MCI Posts a Profit
Telecom giant
MCI
(MCIP)
turned a profit in the latest second quarter, reversing a year-ago loss, but revenue fell 10% from the same three-month period of 2004.
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For the second quarter ended June 30, the former Worldcom earned $64 million, or 19 cents a share, compared with a loss of $71 million, or 22 cents a share, a year ago.
Revenue for the quarter totaled $4.7 billion, down from $5.2 billion last year. Operating expenses fell to $4.6 billion, down 11% year over year.
"In the second quarter, we continued to launch next-generation products and services, improve customer service and realize results from our cost-reduction initiatives," Michael D. Capellas, MCI president and chief executive, said in a press release. "In the second half of the year, we will remain focused on executing in the marketplace and moving toward a timely completion of our merger with Verizon."
Analysts surveyed by Thomson First Call were expecting revenue of $4.6 billion in the second quarter.
Shares of MCI were up 19 cents to $25.50 in premarket trading Tuesday.
