Level 3 Reports Q4

BROOMFIELD, Colo. -- Level 3 Communications, Inc. (Nasdaq: LVLT) reported consolidated revenue of $846 million for the fourth quarter 2006, compared to consolidated revenue of $875 million for the third quarter 2006. For the full year 2006, consolidated revenue was $3.38 billion, compared to $1.72 billion in 2005.

The net loss for the fourth quarter 2006 was $237 million, or $0.20 per share, compared to a net loss of $138 million, or $0.12 per share, for the previous quarter. Included in the net loss for the fourth quarter was a $54 million loss on the extinguishment of debt, or $0.05 per share. Included in the net loss for the third quarter was a gain of $33 million associated with the sale of Software Spectrum, or $0.03 per share.

“Level 3 had a strong fourth quarter,” said James Q. Crowe, CEO of Level 3. “Organic core revenue growth was 8 percent during the quarter and 25 percent annualized for the full year 2006, which excludes the benefits of acquisition and termination revenue. This growth is a result of ongoing customer demand and a healthy industry operating environment. We expect these positive trends to continue in 2007.”

Consolidated Adjusted OIBDA(1) defined as Adjusted Operating Income Before Depreciation and Amortization was $189 million in the fourth quarter 2006, compared to $176 million for the third quarter 2006. Consolidated Adjusted OIBDA for 2006 was $682 million, compared to $471 million in 2005.

Level 3 Communications Inc. (NYSE: LVLT)