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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (2867)	6/18/2001 11:08:17 PM
From: SecularBull	Read Replies (1) \| Respond to of 3873

Level 3 cuts guidance and 1,400 jobs By Emily Bourne, Total Telecom 18 June 2001 Global communications service provider Level 3 said Monday it will cut 1,400 jobs across its global workforce. The company also cut is revenue projections for 2001 and 2002 and said it was refocusing to target more traditional enterprise customers. "The continuing slowdown in the economy is significantly impacting our business," said Level 3 CEO, James Crowe, in a statement. The company now expects negative EBITDA for 2001 of $420 million. Presenting its Q1 results in April, the company predicted EBITDA for the year would be minus $330 million. The Broomfield, Colorado-based company now expects a net loss for 2001 of $7.50 per share. The figure given in April was $7.25. Level 3 said it will refocus its sales force to target "established companies" rather than its traditional Internet-based customer base. At one point, around 88% of its customers were communications-intensive firms, as opposed to traditional enterprises and carriers. The company said it had a backlog of $5.3 billion at the end of Q1, 67% of which was from dark fiber and related services. Of the dark fiber backlog, 20% was from at-risk customers. Level 3 will cut 1,400 jobs, or around 24% of its 5,900 employees. This includes 820 in North America, 550 in Europe and 30 in Asia. The company currently employs 1,330 people in Europe. In addition, the company said it will continue to "evaluate other initiatives and develop contingency plans to further reduce cash expenditures, including project deferrals and monetization of certain non-core assets." The company last week denied reports that it was in talks to sell its European network and pull out of the region. CommunicationsWeek International had quoted senior sources as saying that Cable & Wireless was in line to buy the 4,750-mile network. Level 3 said it expects positive EBITDA of $200 million to $250 million in 2002, and $850 million to $950 million in 2003. The company expects to reach free cash flow breakeven in early 2004 (it previously predicted late 2003), and said it remains prefunded. Level 3 anticipates market recovery in late 2001, and said it has signed $60 million in wavelength service contracts over the past 90 days. The company expects Q2 results to be in line with previous projections. Its Q1 net loss of $535 million was better than expected.