and/or margins," he wrote. Level 3 Chief Executive Jim Crowe spoke at a Goldman conference in New York City Tuesday. Level 3's shift of capital expenditures planned for 2001 to this year will allow the company to sell more dark fiber than earlier anticipated, Governali wrote. The company's multiple conduit architecture lets it "sell as much dark fiber as the market will demand, at a price that has remained essentially unchanged over the past three years, about $1,500 per mile," he added. "Dark fiber sales generally produce gross margins and EBITDA margins of about 55% each." Governali said Level 3 is fully funded to free cash flow break-even, which he sees happening in 2005. The company has measures to minimize bad debt, which is in line with expectations, Governali wrote. Its network construction is on schedule, he added. Level 3 shares recently traded at $41.69, up $3.63, or 8.8% on volume of 6.9 million shares compared with the daily average of 4.3 million. Christine Nuzum; Dow Jones Newswires; 201-938-5172 christine.nuzum@dowjones.com