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Level 3 Q2 2009 results

Level 3 Communications, Inc. (NASDAQ: LVLT) reported consolidated revenue of $942 million for the second quarter 2009, compared to consolidated revenue of $1.09 billion for the second quarter 2008.

The net loss for the second quarter 2009 was $134 million, or ($0.08) per share, compared to a net loss of $42 million, or ($0.03) per share for the second quarter 2008, which included a gain of $96 million from the sale of the company’s Vyvx advertising distribution business. The net loss for the first quarter 2009 was $132 million, or ($0.08) per share.

Consolidated Adjusted EBITDA was $229 million in the second quarter 2009, compared to $251 million in the second quarter 2008. Consolidated Adjusted EBITDA was $250 million in the first quarter 2009.

“The economy continued to be challenging in the second quarter for wireline service providers,” said James Crowe, CEO of Level 3. “As expected, sequential revenue pressure continued in the second quarter, although at a significantly moderated rate. We did see improvements in sales and churn, however, they were not as much as we expected. We continue to manage our costs aggressively, and for the fifth consecutive quarter, we were able to reduce our operating expenses, and year over year, we improved both our Gross Margin and Adjusted EBITDA Margin percentages. In addition, we completed several liability management transactions, which further strengthened our balance sheet.” Continue reading Level 3 Q2 2009 results

3Com Q4 and fiscal 2009 results

3Com Corporation (Nasdaq: COMS) today reported financial results for its fiscal 2009 fourth quarter and full fiscal year 2009, which ended May 29, 2009. Revenue in the quarter was $295.1 million, compared to revenue of $321.3 million in the corresponding period in fiscal 2008, an 8.2 percent decrease.

Net income in the quarter was $20.2 million, or $0.05 per diluted share, compared with a net loss of $166.7 million, or $(0.41) per share, in the fourth quarter of fiscal year 2008. Fiscal year 2008 fourth quarter results included a $158.0 million goodwill impairment charge. On a non-GAAP basis, net income for the fourth quarter of fiscal year 2009 was $37.2 million, or $0.10 per diluted share, compared with net income of $35.6 million, or $0.09 per diluted share, for the fourth quarter of fiscal year 2008.

Revenue for the full fiscal year 2009 was $1,317.0 million, compared with $1,294.9 million in the prior year, a 1.7 percent increase. Fiscal year 2009 net income, on a GAAP basis, was $114.7 million, or $0.29 per diluted share, compared with a net loss of $228.8 million, or $(0.57) per share, for the prior fiscal year. On a non-GAAP basis, net income for fiscal year 2009 was $176.7 million, or $0.45 per diluted share, compared with net income of $94.9 million, or $0.23 per diluted share, for fiscal year 2008. Continue reading 3Com Q4 and fiscal 2009 results

EU Telecom VoIP policy – a bad thing according to VON

Leading companies on the cutting edge of developing and delivering Internet voice communications technologies, today launched a new coalition to advance policies that enable consumers and businesses throughout Europe to enjoy the full promise and potential of Internet communications. This new coalition of companies, from Europe and around the globe, believes that with the right public policies, Internet-enabled communications, such as Voice over Internet Protocol (VoIP), can increase competition, provide a platform for innovation, drive broadband deployment, and enable economic growth.

The recent release of formal Proposals by the European Commission to amend the existing regulatory framework for communications marks the start of a wide ranging review by the Council of Ministers and European Parliament. As we enter this era of rapid and potentially far reaching regulatory change, industry leaders have come together under one roof to create an authoritative voice for the Internet-enabled communications industry.

The Voice on the Net (VON) Coalition Europe, made up of leading Internet communications and technology companies from Europe and around the world, will advocate for Internet voice innovation and the policy framework that enables it. The coalition will work to educate, inform and promote responsible government policies that enable innovation and the many benefits that Internet voice innovations can deliver.

Founding members of the VON Coalition Europe include such industry leaders as: iBasis, Intel, Google, Microsoft, Rebtel, Skype, and Voxbone.

“Internet-enabled communications are an entirely new genre of communications products, services, and applications and a new frontier in communications for individuals and businesses alike. In order to unleash their vast benefits, policymakers need to embrace forward-thinking policy approaches,” said Stephen Collins of Skype.

“If we automatically subject this new technology to legacy telephone regulation, consumers and business users could miss out on the new services, increased choices, better prices and improved features that VoIP for example, can deliver,” said Collins.

“To maximize the consumer benefit from VoIP and other exciting IP-enabled technologies, policymakers should embrace a light-handed regulatory approach that facilitates competition, innovation, and rapid deployment of IP networks,” said Peter Pitsch, Executive Director, Communications Policy, at Intel.

The group recognizes that there are important social policy obligations like emergency access that have yet to be fulfilled by some types of VoIP services, such as those that substitute for the traditional telephone in your home. The coalition hopes to educate policymakers about the vast progress that has been made, and the potential for Internet-enabled communications to further extend the reach and capabilities in an emergency. However, the Coalition is concerned, for example, that premature application of 112 rules to web sites, click-to-dial services, 1-way PSTN-out interconnected voice services, and other VoIP services that are not a replacement for traditional home/business phone services could actually harm public safety, stifle innovations critical to people with disabilities, stall competition, and limit access to innovative and evolving communication options where there is no expectation of placing a 112 call.

With VoIP, voice is now becoming just another application riding on the Internet or on data networks – and is being integrated into web sites, social networking communities, instant messaging software, blogs, mapping programs, voice recognition applications, and is likely to be used tomorrow in ways we can’t even imagine today.

“VoIP and other Internet-enabled communications technologies are transformative technologies,” said Kevin Minsky, Policy Counsel, at Microsoft. “Enlightened policy approaches will enable VoIP and other Internet-enabled devices, applications, and services to transform communications, boost business productivity, and empower consumers with more choices and capabilities never before possible.”

While promoting positive policy outcomes, the coalition said it will also work to resist the creation of regulatory barriers that could prevent consumers from enjoying the vast benefits and innovations that VoIP and Internet-enabled communications have only begun to deliver.

Hjalmar Winbladh, Rebtel co-founder and CEO said, “Reflexively applying legacy telephone regulations to new, innovative Internet communication services, applications, and devices presents the greatest potential roadblock for extending the benefits of these new and exciting technologies to more consumers.”

Outreach Planned to European Policymakers

Regulatory changes are afoot that could fundamentally reshape the European communications landscape. By launching a new European focused effort, the coalition hopes to educate policymakers throughout Europe about forward thinking policy approaches that can enable families and friends to communicate in ways never before possible, integrate voice into a variety of new web based applications, and boost business productivity by as much as 15%.1

Rodrigue Ullens de Schooten, CEO Voxbone, said “the Coalition will help educate, inform and promote forward-thinking policies that do not stifle innovations with heavy handed regulation that could potentially delay the vast benefits that VoIP can deliver.”

“We are going to engage in direct outreach to policymakers throughout Europe; work with public safety and standards bodies on advancing new policy solutions; and participate in proceedings and debates throughout the EU,” Erik De Herdt, General Counsel Voxbone, noted.

The European Commission’s proposed framework revisions signal the start of a critical phase that could determine how and when consumers benefit from the lower prices, new services, and advanced communication features that VoIP and other Internet-enabled communications can deliver. Such EC policies, if properly implemented, have the potential to unleash these services in Europe and position member countries to take a leading role of deployment of such services to consumers and businesses. To help work toward this goal, the VoIP, Internet, and information technology communities must speak with a unified voice, behind a common set of principles, and work with the EC and member states to make sure that unfounded concerns do not prevent consumers and businesses from enjoying the benefits of innovative Internet voice applications, services, and devices.

Similarly forward thinking Internet-based communication providers interested in joining the VON Coalition Europe should e-mail [email protected].

PAETEC to Acquire Allworx

PAETEC Holding Corp. (NASDAQ GS: PAET) announced today that it has signed a definitive agreement to acquire Allworx Corp., a privately held company, in a $25 million all-cash acquisition. Allworx develops, designs, markets, and sells a complete phone and network system. Upon the closing of this acquisition, PAETEC will add a subsidiary with manufacturing, distribution, and software and digital hardware engineering services that are designed to benefit small and medium-sized businesses. The transaction is subject to customary closing conditions and is expected to be completed in October 2007.

With the September 17 announcement that it has signed an agreement to acquire McLeodUSA, PAETEC is expected to enhance its offerings to small and medium-sized business customers. The Allworx portfolio should allow PAETEC to better serve this market. This portfolio includes integrated PBX/Key telephone and network systems and VoIP telephones with a series of advanced communications software options, such as conference calling and call queuing.