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UPDATE 1-Global Crossing posts positive adj cash EBITDA in Q2
(Adds details, share movement)
Aug 9 (Reuters) - Telecommunications carrier Global Crossing Ltd. (GLBC.O) said a key measure of its performance was a profit for the second quarter from a year-ago loss, and shares rose more than 11 percent. The company, however, posted a wider second-quarter net loss, primarily due to a severance charge related to job cuts, even as it backed its 2007 adjusted cash earnings before interest, taxes, depreciation and amortization (EBITDA) and revenue view.
The company, which sells telecommunications services to large corporations and phone companies, considers adjusted cash EBITDA as a key measure of its performance.
For the latest quarter, the company said adjusted cash EBITDA was $8 million, including $14 million in severance expenses, compared with a loss of $10 million in the year-ago period.
Net loss applicable to common shareholders for the quarter was $101 million, compared with $77 million a year ago.
Consolidated revenue rose 19 percent to $547 million.
For 2007, Global Crossing sees adjusted cash EBITDA of $165 million to $195 million on revenue of $2.17 billion to $2.25 billion. Three analysts expected revenue of $2.24 billion, according to Reuters Estimates.
On its cost-cutting initiatives, the company said it expects net savings of about $16 million, after severance charge, in 2007 and about $40 million annually from 2008.
The company said its latest second-quarter results included full contribution from its Fibernet acquisition and contributions from its Impsat acquisition beginning May 9.
Shares of the company were trading up $2.22 at $22.01 in afternoon trade on the Nasdaq.
(Reporting by Tenzin Pema in Bangalore)
((Editing by Anil Kumar, Anil D'Silva; Reuters Messaging:tenzin.pema.reuters.com@reuters.net; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800)) Keywords: GLOBALCROSSING RESULTS/
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