WASHINGTON – Global Crossing Ltd. (GLBC) Wednesday posted a fourth-quarter loss on restructuring costs, and said it expects a steep drop in revenue this year and continued losses.
The international telecommunications network company posted a net loss of $28 million, compared with net income of $24.9 billion in the same period a year ago, when Global Crossing emerged from bankruptcy.
Revenue fell 16 percent to $573 million, as the company pulled back from some low-margin businesses such as consumer long-distance services to concentrate on higher-margin business services.
Global Crossing said that shift would cause 2005 revenue to fall 22 percent to 28 percent from 2004's total. It expects to lower costs and improve margins through 2005, but said operating earnings would not turn positive until the first half of 2006.
Global Crossing completed a $404 million debt refinancing deal in December, and said it had enough cash on hand to fund its business until the second half of 2006, when it expects to begin producing cash.