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

To: Brasco One who wrote (13268)	8/9/2001 2:56:21 PM
From: Rob C.	Read Replies (4) \| Respond to of 15615

NEW YORK, Aug 9 (Reuters) - Credit Suisse First Boston said on Thursday its telecommunications analyst Dan Reingold had cut the price target on Global Crossing Ltd. <GX.N> to $5 from $14 and lowered financial forecasts for the years 2002-2007. Global Crossing last week posted a wider second-quarter loss, slashed its revenue growth outlook for the year, and said it would cut 2,000 jobs, or 15 percent of its work force. Reingold said Global Crossing's second-quarter results reflected "low-quality" revenues that were partly boosted by selling capacity on its communications network. CSFB last week downgraded the stock to "hold" from "buy." The firm on Thursday cut its estimate for 2002 cash revenues to $7.0 billion from $8.4 billion. It cut its forecast for 2002 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to $1.8 billion from $2.1 billion. It also cut its forecast for Global Crossing's 2002-2007 revenue compound annual growth rate to 12.2 percent from 15.7 percent, and cut the EBITDA compound annual growth rate to 14 percent from 18 percent. Global Crossing has said it is fully funded and expects to be free-cash-flow positive in late 2002, but CSFB said it does not agree with that outlook. CSFB said it believes Global Crossing will have a funding gap of about $80 million in 2003, rising to $400 million in 2004. It expects Global Crossing to become free-cash-flow positive in mid-2005. Shares of Global Crossing shed 9 cents, or 1.47 percent, to $6.02 in midday trading on the New York Stock Exchange. REUTERS Rtr 14:36 08-09-01 Copyright 2001, Reuters News Service