MFN revenue exceeds guidance; misses finance deadline
Metromedia Fiber Networks Inc.'s contingency-heavy commitment from Citicorp ran out today with no resolution on the hoped-for financing. The company also reported a second-quarter net loss of $205 million, or 34 cents a share, although its $91.7 million in revenue exceeded its guidance.
MFN on Aug. 1 had announced a two-week extension on a commitment letter from Citicorp, which would ensure $62.5 million if MFN could raise $287.5 million from other sources and $200 million in vendor financing. MFN said at the time it had $180 million committed and was negotiating for the rest.
"The company will not be consummating any financing on or before the Aug. 15, 2001 expiration of the Citicorp commitment letter," MFN says today in a statement. Negotiations with Citicorp and its other financing sources are ongoing.
The company's $205.2 million net loss compares with a net loss of $92 million, or 17 cents a share, a year ago. MFN says the increased losses stem from its acquisition of SiteSmith and related goodwill amortization, as well as increased costs of supporting its network expansion.
Revenue for the quarter jumped 112 percent over last year, from $43.3 million to $91.7 million, which exceeded its guidance of $89 million to $91 million, it says.