MCI Inc. today reported its second profitable quarter in a row, helped by new product launches and cost-reduction strategies.
The long-distance carrier, which is set to merge with Verizon Communications Inc., had third-quarter net income of $271 million, or 82 cents per share. The increase came after losses of $3.4 billion a year earlier, when MCI reported the value of its network.
Meanwhile, the companys sales dropped 12 percent to $4.5 billion.
MCI says its third quarter net income was helped by reductions made to its deferred tax liabilities stemming from tax settlements reached during the quarter.
In the third quarter we continued to deliver on our strategy, launching new IP-based products and delivering industry-leading customer service, said Michael D. Capellas, MCI president and CEO, in a news release. With all U.S. federal and international regulatory approvals complete, we remain on track to close our merger with Verizon later this year or early in 2006.