Level 3 Posts Loss, but Tops Estimates

Network provider

Level 3 Communications

(LVLT)

reported a loss in the first quarter amid continuing weakness in the telecom industry.

Level 3 lost $90 million, or 23 cents a share, including a $130 million gain from debt repurchases and a tax refund of $119 million. The company lost $535 million, or $1.45 a share, a year ago.

Excluding those items, Level 3 had a loss of $339 million, or 87 cents a share, in the first quarter. Analysts were expecting a loss of $1.12 a share, according to Thomson Financial/First Call.

Level 3's revenue fell 14% to $386 million from $448 million in the year-ago period. The company's sales came in above consensus estimates of $324 million, however.

Level 3 predicted second-quarter revenue of about $560 million, including $270 million from the communications business, $260 million from information services and $30 million from other sources.

"While we believe that the worst is behind us, there continues to be uncertainty regarding the timing and effect of the economic recovery on both the communications services industry and on enterprise information technology budgets," Level 3 said in a press release.

Shares of Level 3 closed up 6 cents, or 1.3%, at $4.55 on Tuesday.