Global Crossing Ltd. (Nasdaq: GBLX) scored again Tuesday when it reported second-quarter net loss of $ 4 million, or 1 cent a share, on target with First Call's estimate with revenue higher than analysts' consensus.
Last month, the 2-year-old company won its battle with Qwest Communications Int. (Nasdaq: QWST) to acquire Frontier Corp. (NYSE: FRO), giving it a nationwide network to complement its undersea fiber-optic network.
Global Crossing shares jumped 5/8 to 40 5/8 Tuesday morning.
Second-quarter revenue was $190 million, compared to 1998's $110 million. Income was affected by $8 million of net non-recurring expenses, resulting in a reported net loss of $4 million, compared to 1998's net loss of $193 million, or 58 cents a share.
Strong revenues in the Atlantic indicate the demand for bandwidth to serve the international market, according to the company release. Global Crossing also said its customer base increased by 29 percent in the first half of 1999, and 82,400 kilometers of its planned 88,800 kilometer network have been either completed or placed under contract for construction. 14,300 kilometers are now in service.
Other events for the quarter include Global Crossing and U S West's Inc. 's (NYSE: USW) agreement to terminate plans to merge, resulting in U S West paying Global Crossing a termination fee of $140 million in cash, and returning 2.2 million shares of Global Crossing common stock at $62.75 a share. Africa ONE, builder of a fiber optic ring system around the African continent, contracted project management and construction to Global Crossing subsidiaries worth over $100 million. Global Crossing also completed its acquisition of the Global Marine business of Cable & Wireless
Two out of 4 analysts covering the stock rate it a "strong buy," according to Zacks Investment Research.