XO down for Q4, up for '05

XO Communications reported higher revenue and lower losses for 2005, although its fourth quarter revenue was down, both sequentially and year-over-year.

In its first full year of operation following the acquisition of Allegiance Telecom, XO earned $1.43 billion in revenue, up from $1.3 billion in 2004. Its consolidated net loss was $146.5 million, compared with $405.5 million for the prior year.

For the fourth quarter, however, XO revenue was $351.3 million, down from $358.7 million in the third quarter and $369.4 million in the fourth quarter of 2004. The consolidated net loss was $43.5 million, up from the $30.6 million loss in the third quarter, but down from the $271.4 million reported a year ago.

XO is still in the process of re-inventing itself as a broadband wireless company, once pending legal issues are resolved. The company is selling its national wireline business to a wholly own subsidiary of its primary investor, Carl Icahn, for $625 million in cash and the assumption of $75 million in debt. XO will then become a fixed broadband wireless service provider, using the spectrum it owns in the 28 GigaHertz to 31 GHz spectrum in 70 U.S. metro markets.

The national wireline company will retain the XO brand name. Earlier this week, the company announced a new IP voice origination service, targeting broadband service providers, cable companies and others with a service that provides transport and origination of local calls nationwide through a single IP connection on the XO IP network.