MCI Restates Earnings

 
 
By Shelley Solheim  |  Posted 2004-03-12 Print this article Print
 
 
 
 
 
 
 

Bankrupt telecom company MCI, formerly known as WorldCom Inc., on Friday restated its financial earnings for the years 2001 and 2000.

Bankrupt telecom company MCI, formerly known as WorldCom Inc., on Friday restated its financial earnings for the years 2001 and 2000. Adjustments and write-downs reduced pre-tax income for those years by $74.4 billion, according to a filing the company made with the Securities and Exchange Commission. "While these restatement adjustments are substantial, they do not have any impact on our current, substantial liquidity position," said Bob Blakely, MCI executive vice president and chief financial officer, in a statement.
The restated, consolidated revenue was $37.7 billion for 2001 and $39.3 billion for 2000, with net losses of $15.6 billion in 2001 and $48.9 billion in 2000.
The Ashburn, Va., company, which filed for bankruptcy protection following its accounting scandal in 2002, expects to emerge from Chapter 11 protection in April 2004, according to the statement. Last week, former WorldCom CEO Bernard Ebbers was indicted for conspiracy and securities fraud for his alleged role in inflating the value of the companys stock. These charges came shortly after the companys former chief financial officer, Scott Sullivan, pleaded guilty to related criminal charges. The two men could face a maximum sentence of five years in prison for the conspiracy charge.
 
 
 
 
 
 
 
 
 
 
 

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