360networks’ revenue decreases 74%

Long-haul carrier 360networks saw its revenue decline 74% year-over-year during the third quarter because of renegotiated contracts, the existing industry downturn and customers’ reluctance to sign purchase agreements with a bankrupt company. For the period ending September 30, the company’s revenue was $31 million, compared with $119 million for the same period in 2000.

The company reported an EBITDA loss of $35 million, compared to a positive EBITDA of $31 million for the third quarter of 2000. Net loss was $164 million, or 22 cents per share, down from a net loss of $51 million, or 6 cents per share, a year ago.

360networks filed for bankruptcy in June while struggling with $2.6 billion in debt and just $155 million in cash. The company says it has a cash balance of $165 million, is negotiating with potential acquirers and investors and has developed a standalone plan that requires no additional investment. The company plans to recommend a course of action to creditors by early nest year.

--Toby Weber, staff writer