XO beats forecasts, alters guidance

(Telephony) XO Communications narrowly beat analyst estimates for the fourth quarter, reporting a loss per share, excluding one-time items, of $1.29 per share. Consensus estimates taken from First Call Web site for the quarter projected a loss of $1.32.

XO’s total revenue for the year was $723.8 million, up from $274.3 million in 1999. Total revenue for the quarter was $253.1 million, up 13% from the previous quarter and 181% year over year.

XO’s revenue mix for the quarter consisted of about 54% data, 45% voice and 1% from other sources.

According to Chairman and CEO Dan Akerson, the focus on data reflects the company’s strategy since its formation through the merger of Nextlink Communications and Concentric last September.

“The Concentric merger was the single most important event in 2000, as we fundamentally transformed the company from its former voice-centric focus to an integrated telecommunications provider offering a complete range of voice and data services,” Akerson said. “The Concentric merger…provided us with some of the expertise we needed to dramatically broaden our product portfolio with a full suite of data services.”

Despite the 13% increase in revenue, XO’s earnings before interest taxes depreciation and amortization (EBITDA) remained fairly steady, going from an $88.9 million loss in the third quarter to an $88.7 million loss in the fourth quarter.

For 2001, the Wayne Rehberger, XO’s chief financial officer, tweaked the company’s guidance, saying revenue would be on the low end of projections.

“Our annual revenue range remains at $1.4 billion to $1.5 billion,” Rehberger said. “Based on the assumption of a soft landing for the economy, we expect that the results will be in the lower half of that range. Our 2001 EBITDA …ranges between a loss of $210 million and $240 million.”

The adjusted guidance has received a cold reception from Wall Street, which sent the company’s stock down 11% to about $21 in mid-morning trading.