posted a steeper third-quarter loss Monday as revenue continues to decline.
For its third quarter ended Sept. 30, the telecom services company lost $101 million, compared with an $80 million loss a year ago. Revenue fell 1% sequentially and 11% from a year ago to $617 million.
The company said latest-quarter revenue was derived 60% from carrier services, down from 62% in the year-ago period, while commercial services revenue rose to 40% from 37% a year earlier. The company last month rolled out a restructuring plan that will cut jobs and costs as Global Crossing seeks to focus more on higher-margin commercial deals.
"We continue to increase our margins as a result of cost of access initiatives and to shift our revenue mix with sales of higher margin products such as IP VPN and managed services," said CEO John Legere, pointing to the latest quarter's 30% gross margin, up from 27% a year earlier. "Examples of these sales were recently announced with new and renewal contracts for customers including
The Coca-Cola Company
, the world's largest confectionary company Arcor, Dutch research network
The company had unrestricted cash of $88 million at Sept. 30. Still, liquidity remains an issue.
Global Crossing, which emerged from bankruptcy less than a year ago, said last month it had
drawn down a $100 million bridge loan provided by its largest shareholder. That meant the company would need at least $40 million to get through the rest of the year and "substantially" more to continue operating next year.
On Monday, Global Crossing said the big shareholder, ST Telemedia, provided a final bridge loan drawdown of $25 million, boosting outstanding debt to $325 million. That money, along with a deferral until January on $15 million of interest otherwise due in December under existing loans, should provide adequate funding through year-end. Global Crossing continues to aim for a second refinancing next month that should give it funds for the longer term.
Early Monday, Global Crossing slipped 45 cents to $14.61.