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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Hal Rubel who wrote (1812)	7/18/1998 9:40:00 AM
From: MangoBoy	Respond to of 6846

<< Is QWST expected to match shareholders earnings expectations? >> yes. mark --- Qwest Commun Puts 2Q Results In Line With Analysts' Views DENVER (Dow Jones)--Qwest Communications International Inc. expects to meet analysts expectations for the second quarter ended June 30. A First Call survey of eight analysts estimates the company's second-quarter loss at 10 cents a share. In a press release, the company said it will record charges of $800 million to $850 million, related to the acquisition of LCI International, that will reflect a purchased research and development writeoff. Also, up to $50 million of other merger-related charges will be record in the period, bringing the charge total to $850 million to $900 million. Qwest said a consensus of reports from financial analysts estimates its earnings before interest, taxes, depreciation and amortization, or EBITDA, at $17 million. Analysts also estimate quarter revenues at about $370 million. The company expects second quarter results to be in line with these expectations, based on applying purchase accounting. Under purchase accounting, second quarter results will reflect the full three months of Qwest operations and one month of LCI operations. Qwest will report second quarter results July 27. Qwest Communications said synergies from the company's merger with LCI International will be better than earlier projections. Qwest previously estimated cumulative 1998 through 2001 revenue synergies of $227 million, cost synergies of $1.16 billions and capital synergies of $288 million. Wednesday, Qwest estimated revenue synergies to be more than $300 million, resulting in EBITDA benefits in excess of $105 million. Capital synergies will now be more than $600 million and cost synergies are in line with previous estimates. Of these cumulative synergies, $75 million of operating synergies, which is revenue contribution and cost savings, and $70 million of capital synergies will be reflected in 1998 results. Eight analysts surveyed by First Call put the company's year loss at 15 cents a share. The LCI International acquisition is being acocunted for using purchase accounting and reflects the $800 million to $850 million in second quarter charges. These charges include a charge for the purchased research and development for EUnet International. As a result of the four acquisitions that closed through the latest second quarter, Qwest will amortize $250 million in developed technology over 10 years and $3.5 billion to $3.6 billion in goodwill over about 40 years.