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ICGX: Look Out Below! ICG Shares Plummet on Warning

Standby. ICG Communications (ICGX) is having technical difficulties.

Today, the company warned that its second half would fall far short of expectations, blaming network outages and other technical glitches. The company also added that it is in need of additional funding and was seeking help to explore strategic options.

The bottom line: ICG said combined third- and fourth-quarter revenue would come in at $300 million, well under its $400-million estimate. Hopes of second-half profitability are also gone. The company expects a $25 million loss before interest, taxes, depreciation and amortization, much lower than its estimated $60 million profit.

2001 will also prove to be quite an odyssey for ICG. Revenues have been slashed to between $700 million and $800 million from the predicted $1.4 billion. And, to make matters worse, the lowered expectations puts the company in breach of certain parts of its $200 million secured bank credit facility.

As expected, ICG can add stock price difficulties to its technical ones. The company was last off 52.8% to $1.88. Other companies in the sector were also lower.

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