Level 3 reports 4Q loss of $182M; 2010 costs to increase as it adds to sales force

Level 3 reports 4Q loss; 2010 costs to increase

BROOMFIELD, Colo. — Level 3 Communications Inc., which provides wholesale Internet networking services, posted a bigger-than-expected fourth-quarter loss on Wednesday as voice services for big businesses declined.

The company said it lost $182 million, or 11 cents per share, during the quarter that ended Dec. 31. It earned $43 million a year ago, but that translated into a loss of 4 cents per share because a $78 million gain from an early debt repayment didn’t count toward per-share results.

Revenue fell 12 percent to $924 million from $1.05 billion a year earlier. Despite the overall decline, the company said it did see continued improvement in customer buying behavior during the fourth quarter, which contributed to sequential growth in core network services sales.

Analysts surveyed by Thomson Reuters were expecting a loss of 10 cents per share on revenue of $917.5 million.

Level 3 shares fell 13 cents, or 10.1 percent, to $1.24 in afternoon trading.

The company didn’t give 2010 guidance, but said capital spending will rise as it does see evidence that customers are returning to more normal purchasing levels. It’s also expanding its sales force, going from about 450 to more than 500 in the coming year, Chief Financial Officer Sunit Patel said on a conference call.