News

MCI posts lacklustre quarterly results

MCI has reported disappointing financial results for its first quarter ending 31 March, blaming excess capacity and ensuing pricing pressures.

The company reported first-quarter revenue of $6.3bn, down from $7.2bn in the first quarter of 2003. Without its Embratel Brazilian unit, which the company plans to sell this year, revenue fell to $5.4bn from $6.6bn.

The net loss was $388m, compared with net income of $52m in the first quarter of 2003.

However, MCI did exceed slightly the revenue expectation which, excluding the Embratel results, was for $5.38bn.

To reduce costs, MCI intends to lay off 7,500 employees in the second quarter and consolidate its network operations further. To jumpstart revenue, it will focus on delivering new IP-based products to its enterprise customers.

WorldCom filed for bankruptcy in July 2002 in the midst of a massive multibillion-dollar accounting scandal. It sought shelter under Chapter 11 of the US Bankruptcy Code, from which it emerged last month.

In March, MCI reported a loss of $48.9bn in 2000, $15.6bn in 2001, and $9.2bn in 2002.

Juan Carlos Perez writes for IDG News Service

Related Topics: IT strategy, VIEW ALL TOPICS

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy