Williams revises Teleglobe pact; reports losses
Williams Communications revised its December 1999 agreement with Teleglobe, the company reports. The move comes after the newly independent Williams announced its first-quarter losses earlier this week.
Under the new agreement, Williams will provide Teleglobe broadband transport services, including OC-48 Optical Wave Service, along two routes from New York to Santa Clara, Calif. It also will provide Teleglobe private line services and multiple STM-1 backhaul circuits connecting the San Luis Obispo cablehead to Los Angeles.
Previously, Teleglobe was going to purchase dark fiber on Williams' national fiber optic network.
Williams yesterday reported a net loss of $306.6 million or 65 cents a share. Consolidated revenues reached $276.1 million, up 69 percent from a year ago. The company says it took several steps this year to improve its liquidity and strengthen its balance sheet, including acquiring such physical assets as a 15-story building in downtown Tulsa.
It's adjusting its guidance for 2001, citing the impact of a $90 million contract with Winstar Communications, which recently filed for bankruptcy. "Accordingly, Williams Communications is adjusting its 2001 revenue guidance to $1.2 (billion) to $1.3 billion to reflect this impact," Williams says in a statement.