MCI Swings to Profit

The year-ago quarter was hit by a huge charge.
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MCI

(MCIP)

swung to a third-quarter profit Thursday, as the telco moves toward a merger with

Verizon

(VZ) - Get Report

.

For its third quarter ended Sept. 30, MCI made $271 million, or 82 cents a share, reversing the year-ago loss of $3.4 billion, or $10.65 a share. The year-ago quarter was hit by $3.5 billion worth of asset impairment charges. Latest-quarter results were lifted by a $164 million tax reduction.

Revenue fell 5% sequentially and 12% from a year ago to $4.5 billion.

"In the third quarter we continued to deliver on our strategy, launching new IP-based products and delivering industry-leading customer service," said Michael D. Capellas, MCI president and CEO. "With all U.S. federal and international regulatory approvals complete, we remain on track to close our merger with Verizon later this year or early in 2006."