Feb 1, 2002 : Qwest Posts Major Losses
📅 - Voice and data services company Qwest Communications International Inc. posted on Tuesday a fourth-quarter loss onrevenues, which were lower than expected.
Citing an overall weak economy, sales and lowered sales for telephoneservices and high-speed fiber optic capacity, the company reported a netloss of $516 million, or 31 cents a share, compared with net losses of $116million, or 7 cents a share, a year previous. This compared with a profit of16 cents last year.
For the year, the company recorded pro forma normalized earnings per dilutedshare of 5 cents compared to 59 cents for 2000.
The loss in the fourth quarter of 2001 reflects an after-tax charge of $367million or 22 cents per diluted share, due primarily to restructuringactions that included layoffs, real-estate consolidation and otherstreamlining initiatives. In addition, reported results includerestructuring charges and other one-time items, plus write-downs for certainequity investments. The after-tax impact of these non-operating expenses was$26 million or 2 cents per diluted share.
For the year, on a reported basis, Qwest reported a net loss of $2.41 perdiluted share, compared to a loss of 6 cents per diluted share in 2000.
DSL, wireless and Internet services continue to be key growth products.Total DSL customers at the end of the year increased nearly 74 percent fromthe end of 2000 to 448,000. Wireless services revenues for the quarter grewapproximately 42 percent to $211 million with 1.11 million customers atyear-end. For the quarter, recurring Internet services revenue increased 30percent to $287 million compared with the same period last year.
"Our overall performance continues to be impacted by economic conditionsnationally and in our local service region, but we are encouraged with theprogress made in some of our key growth areas, including global enterprise,DSL and wireless," stated Joseph P. Nacchio, Qwest chairman and CEO.
Reported revenue for the quarter was down approximately six percent to $4.70billion, down $314 million from $5.02 billion in the same period last year.The decrease in revenues for the quarter was mainly due to reduced opticalcapacity asset sales and certain Internet equipment sales. For the fullyear, reported revenue increased approximately four percent to $19.74billion compared with pro forma normalized 2000 revenues of $18.95 billion,or approximately 19 percent compared to 2000 reported revenues of $16.61billion.
The workforce reduction of 7,000 jobs that was previously announced isexpected to be completed by mid-2002.
Citing an overall weak economy, sales and lowered sales for telephoneservices and high-speed fiber optic capacity, the company reported a netloss of $516 million, or 31 cents a share, compared with net losses of $116million, or 7 cents a share, a year previous. This compared with a profit of16 cents last year.
For the year, the company recorded pro forma normalized earnings per dilutedshare of 5 cents compared to 59 cents for 2000.
The loss in the fourth quarter of 2001 reflects an after-tax charge of $367million or 22 cents per diluted share, due primarily to restructuringactions that included layoffs, real-estate consolidation and otherstreamlining initiatives. In addition, reported results includerestructuring charges and other one-time items, plus write-downs for certainequity investments. The after-tax impact of these non-operating expenses was$26 million or 2 cents per diluted share.
For the year, on a reported basis, Qwest reported a net loss of $2.41 perdiluted share, compared to a loss of 6 cents per diluted share in 2000.
DSL, wireless and Internet services continue to be key growth products.Total DSL customers at the end of the year increased nearly 74 percent fromthe end of 2000 to 448,000. Wireless services revenues for the quarter grewapproximately 42 percent to $211 million with 1.11 million customers atyear-end. For the quarter, recurring Internet services revenue increased 30percent to $287 million compared with the same period last year.
"Our overall performance continues to be impacted by economic conditionsnationally and in our local service region, but we are encouraged with theprogress made in some of our key growth areas, including global enterprise,DSL and wireless," stated Joseph P. Nacchio, Qwest chairman and CEO.
Reported revenue for the quarter was down approximately six percent to $4.70billion, down $314 million from $5.02 billion in the same period last year.The decrease in revenues for the quarter was mainly due to reduced opticalcapacity asset sales and certain Internet equipment sales. For the fullyear, reported revenue increased approximately four percent to $19.74billion compared with pro forma normalized 2000 revenues of $18.95 billion,or approximately 19 percent compared to 2000 reported revenues of $16.61billion.
The workforce reduction of 7,000 jobs that was previously announced isexpected to be completed by mid-2002.
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