The Broomfield, Colorado-based company has trimmed its forecast for the year slightly but believes it is on course to grow revenue by at least a quarter to reach a range of $3.99bn to $4.3bn.
Level 3 will not make a forecast for net profit for the year and has yet to complete capital expenditure plans but expects margins to increase and has raised its target for earnings at the EBITDA level for the year to $705m to $755m from the $350m to $400m it forecast in February.
CEO James Crowe said the bottom of the communications business in terms of new sales levels was reached in the middle of 2002, and the company was optimistic it would see gradual improvements. However, in its information services business the company was experiencing sales weakness.
