Nextlink losses widen in 4Q

Broadband communications services-provider Nextlink Communications, Inc. (Nasdaq: NXLK), reported a net loss Tuesday of $1.57 a share in its fourth quarter.

First Call's consensus estimate called for a loss of $1.47 a share. However, it wasn't immediately clear whether First Call's estimate included charges.

Shares closed at 96 7/8 Monday, continuing their steep ascent. In January 2000, Nextlink and Concentric Network Corporation (Nasdaq: CNCX) agreed to merge to combine Nextlink's network assets with Concentric's business-grade DSL and Web hosting business. The transaction, valued at approximately $2.9 billion, is expected to close in the second quarter of this year.

The company accelerated the installation of access lines, adding 78,881 access during the quarter, a 21 percent increase over net access lines installed in the third quarter of 1999, losses also accelerated.

Fourth quarter EBITDA loss (operating loss before depreciation, amortization and deferred compensation expense), adjusted to exclude a restructuring charge, was $59.4 million, compared to $42.3 million in 1998's fourth quarter. For 1999 the EBITDA loss was $214.2 million, compared to a $140.9 million loss in the comparable period of 1998.

In the fourth quarter, Nextlink recorded a $30.9 million non-recurring restructuring charge for costs associated with relocating its Bellevue, Washington headquarters to Northern Virginia. About $28.0 million of the total charge resulted from stock option compensation for employee severance. Including all charges, Nextlink lost $210 million, or $1.57 a share.

The company said it plans to further increase speed and capabilities in all areas of our business beyond current levels.

Revenue was up 20 percent to $90 million in the fourth quarter compared to the third quarter and up 108 percent compared to last year's fourth quarter. Nextlink's core services revenue, consisting of bundled local and long distance, as well as dedicated services, reached $74.8 million in the fourth quarter of 1999, up 26 percent over the third quarter

For the year, revenue climbed 96 percent to $274.3 million, compared to $139.7 million reported in 1998. Core services revenue for the full year 1999 totaled $217.1 million, over 183 percent higher than core services revenue reported in 1998.