Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (53888)	4/26/2003 2:52:37 PM
From: Eric L	Read Replies (1) \| Respond to of 54805

Level 3 Communications (LVLT) A Comms player I am watching ... >> Level 3 Still In Acquisition Mode As Sales Grow 25/04/03 Tim Marshall telecomtv.com Level 3 Communications yesterday reaffirmed its belief that capacity sales have bottomed out and should begin improving, announcing first quarter revenues almost triple those of Q1 last year and stating that it will continue scouting for value acquisitions as the bandwidth business begins to find its feet. Boosted by acquisitions such as that of the Genuity network and managed web hosting business, Level 3 posted Q1 2003 revenues of US$1.25 billion, up from $945 million in the fourth quarter 2002 and $386 million in the same period last year. The company posted a net profit of $119 million. Level 3 has been a determined campaigner throughout the collapse in the global networks business, avoiding Chapter 11 bankruptcy protection and positioning itself strongly to capitalise on the demise of other players. Last year the company shocked the industry by securing a $500 million war chest from investors including legendary value-buyer Warren Buffett while the company was quick to strip its business of less profitable operations and business units in a bid to focus its business and improve group margins. According to Level 3 CEO James Crowe, that activity is beginning to make its mark on cash flow and while sales cycles continue to be longer than desired, growth is now a genuine possibility. “We continue to believe that we reached a bottom in terms of new sales levels during the middle of 2002, and are cautiously optimistic that we will continue to see gradual improvements,” Crowe said. For the three months to March 31 2003, Level 3 posted communications revenues of $708 million, versus $273 million for the previous quarter, significantly boosted by the Genuity acquisitions. And according to Crowe, more acquisitions could be on the way for Level 3, telling journalists that the company was faced with more opportunities than ever before. “We believe we are positioned to realize significant cost synergies, after a successful integration of the Genuity business, resulting in further improvements in cash flow," he said. "We are focused on long-term value creation by improving consolidated free cash flow through recurring revenue growth and new product development, as well as opportunistic acquisition activity." Level 3 is also continuing the process of stripping non-core assets recently announcing the off-load of its road tolls business as well as the sale of Genuity’s managed web hosting business to Computer Sciences Corporation. Where communications sales have improved, its information services arm continue to drag on the company’s figures. << - Eric -