Global Crossing (GLBC) didn't staunch the red ink, but there were signs of improvement in the second quarter.

The Floral Park, N.J., telco posted a net loss of $77 million in the quarter ended June 30. That compares with a $109 million loss in the first quarter and a $76 million loss in the year-ago period.

Second quarter sales were $461 million, up from $456 million in the first quarter and down from $499 million in the year-ago period.

On an adjusted basis, Global Crossing's earnings before taxes and depreciation or EBITDA was a loss of $17 million, an improvement from the $27 million deficit a year ago.

Analysts were looking for a second quarter adjusted EBITDA loss of $19.5 million on sales of $465.9 million, according to Thomson Financial.

"We have performed for the past seven quarters leading to the achievement of our major goals, including generating positive adjusted EBITDA in June," CEO John Legere said in a press release Wednesday.

The improving EBITDA trends were encouraging to some investors.

"We've seen EBITDA losses go from $45 to $17. The implication is for a seriously positive run rate," says one hedge fund manager who is long the stock.

Global Crossing shares rose 52 cents, or 3%, to $15.67 in early trading Wednesday.