Williams reports mixed bag during transition

(Telephony) Williams Communications Group reported fourth-quarter revenues from continuing operations totaling $287 million, up $77.7 million from the third quarter and $127.8 million year over year.

Williams’ total loss increased significantly to about $546.6 million from $74 million year over year.

These numbers include the performance of Williams Communications Solutions, which the company recently announced it intends to sell as part of a decision to focus on its broadband network business. Williams expects to realize between $350 million and $450 million from the sale. The loss from this unit, now considered a discontinued operation, totaled $1.16 per share.

Fourth-quarter losses for all discontinued operations were $1.05 per share. Losses from Williams’ continuing operations totaled $55.7 million, or 13 cents per share.

Consensus earnings estimates taken from the First Call Web site projected a loss of 48 cents per share for Williams.

Scott Schubert, Williams’ chief financial officer, said the company’s revenues and earnings before interest, taxes, depreciation and amortization (EBITDA) beat analyst estimates and company provided forecasts.

A report from Dan Reingold with Credit Suisse First Boston concurred. “In [Williams Communications Group] main revenue growth driving division, Network Services, WCG reported a recurring EBITDA loss…12.9% better than our estimates,” the report states.

According to Howard Janzen, president and CEO of Williams, the company’s customer base grew significantly during the quarter.

“We ended the year with 225 bandwidth-centric customers, a 174% growth over last year and 27% growth over the third quarter,” he said. “These are billed customers, real customers with an average contract life of seven years and a significant portion are…customers producing recurring revenue.”

Williams share price has changed little throughout the day.