Focal beats the street

(Telephony) Focal Communications beat Wall Street estimates in reporting a net loss of $34.2 million, or 56 cents per share for its fourth quarter. Consensus analyst estimates for the quarter predicted the company would post a 62-cent loss.

Revenue for the quarter was $67.4 million. For the year, Focal reported revenue of $234 million, comprised mostly of data services, which accounted for $159 million of the total. The company posted a net loss for the year of about $106 million, or $1.75 per share.

While the company soundly beat Wall Street expectations, its net loss of $34.2 million was an increase from the $29.5 million net loss reported for the third quarter of 2000.

“We reported record revenues for 2000 of $234 million. This was an 85% increase over ’99,” said Robert Taylor, president and CEO of Focal. “We are now well past our [earnings before interest, taxes, depreciation and amortization] loss inflection point and expect to turn EBITDA positive this year.”

For 2001 the company reiterated its financial guidance of revenue between $375 million and $400 million, gross margins of 55% to 60% and an EBITDA margin of 0% to 5%. During the first quarter the company expects revenue to be between $74 million and $77 million.