360Networks posts $5 billion net loss for Q2

Bankrupt long-haul carrier 360Networks took a net loss of $5 billion--$6.13 per share--for the second quarter, during which it claimed negative $63 million in revenue.

The results were significantly worse than the net loss of $104 million--19¢ per share--posted for second quarter 2000 on $158 million in revenue.

Most of the loss was attributable to a $4.4 billion write-down on assets and the provisioning of $163 million in case bad debts are not paid. The company, which is operating under Chapter 11 protection, attributed the revenue decline to the renegotiation of “a number of dark-fiber contracts.”

Revenue of $102 million that previously had been posted has been reversed and replaced with revenue from the renegotiated contracts in accordance with GAAP (generally accepted accounting principles). According to the company, these adjustments include “some price revisions.”

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were a negative $399 million, a substantial drop-off from the positive $34 million posted in the year previous. The company posted an EBITDA loss of $29 million for the first six months, also a marked decline from the $51 million gain posted over the same period last year.

For the first six months of 2001, 360networks reported a net loss of $5.1 billion--$6.28 per share. It reported a net loss of $149 million--33¢ per share--for the first six months of 2000.

--Glenn Bischoff, senior news writer