Network Computing is part of the Informa Tech Division of Informa PLC
Accounting Writedown Leads To $3.4 Billion MCI Loss
McLEAN, Va. (AP) MCI Inc., one of the nation's biggest long-distance operators, lost $3.4 billion in the third quarter of 2004 due to a previously announced asset writedown of $3.5 billion, the company announced Thursday, but its core operating results were better than expected.
Excluding the one-time charge, the Ashburn, Va.-based company would have posted a profit of $121 million, or 16 cents a share, for the July-September quarter. Analysts surveyed by Thomson First Call had predicted a profit of 5 cents a share.
The company lost $55 million in the period a year ago when it was in bankruptcy and was known as WorldCom.
Quarterly revenue dropped 15 percent to $5.08 billion from $5.97 billion a year ago. But costs from continuing operations fell 16 percent to $4.46 billion from $5.28 billion a year ago.
The company has aggressively sought to cut costs in the last year, reducing its workforce from 59,000 at the beginning of the year to 41,000. Chief executive Michael Capellas said Thursday in a phone interview that the company has now met its targets for staff cuts.
Recommended For You
AI will be integrated into network operations sooner rather than later. Here’s how that transformation process will likely happen.
Developing and managing a network budget is hard work for network professionals, who often get hit with new projects that they know nothing about. Is there a better way to manage network spending?
Making the jump from outdated legacy technology to a more modern digital infrastructure will allow businesses to innovate at the speed and scale needed in today’s marketplace.