Company Expects to Meet or Exceed Previously Provided Guidance for First Quarter and Full Year 2001
BROOMFIELD, CO, March 2, 2001 - Level 3 Communications, Inc. (Nasdaq:LVLT) today reaffirmed financial guidance previously provided for both the first quarter and full year of 2001. Level 3 said that the company expects to meet or exceed the guidance given on January 29, 2001 for first quarter communications revenue of $360 to $370 million. Additionally, the company remains comfortable with its previous estimates for communications revenue of $1.7 billion and communications cash revenue of $2.4-2.6 billion for the full year 2001. "In light of announcements by other telecommunications service providers and difficult prevailing capital market conditions, we recognize that there may be some concern that these issues could have a similar impact on all companies in the industry. While it may affect some, we do not believe it will adversely affect all companies. Given our unique competitive position and the continuing strong demand we are seeing for our services, we remain comfortable with our previously announced financial guidance. Our confidence is underscored by the fact that as of the end of year 2000, over 65% of projected 2001 revenue was in backlog, and this percentage continues to increase as we near the end of the first quarter. Further, the fact that our business plan is funded to free cash flow breakeven; combined with the completion of strategic elements of our U.S. and European continuously upgradeable metro and intercity networks; and the consequent availability of all of our key service offerings, represent an unusual opportunity to consolidate our position as a premier provider of IP and optical communications services," said James Q. Crowe, chief executive officer of Level 3.
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
