Feeds

MCI rings up profit

Profit? Whassat?

  • alert
  • submit to reddit

High performance access to file storage

MCI - the US telco formerly known as WorldCom - returned to profitability in the three months to the end of June, generating net income of $64m.

Announcing Q2 results today MCI reported that revenues had dipped from $5.2bn in Q2 04 to $4.7bn this year.

It also turned around a net loss of $71m in Q2 04 into net income of $64m.

Although revenues were down, MCI's improving financial health was due to a sizeable cut in overheads with operating expenses falling 11 per cent on the year.

Much of that that is down to a major restructuring at the US telco. Last year, for example, MCI axed some 12,000 jobs as it chopped and changed its business to cope with what it described as an "adverse industry environment".

In a statement issued today MCI boss Michael Capellas: "In the second quarter, we continued to launch next generation products and services, improve customer service and realise results from our cost reduction initiatives."

And commenting on MCI's $8.4bn take-over by rival Verizon, Capellas said that the company remains focused on "moving toward a timely completion of our merger with Verizon".

In fact, it's been a busy year for MCI. Over the last 18 months or so it has emerged from Chater 11 bankrupcy protection, rejigged its operation, became embroiled in protracted buyout talks with Verizon and Qwest, and watched along with the rest of the world to see what would happen to its former boss.

In July, Bernie Ebbers - the former head of WorldCom (now MCI) - wept in court as he was told he faced 25 years in chokey for orchestrating the world's biggest securities fraud at WorldCom.

He was judged to have masterminded the $11bn (£5.8bn) con that helped make WorldCom "become synonymous with fraud". ®

Related stories

Qwest turns back on MCI bid
Punters wooed by MCI and Verizon
Ebbers weeps as sentence handed down
MCI to axe 7,500 jobs
MCI breaks free from Chapter 11
MCI to axe 4,000 US jobs

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.