RESTON, Va.-Broadband services provider XO Communications Inc. announced disappointing third-quarter 2003 results this week.
Revenue was down 7.3 percent from last year’s third quarter to $279.4 million. In addition, revenue from the first nine months of 2003 decreased by 11.6 percent from the same period of 2002 to $849.4 million. Loss from operations was $35.9 million, which was improved from a loss of $673 million in the year-ago period.
The company expects revenues to decline an additional 5 percent in the fourth quarter and expects loss from operations to increase to $50 million for the fourth quarter.
“The market for new telecom services remains weak, and we face competitive pricing pressure,” explained Carl Grivner. “In addition, during the third quarter, XO invested in its business operations and expanded its direct sales force as well as its sales agent program in key markets. These initiatives are expected to have a negative impact on our short-term financial results, however, we remain hopeful about the long-term benefits of the actions we have undertaken.”
