Metromedia Fiber Reaffirms Fourth-Quarter Outlook

Metromedia Fiber Network(MFNX Quote - Cramer on MFNX - Stock Picks), a fiber-optic network provider, reaffirmed its fourth-quarter revenue outlook and said it expects strong growth in 2001.

Metromedia reaffirmed its fourth-quarter revenue guidance of $57.5 million, up from $25.9 million a year ago. Two analysts polled by First Call/Thomson Financial expect $58 million for the quarter. The company expects 2000 revenue of $184.6 million, compared with $75.2 million, while analysts on average expected $183.2 million.

The company also said it sees 2001 revenue of about $475 million, as a result of long-term customer contracts, new business and the "accelerating strong demand" for fiber-optic infrastructure among communication carriers, businesses and government organizations. The projection would top analysts' expectations of $390.7 million for 2001.

In addition, Metromedia expects to post a loss before interest, taxes, depreciation and amortization of $145 million to $155 million in 2001. That figures assumes the closing of the SiteSmith acquisition in January 2001.

The White Plains, N.Y., company also said it received a $350 million credit facility from Citicorp USA to fund its current business plan to build 3.6 million fiber miles and about 1 million square feet of data center space by the end of 2004. Metromedia plans to file a shelf registration to raise up to $1.5 billion, but the company didn't detail any potential securities it might try to sell.

Shares of Metromedia recently rose 81 cents, or 6.2%, to $14 in Nasdaq trading.