Qwest Restates 2000, 2001 Results - TheStreet

Qwest

(Q)

will downwardly restate its revenue for 2000 and 2001 by $2.2 billion, saying an analysis of transactions including capacity swaps in those years necessitates the larger-than-forecast revision.

The company said it had incorrectly booked $1.33 billion of revenue in 2001 and $889 million in 2000, lowering its actual revenue for 2001 to $18.37 billion and for 2000 to $15.72 billion.

Qwest's use of and accounting for transactions in which it swapped network capacity with other carriers is being investigated by the

Securities and Exchange Commission

and Justice Department. The restatements disclosed Wednesday relate mostly to one-time sales of equipment as well as adjustments from billing errors and other revenue recognition problems.

Qwest is scheduled to report earnings next week. Its stock closed at $4.17 Tuesday, down 7 cents.