(Reuters) – Lumen Technologies, a telecommunications services firm, exceeded Wall Street expectations for third-quarter revenue, demonstrating its success in meeting the growing demand for its services as businesses undergo digital transformation.
Lumen stands out with its extensive network of fiber optic and copper cables, offering cloud-based communication services and IT solutions to businesses and users. By providing a unified interface for managing calls, messages, and video meetings, Lumen streamlines operations and enhances productivity.
Based in Monroe, Louisiana, the company reported revenues of $3.64 billion for the quarter ending September 30. This figure surpassed the average estimate of $3.61 billion, according to LSEG data. However, it marked a 17% decrease compared to the same period last year.
Lumen is set to finalize the sale of its EMEA business, pending customary closing conditions, on Wednesday.
During an earnings call, CEO Kate Johnson stated that the company will undertake reorganization measures, resulting in a 4% reduction in its workforce. These efforts, alongside other optimization initiatives, are projected to yield approximately $300 million in annual savings, added Johnson.
Furthermore, Lumen’s long-term debt at the end of the third quarter amounted to $19.74 billion.
In a significant development, the State of California’s Department of Technology awarded Lumen a contract exceeding $400 million for the network infrastructure of the middle mile broadband initiative.
Lumen experienced a net loss of $78 million for the quarter, in contrast to a reported net income of $578 million in the previous year.
Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri
