Level 3 Comm. Loss Narrows On Lower Costs - Update

(RTTNews) - Facilities-based communications service provider Level 3 Communications Inc.(LVLT), said Wednesday its second-quarter loss narrowed from a year ago, helped mainly by lower expenses, offsetting a decline in revenues.

The Broomfield, Colorado-based company posted a quarterly net loss of $24 million or $0.11 per share, compared with a net loss of $62 million or $0.29 per share last year.

Results for the quarter included $21 million of severance charges, partly offset by foreign currency and other gains of $14 million.

Sixteen analysts, on average, polled by Thomson Reuters expected a loss of $0.08 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter slid to $1.57 billion from $1.59 billion in the prior year. Thirteen analysts had a consensus revenue estimate of $1.59 billion for the quarter.

At its key Core Network Services segment, revenues grew 2.4 percent year-over-year, with growth in North America and Latin America. Wholesale Voice Services and other revenue, meanwhile, declined.

Results were helped by gross margin that climbed to 60.6 percent from 59.1 percent last year.

Operating expenses for the quarter decreased to $1.43 billion from $1.45 billion, on lower amortization and selling costs. Other expenses were lower by $34 million.

For 2013, the company still expects Core Network Service revenue growth to be stronger when compared to the prior year.

The company's stock is trading at $22.37, up $0.51 or 2.33%, on a volume of 3.2 million shares on the NYSE.