Level 3 narrows loss on flat sales

BROOMFIELD, Colo. - Telecommunications provider Level 3 Communications Inc. said Thursday its third-quarter loss narrowed, beating Wall Street expectations.

The company lost $120 million, or 8 cents per share, in the three months ended Sept. 30 compared with a year-ago loss of $174 million, or 11 cents per share.

Analysts surveyed by Thomson Reuters expected a loss of 9 cents per share.

Revenue inched up to $1.07 billion, matching analysts' forecasts. Its revenue a year ago was $1.06 billion.

The company said sales in its core business of network and voice services rose 7 percent, which it credited to ongoing demand from Europe and regional U.S. carriers and wireless providers, but was offset by a decline in what it termed other communications services revenue.

Level 3 offers Internet access and data and voice-over-Internet services to residential and business customers.

Capital expenses declined from the second quarter, but the company didn't provide a comparable figure from last year's third quarter.

Similarly, cash burn as measured by free cash flow improved from the second quarter, to negative $4 million from negative $54 million, but no figure was provided for the third quarter a year ago.

Chief Executive James Crowe said Level 3's fiber-based network put it in good position to gain market share in the current economy.

Shares of Level 3 closed Wednesday at $1.23, near the bottom of their 52-week range of $1.18 to $4.48.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.