Fast Breaks Newsfront: April 23, 2001
Weeks after Level 3 Communications CEO Jim Crowe predicted his company would hit $2.5 billion in revenue in 2000, Level 3 restated its earnings estimate to $1.4 billion, down from $1.7 billion. Some observers think the missed target could cost Crowe his job.
Nortel Networks reported a steep first-quarter net loss of $2.58 billion, or 82 cents per share, compared with a loss of $730 million, or 26 cents per share, a year earlier. Operating loss for the quarter was $385 million. The company has stepped up layoffs to improve the bottom line.
Accenture, the old Andersen Consulting business, is planning a $1 billion IPO underwritten by The Goldman Sachs Group and Morgan Stanley Dean Witter & Co., the two firms that brought out KPMG Consulting earlier this year. Accenture said it earned $2.5 billion on $9.75 billion revenue last year.
Yahoo! has hired Terry Semel, the former co-CEO of Warner Bros., as its new chairman and CEO. Semel and former partner Robert Daly are credited with building Warner Bros. from a $1 billion company with one revenue source to a $15 billion conglomerate.
Throw in the Towel
Quokka Sports reportedly plans to cease operations. The sports and Internet broadband play has struggled with the poor advertising climate, and announced in February that it would cut 59 percent of its work force. Quokka had strategic relationships with NBC and Intel, but to no avail.