MCI posts $391 million loss on charge for restructuring, with revenue strong

Article Abstract:

MCI reported a $391 million loss in the 4th qtr 1997, including charges totaling $752 million for restructurings and other expenses. The long-distance telephone company otherwise met analysts' consensus estimates. Revenue growth and traffic surpassed expectations, a surprising development given several suitors' open courtship of MCI since 1997. Net loss totaled 56 cents share on a diluted basis, which includes 66 cents a share in after-tax charges. By comparison, MCI's 4th qtr 1996 income amounted to $303 million, or 44 cents a diluted share. The 4th qtr 1997 charge included $235 million in employee retention bonuses and sales incentives to retain long-term corporate customers; $252 million for revamping its many long-distance, local and Internet-based networks; and $265 million for bolstering its data centers. MCI also reported $5.11 billion in revenue, a 7.5% increase over the 4th qtr 1996's $4.75 billion. MCI has allowed WorldCom to purchase the company for $36 billion in stock and cash.

Telecommunications, MCI Communications Corp., MCIC

---

AT&T posts loss of $2.68 billion; quarter's deficit tied to revamping costs; some areas improve

Article Abstract:

Apple announces losses of $2.68 billion for 4th qtr 1995, attributing a significant portion of the deficit to restructuring costs associated with the company's pending fracture into three independent divisions. AT&T's computer division, formerly NCR, posted a 23% loss in the quarter, and the company's advertising efforts in new markets also account for the income loss. Total revenue for the period was $22.13 billion, an increase of 4.6% from 4th qtr 1994 and marking an unpleasant end to one of AT&T's most difficult years. AT&T has incurred restructuring expenses with regularity since 1984, but the company hopes that the creation of three separate companies in 1996 will position each new division for prosperity in more competitive markets.

Wired Telecommunications Carriers, Telephone Communications, AT&T Corp., T, Telephone services, Company losses

---

Similar abstracts:

• Abstracts: ComputerLand posts $13.9 million loss for 3rd period, citing control problems. Businessland's top marketing, sales executives leave
• Abstracts: AT&T 1st-period loss is $5.64 billion due to charge, but operating profit rose. AT&T expects big '93 charge for retirees
• Abstracts: Compaq posts first net loss on big charge; deficit of $70 million linked to costs of trimming payroll, restructuring
• Abstracts: AT&T sets long distance discounts for small firms in bid to counter MCI
• Abstracts: FCC's proposal for HDTV may restrict broadcasters. FCC may open Comsat service to competition

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.