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.

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

To: tech101 who wrote (21)	3/15/2007 5:24:20 PM
From: FJB	Read Replies (1) \| Respond to of 70

Global Crossing sees robust 2007; shares rise Thu Mar 15, 2007 2:45 PM ET (Adds analyst, company comment; details) BANGALORE, March 15 (Reuters) - Telecommunications carrier Global Crossing Ltd. <GLBC.O> posted a wider quarterly loss but forecast a healthy 2007, sending its shares higher. The company, which emerged from bankruptcy in late 2003, expects full year revenue of $2.17 billion to $2.25 billion. Analysts are expecting $2.12 billion, according to Reuters Estimates. A key measure of profit, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), less non-cash stock compensation, is expected to be around $200 million to $225 million for 2007. "The stock is reacting more based on the guidance that they gave," Janco Partners analyst Donna Jaegers said by phone. In a research note to clients, Jason Armstrong of Goldman Sachs, said the EBITDA outlook was conservative which made sense after an aggressive 2006 forecast. Shares rose 11 percent to $28.99 in afternoon trade on the Nasdaq. RESULTS HURT BY TAX PROVISION Global Crossing posted a wider fourth-quarter loss, saying it was hurt by an increase in provision for income taxes. The net loss for the quarter was $90 million, compared with a loss of $80 million a year ago. Consolidated revenue rose 6 percent to $488 million from $462 million in the year-ago period. Analysts were expecting revenue of $482.4 million. "The longer-term story is attached to revenue and gross margin performance. The trajectory of each of these seems on track," Armstrong wrote. BUSINESS REFOCUSSING Global Crossing has been refocusing its business to a datacentric Internet Protocol model, Executive Vice President Dave Carey said by phone. The company has also been targeting larger enterprises. Carey said the company's focus are customers in the financial and technology sectors. Carey added that the company's customers include Goldman Sachs Group Inc. <GS.N> and Microsoft Corp. <MSFT.O>. But he said Global contributes just a small portion to their overall contract base. Jaegers noted that the company was in the midst of a turnaround. "They have gone from burning a lot of cash to generating a lot of cash," she said. "I think this should mark the last of bad quarters," she added. (Reporting by Dilipp S. Nag, John Tilak in Bangalore)