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

To: David Lawrence who wrote (2848)	2/3/1999 12:58:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 6846

Qwest back in the black as sales soar-From CBS MarketWatch Say David we got a billion in contract and soaring sales and the stock moves a measly buck,what gives? ========================= Qwest back in the black as sales soar Phone carrier tops estimates, aided by data, Net demand By Jeffry Bartash, CBS MarketWatch Last Update: 10:12 AM ET Feb 3, 1999 Earnings Surprises DENVER (CBS.MW) -- Qwest Communications International shares rose Wednesday after the nation's No. 4 long-distance carrier gleaned a small fourth-quarter profit as strong demand for data and Internet services catapulted sales up 26 percent. Excluding charges, the so-called next-generation phone company (QWST) said it earned $10.4 million, or 3 cents a share, on a pro forma basis, a reversal from a loss of $4.8 million, or 1 cent, a year earlier. Qwest was expected to earn 2 cents a share, according to a survey of analysts by First Call Corp. Revenue jumped to $865.1 million from $685.2 million on a pro forma basis. Pro forma results take into account several large acquisition in 1998, including Qwest's $4.4 billion purchase of LCI International. Earlier Wednesday, the Denver-based Qwest announced it won a $1 billion, seven-year pact to provide advanced phone services to the U.S. Treasury Department, its biggest contract ever. Qwest wrested the contract away from the previous provider, Sprint (FON), beating out rivals AT&T (T) and MCI WorldCom (WCOM). Qwest shares rose 1 1/8 to 61 1/4 in recent trading. Demand for new services Qwest ramped up spending in 1998 to market its services, but those costs were more than offset by large gains in data and Internet service sales. On a pro forma basis, the company said revenue in those areas surged 60 percent from a year earlier. And data revenue jumped 20 percent from the 1998 third quarter, led by gains in ATM and frame relay revenue. Earnings before interest, taxes, depreciation and amortization -- a key indicator of financial health in fast-growing high-tech sectors -- climbed 55 percent to $148.3 million from $95.5 million on a pro forma basis. Including charges related to its acquisitions and the redemption of debt, Qwest recorded a net loss of $21.6 million, or 6 cents a share, in the latest quarter. That's down from net income of $12.3 million, or 6 cents, a year earlier. Qwest said it has finished construction on 12,500 miles of its U.S. fiber optic network and should complete its planned 18,500-mile network by midyear. The network will link more than 130 cities. The company is among several young, up-and-coming telecom operators -- Level One Communications (LEVL) is another -- building fiber-optic networks geared to carry voice, video and data information using packet-switching technology. "Through the acquisitions and partnerships we completed in 1998, we successfully transitioned Qwest from building a state-of-the-art network into a leading, Internet protocol-based multimedia company focused on the convergence of data, video and voice services," Chief Executive Joseph P. Nacchio said in a statement. Efficient packet-switching technologies such as frame relay and Internet protocol allows telecom lines to carry far more information at much lower costs than traditional circuit-based systems used by AT&T and the Baby Bells. Indeed, Internet protocol is expected to become the dominant standard of the future, and all the major phone companies are moving to modernize their networks. cbs.marketwatch.com