Level 3 Communications, Inc. (LVLT) January 05, 2012 2:10 pm ET Executives Sunit S. Patel - Chief Financial Officer and Executive Vice President Analysts Unknown Analyst Michael Rollins - Citigroup Inc, Research Division PresentationMichael Rollins - Citigroup Inc, Research Division
Good morning or good afternoon depending on where you are. For those joining us via webcast, I'm Mike Rollins, Telecom Analyst at Citi Investment Research and Analysis. We're going to continue our next fireside chat track with a focus on the wholesale and the enterprise segments of the telecom market with Level 3 Communications. I'd to welcome back Sunit Patel, Executive Vice President and Chief Financial Officer for Level 3. Sunit S. Patel Thank you. I'm happy to be here. Question-and-Answer SessionMichael Rollins - Citigroup Inc, Research Division Thanks for joining us. Maybe just to kick it off, you had a very busy year. Sunit S. Patel Yes. Michael Rollins - Citigroup Inc, Research Division Just closed recently the Global Crossing acquisition, and maybe you could just set the stage with some of -- any sort of key thoughts exiting 2011 and what your operational and strategic priorities are for 2012? Sunit S. Patel Yes, thanks, good place to start. So we're now 3 months into the transaction. We closed Global Crossing in early October, so we had early January. And I would say that at this stage, everything we talked about at the announcement and at the earnings release and what we see today has been consistent. We haven't seen anything that has surprised us as such. I think for all the integration planning that we went through has paid off as we sit here today with finishing our budgets for 2012 looking at everything. We can be or feel good about everything we talked about at the time of the announcement, whether it's synergy realization targets, timing of that, where we are from an integration perspective, it is probably worth a quick update. So in the past 3 months I would say we have organized the company, generally the organization's well defined right down to the bottom layers. Our sales people all know what customers they're going to be covering. We're kicking off our sales conference next week in Florida, the thousand-plus sales force, sales engineers, product managers. Commission plans are finalized. So those all will be communicators so I think -- and also similarly, our sales people will have visibility to combine company revenues by customer for the customers they are covering, contracts, pricing comparisons. So a lot of work has been done from that perspective at the sales force, which is the main thing, making sure that from a customer perspective and a customer-experience perspective, we are well organized to go to market. So I think all of that is going well. Now obviously the key -- back to your priorities for this year, the key now is execution. I think with all the planning has paid off dividends in terms of organizational clarity, the sales force being able to go to market, and now its execution both on cost savings, on synergies, on the SG&A side, on the CapEx side and on the access cost side. And I'd say that given that we just finished up budgets for 2012, I think everyone has a pretty clear idea what they have to achieve that they've generally bought into, what they have to achieve and signed up for. So we feel pretty good.