Annual revenues at XO Holdings Co. were basically flat in 2010. The telecommunications provider on Thursday revealed that they grew $8 million, or less than 1 percent, from $1.521 billion in 2009 to $1.529 billion last year.
XO reported an annual net loss of $11.8 million, a reversal from the prior year in which the company posted a profit of $21.8 million thanks to gains from the sale of marketable securities.
Herndon, Va.-based XO primarily attributed its annual loss to a $20 million impairment charge that was related to its LMDS licenses.
In the fourth quarter, revenues rose $14.5 million, or 4 percent, to $390.3 million over the same period a year ago.
The company posted a quarterly net loss of $6.5 million. That compared to a profit of $13.3 million in the year-ago period.
XO ended the year with cash and cash equivalents of $69.6 million.
The company said it will be able to meet its obligations for at least the next year, but cited the need for additional capital to implement its transformation plan and also give the company the resources to take advantage of strategic opportunities.”
In January XO announced that it formed a special committee from its board of directors to evaluate a proposal by an affiliate of billionaire Carl Icahn ACF Industries Holding Corp. to acquire the telecom provider for 70 cents per share in cash.
Icahn is the chairman of XO Holdings, and through ACF Holding and its affiliates, already holds the majority of XOs common stock.
A national law firm that practices securities law, Tripp Levy, has said it is investigating the proposed acquisition on behalf of XO shareholders.
The investigation concerns, among other things, whether the consideration to be paid to XO shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of XO,” New York-based Tripp Levy PLLC stated in a press release on Jan. 21.
The law firm further stated that the investigation concerns whether Icahn and XOs directors are failing to act in the best interests of shareholders in connection with the transaction.
According to Tripp Levy, Icahn owns roughly 91 percent of XOs outstanding shares.