Level 3 Wary of VOIP Regulation
Level 3 announced that it has swung to a positive cash-flow in its third quarter, but it warned that hurdles around VOIP regulation need to be settled swiftly and fairly in order for the market to blossom (see Level 3 Reports Q3 Loss). The company reported a net loss for the quarter of $247 million, or 38 cents a share, compared with a loss of $299 million, or 73 cents a share, a year earlier. Revenues totaled $874 million, in line with its recently reduced guidance, but below its year-ago revenues of $1.05 billion.
The company said it cut 380 positions, or 21 percent of the work force during the quarter, which helped it achieve the $40 million in cash flow against a year-ago $34 million outflow.
During its earnings call Thursday, one analyst raised concerns about potential VOIP regulations and how these might affect Level 3’s business going forward.
Get the full story on Boardwatch.
— Jo Maitland, Senior Editor, Boardwatch