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XO Communications announced that the GameRail and XO have signed agreements for XO Communications to provide network services in support of the rapid expansion of GameRail’s high-capacity gaming network. GameRail is the nation’s first and leading network operator dedicated to delivering superior performance to the online gaming community.
Under the terms of the agreement, GameRail will purchase Gigabit Ethernet (GigE) inter-city private line circuits and IP Transit services from XO Communications to support the phase one completion of the GameRail network and possible future domestic network expansions as GameRail continues to deploy services throughout North America. XO has already delivered multiple inter-city circuits, completing installation in five days due to the scalable systems and pre-deployed capacity in the XO network. With the additional new capacity provided by XO’s next generation optical network and services, GameRail will be able to further expand the availability and performance of its private nationwide network for serious online gamers. Read the rest of this entry »
Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that it has completed its acquisition of Broadwing Corporation (Nasdaq: BWNG), a publicly held provider of optical network communication services. Read the rest of this entry »
Broadwing Corp. today announced that it has signed a definitive agreement to be acquired by Level 3 Communications, Inc. Under the terms of the agreement, Level 3 will pay $8.18 in cash plus 1.3411 shares of Level 3 common stock for each share of Broadwing common stock outstanding at closing. Read the rest of this entry »
Level 3 Communications, Inc. announced that it has signed a definitive agreement to acquire Broadwing Corporation. Under the terms of the agreement, Level 3 will pay $8.18 of cash plus 1.3411 shares of Level 3 common stock for each share of Broadwing common stock outstanding at closing. In total, Level 3 currently expects to pay approximately $744 million of cash and issue approximately 122 million shares. Read the rest of this entry »
Broadwing and St. Louis, Mo., Progression Networks, dba GameRail, today announced that the companies have completed definitive agreements for the implementation of a nationwide fiber-based backbone network for GameRail subscribers to access their preferred “on-net” online game hosts.GameRail’s innovative approach to improving online gaming, powered by Broadwing’s leading-edge optical backbone, will accelerate transport speeds and will dramatically improve performance for serious online gamers. GameRail will purchase several 100Mb Ethernet Private Line circuits from Broadwing over the course of a 36-month contract that allows them to add additional Ethernet-capable cities as needed. Read the rest of this entry »
Total Revenue Increases $2.0M Year-Over-Year
— Data/Broadband Revenue Increases $10.5M Year-Over-Year
— Operating Loss Narrows 63% and Net Loss Narrows 70%, Year-Over-Year
— Stephen E. Courter to Lead Broadwing as CEO
Broadwing Corporation (NASDAQ:BWNG), a leading provider of optical network communications services and solutions, today announced its second quarter 2006 financial and operational results.
For the second quarter 2006, Broadwing reported total revenue of $224.3 million, compared to $224.0 million reported for the first quarter 2006 and $222.2 million for the second quarter 2005. Net loss for the quarter was $11.7 million, or a loss of $0.13 per share. This compares to a net loss for the first quarter 2006 of $20.0 million, or $0.26 per share; and a net loss for the second quarter 2005 of $38.3 million, or $0.52 per share.
Second Quarter Selected Highlights:
— Data/broadband revenue increased 9% year-over-year with growth focused on high-speed optical and converged services.
— Cost of revenue as a percentage of total revenue improved to 62% from 66% year-over-year and to 62% from 64% quarter-over-quarter, primarily attributable to improvements in our access architecture and benefits resulting from investment in our voice network.
— Net loss for the second quarter narrowed 70% year-over-year to $11.7 million. Net loss improvement year-over-year was primarily attributable to cost reductions and decreased depreciation, amortization, restructuring and interest expenses.
“Strong year-over-year data/broadband revenue growth was driven primarily by sales of our new Converged Services and by increased demand across virtually all of our broadband product set, but particularly for high-speed optical circuits,” said Lynn Anderson, chief financial officer of Broadwing. “Recent broadband revenue growth came mostly from enterprise customers.
“The improvements in operating loss and net loss we reported this quarter are primarily the result of our successful efforts to reduce costs by improving the efficiency of our network,” said Anderson.
Broadwing announced July 25 that Stephen E. Courter has joined the Company as chief executive officer and director. Mr. Courter, 51, brings over 20 years of telecommunications experience to his new position, including his leadership of fiber-optic service provider Neon Communications Inc. as CEO and Chairman until its merger with Globix Corporation in 2005. Prior to Neon, Mr. Courter was CEO of Enertel, a Dutch data, IP and corporate voice services provider and the largest alternative network in The Netherlands. Mr. Courter previously held executive positions with Sprint and Sprint International, and subsequent to serving in the United States Army, held positions with IBM and KPMG. He is a graduate of Pennsylvania State University and holds an MBA from George Washington University.
“Broadwing has everything it takes to be successful in this new telecom landscape — leading-edge network, comprehensive product set, agility, and experienced people with a strong customer focus,” said Courter. “My mission is to seize the opportunity before us, leveraging Broadwing’s impressive assets to capitalize on our market position, the transition to next-generation services and the growing demand for bandwidth.”
Quarterly Financial Results Detail
Broadwing Communications services revenue can be divided into two main product categories: “data/broadband” and “voice.” Data/broadband consists of high-speed data transport services utilizing Internet protocol (“IP”) and ATM/frame relay platforms; Converged Services; long-haul transmission of data, voice and Internet traffic over dedicated circuits (Private Line); and Media transport services. Voice includes revenue from sales of long distance/local voice services, including Voice over Internet Protocol (VoIP) services.
Revenue from data/broadband services was $125.7 million, or 56% of total revenue in the second quarter. Data/broadband revenue increased 1% from the prior quarter and 9% from the second quarter 2005, with the year-over-year increase largely due to increased sales of Converged Services and sales growth across virtually all of our broadband products, particularly higher speed optical circuits. Sequential revenue growth was impacted in part by the expected disconnects of temporary “Katrina” circuits sold to carriers affected by the hurricanes last year and to continued rate compression.
Voice revenue from sales of long-distance and local voice services was $98.4 million, a 1% decrease from the prior quarter and a 7% decrease from the second quarter 2005. The year-over-year decrease in voice services revenue was due primarily to the impact of industry-wide rate compression, to lower wholesale voice volumes resulting from price increases Broadwing implemented beginning in the second half of 2005, and to a reduction in switched minutes of use from adoption of alternative technologies. Voice revenue was 44% of total revenue.
Net loss improvement from prior quarter resulted primarily from network improvements and decreased depreciation, restructuring and interest expense.
Financial Position Read the rest of this entry »