Metromedia Fiber Network Inc. (Nasdaq: MFNX) was up 12 percent ahead of Tuesday's opening bell after it reported third quarter net loss was 17 cents a share, much narrower than First Call's prediction of 26 cents a share.
Shares in the company that deploys optical IP Internet infrastructure in metropolitan areas closed down 0.34 to 17.34 Monday, well below its 52-week high of 51.88. The stock got talked up recently, as analysts called weakness a "buying opportunity."
Revenue for the quarter ended September 30 increased 385 percent to $51.9 million, compared with $10.7 million for the quarter ended September 30, 1999.
The company reported a net loss of $95.3 million, or 17 cents a share, for the quarter ended September 30, 2000, compared with a net loss of $32.0 million, or 16 cents a share, for the quarter ended September 30, 1999.
Increased net loss was due to the amortization of goodwill when MFN elated bought AboveNet Communications, Inc., the additional debt acquired related to the issuance of notes in October and March 2000, and changes in accounting treatment.
The company securing several new contracts in the quarter to deploy optical networks and IP services for companies such as AOL (NYSE: AOL), DLJDirect (NYSE: DIR) and Datek.