Williams Communications posts $287 million net loss
Thursday, May 16th 2002, 12:00 am
By: News On 6
TULSA, Okla. (AP) _ Williams Communications Group Inc., which filed for Chapter 11 bankruptcy protection last month, posted a net loss of $287.69 million in the first quarter, a 6 percent improvement compared with the first quarter last year.
Its net loss per share was 58 cents compared with a net loss of 65 cents in 2001's first quarter.
Williams Communications listed first-quarter revenue of $298.59 million, an 8 percent increase over the same period a year ago. Operating expenses in the quarter increased 11.2 percent, to $464.6 million. Included in the first quarter expenses were $131 million in interest expenses on its long-term debt of $4.67 billion, as of March 31, and $11.16 million in restructuring charges related to layoffs of 750 employees.
The layoffs were part of the company's effort to reduce its costs 25 percent in conjunction with a balance sheet restructuring plan it agreed to with its banks.
The company has agreed to file a restructuring plan Monday with the U.S. Bankruptcy Court for the Southern District of New York.
Williams Communications ran into problems after it built a 33,000-mile fiber-optic network, which then didn't generate as much revenue as anticipated.