With Level 3 Communications' quarterly earnings announcement pending on Wednesday, at least one analyst isn't too bullish on the company's future – at least in the near term.
what he forecast in July
Level 3 has been saddled with billions of dollars in debt for years, but managed to cut its loss in the second quarter from $62 million to $24 million – so there are some good signs. It followed that up with an announcement that it would cut 700 jobs – about 6.5 percent of its workforce worldwide – in an attempt to streamline operations and become profitable.
Last quarter also marked the beginning of a new relationship with Starbucks and Google. Level 3 is working with the coffee and search giants to bring faster Wi-Fi connectivity to the Seattle-based retailer's java shops. The Colorado-based CLEC is upgrading existing Wi-Fi devices and is managing in-store connectivity in more than 7,000 company-owned stores across the nation.
“With the help from the Starbucks contract signed in mid Q3 and as the new management team shifts focus from M&A to improving cost structure, we are hopeful that investors might finally start to see some signs of stabilizing operating trends," Miller added.
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