Global Crossing gets mixed results in Q2

Global Crossing reported second-quarter results today that saw the service provider suffer a net loss despite higher revenues.

A net loss applicable to common shareholders totaled $101 million compared to $77 million in Q2 2006, while the company posted $547 million in consolidated revenue, up 19% from the same period last year.

Global Crossing also cut 250 full-time employees in the second quarter, resulting in $14 million in severance expenses. The company believes these cuts will generate gross savings of $30 million and net savings around $16 million after severance expenses in 2007.

“Through continued sales success and management’s actions in the second quarter, our business is gaining momentum as reflected in our improved financial performance worldwide,” said John Legere, CEO of Global Crossing, in a prepared statement. “The acquisitions of Impsat and Fibernet contributed as we anticipated during the quarter, giving us a glimpse into the full-blown synergies we’ll reap from these key parts of our business as we approach full integration.”

The company acquired Impsat Fiber Networks and Fibernet during the second quarter. Impsat contributed $50 million in revenue from May 9 to the end of the quarter -- mostly in Global Crossing’s “invest and grow” business. Total “invest and grow” revenue was $432 million, up 44% from Q2 2006.