Earnings Roundup: XO Communications tops estimates

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XO Communications, Inc. (Nasdaq: XOXO), the broadband communications company formerly known as NEXTLINK/Concentric, said Monday net loss was $1.20 a share, slightly narrower than First Call's expected loss of $1.27 a share.

Shares were off 0.25 to 29.50.

The company lot $88.9 million before interest, taxes, depreciation and amortization, compared to an EBITDA loss of $55.6 million in the third quarter of 1999. Net loss of $1.20 a share was wider than the 64 cents a share lost in last year's third quarter, and the 95 cents a share lost in the previous quarter.

Total revenue grew to $224.3 million in the third quarter of 2000, up 59 percent over revenue reported in the second quarter of 2000, and a 199 percent increase over revenue reported in the third quarter of 1999.

In June 2000, XO completed a merger with Concentric Networks, which contributed to the increase in revenue over prior periods. Of the total revenue reported in the third quarter of 2000, $104 million was derived from voice services revenue, and $117.9 million resulted from data services. Other revenue for the third quarter of 2000 was $2.4 million. Financial results for the last 15 days of the second quarter and for the whole third quarter include operations of Concentric Networks.

The company said execution for the quarter was remarkable considering it is a transition time for the industry, and the Verizon work stoppage impacted many of Xo's largest markets.

  • Choice One Communications (Nasdaq: CWON) also reported results Monday. The voice and data telecommunications services company lost $1.50 a share in its third quarter. First Call's expected loss was for $1.52 a share.

    Shares were up 0.19 to 9.31.

    Revenue of $21.4 million was up 105 percent from second quarter revenue of $10.4 million and exceeded consensus analyst estimates. The company installed 28,755 net lines (pro forma) on switch in the quarter, compared with 18,635 lines installed in the second quarter.

    Gross profits were $3.8 million, or 17.7 percent of revenue, compared with $700,000, or 6.7 percent of revenue in the second quarter.

    EBITDA losses, excluding management ownership allocation charge and non-cash deferred compensation, were $21.4 million in the quarter. Five of the company's 24 markets were EBITDA positive for the quarter.

    The loss per share was $1.50 in the third quarter, including non-cash expenses totaling $28.6 million in the quarter, or 80 cents per share.

    Third-quarter financial results include 2 months of results from US Xchange, which was acquired on August 1, 2000.