Rhythms NetConnections expects to meet analysts' top line projections in the third quarter.
After market close Monday, the DSL provider said it sees third quarter revenue ranging between $17 million and $18 million, in line with analyst estimates. First Call's survey of 15 analysts predicts loss of $2.28 per share for the third quarter ending Sept. 30.
An estimated third quarter loss ranging between $116 million and $119 million, before interest, taxes, depreciation and amortization, would also be roughly in line with analyst forecasts, Rhythms said.
Shares of Rhythms traded at 8.75 in afterhours activity on the Island electronics communications network, following the announcement. The stock closed Monday's regular trading at Monday's regular trading at 8.375, down 0.8125 for the session.
The company has enough cash to operate through the end of next year, said Catherine Hapka, chairman and CEO.
Rhythms expects to have to 45,000 to 47,000 subscriber lines by the end of September, a 45 to 50 percent improvement from the end of June. Rhythms said it would have had another 2,000 lines if not for a recent strike by Verizon (NYSE: VRZ) workers.
Final results for the Rhythms' third quarter are scheduled to be reported Oct. 24.>