(RTTNews) - Communications business provider Level 3 Communications Inc. (LVLT: News ), on Wednesday reported a wider net loss for the third quarter of fiscal 2009, hurt by a sharp decline in revenues at its communications segment. Shares of Level 3 are currently trading down by around 9% on the Nasdaq following the results.

The Broomfield, Colorado-based company's third quarter net loss widened to $170 million or $0.10 per share from a net loss of $129 million or $0.08 per share last year.

On average, 14 analysts polled by Thomson Reuters expected the company to post a loss of $0.10 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.

Consolidated Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization, or EBITDA, for the quarter was $213 million in the third quarter 2009, compared to $255 million in the third quarter 2008.

Quarterly revenue tumbled to $916 million from $1.07 billion in the year-ago quarter. Street analyst' revenue estimate was $928.70 million for the quarter.

Total communications revenue slipped 15% to $901 million from $1.05 billion last year. Core communications services revenue, which includes Core Network Services revenue and Wholesale Voice Services revenue, dropped 11% year-over-year to $859 million from the previous-year quarter. Core Network services revenue slid 11% to $701 million from a year ago, while wholesale voice services revenues decreased 9% to $158 million from the same quarter last year.

Communications gross margin contracted to 59% from 59.7% in the year-earlier period.
Total costs and expenses for the quarter was $942 million, down from $1.07 billion in the year-earlier period. Operating loss for the quarter was $26 million, compared to operating income of $4 million in the same period last year.

The communications deferred revenue balance was $880 million at the end of the third quarter 2009, compared to $910 million at the end of the third quarter 2008.

James Crowe, chief executive officer, Level 3 said, "While we remain cautious, we saw positive signs in the business this quarter, as evidenced by the improvement this quarter in the rate of decline in Core Network Services revenue. "

Level 3 indicated that during the quarter, the rate of decline in Core Network Services revenues improved, as expected. The company also saw improvements in churn and sales in several segments across the business.

Looking ahead to full year 2009, Level 3 expects consolidated adjusted EBITDA of $900 million to $950 million. Further, the company continues to expect improvement in the sequential performance of Core Network Services revenue and consolidated adjusted EBITDA is expected to increase in the fourth quarter sequentially.

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