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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (30610)	7/11/2001 2:26:36 PM
From: Softechie	Respond to of 37746

Level 3 says it has enough funds to last into 2004 -------------------------------------------------------------------------------- PHILADELPHIA, July 6 (Reuters) - Level 3 Communications Inc. , which provides high-speed communications services to businesses, said on Friday it believes it has enough money to fund its operations into 2004, disputing a media report suggesting it may face bankruptcy. "The company believes that the combination of available cash and future revenues provides sufficient funds to achieve free cash-flow breakeven, projected to occur at the beginning of 2004," Level 3 said in a release. The company said it had about $4.5 billion in cash and available liquidity at the end of the first quarter. It also expects to generate communications cash revenue of $2.1 billion in 2001. "The current market volatility in the telecommunications industry may continue to affect Level 3's stock and bond prices. However, the company believes that, at current levels, they do not accurately reflect Level 3's future prospects or the underlying value of its assets," the company said. Shares of Broomfield, Colorado-based Level 3 closed at $4.51, down 29 cents on Nasdaq. The stock has lost about 95 percent of its value in the past year. Level 3 is one of many emerging communications companies that have been hurt by the weak economy. The shakeout in the technology sector also forced many of its corporate, Internet, and telecommunications customers to disconnect service. Last month, the company cut its financial targets through 2002 and said it would cut about 1,400 jobs, or 24 percent of its work force, due to the slowing economy and delayed purchases by customers. It was the second time in three months that Level 3 announced layoffs and lowered its growth outlook. The company recently slashed its spending plans and said it has changed strategies to focus on larger and more financially stable customers rather than targeting upstarts with partially funded business plans. REUTERS Rtr 18:27 07-06-01