In it monthly financial update to the bankruptcy court, WorldCom reported $2.16 billion in revenue versus $2.20 billion in December 2002 and income from continuing operations of $188 million versus a loss of $47 million in December. Net income for January was $155 million versus a net loss of $580 million in December. January reorganization items were $37 million versus $514 million in December. WorldCom ended January with $2.8 billion in cash on hand, an increase of approximately $300 million for the month. Michael Capellas, WorldCom chairman and CEO, said the profitability for the month of January indicated progress in its 100-day restructuring plan, but that a lot more work needs to be done. He expects WorldCom to emerge from Chapter 11 later this year.
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- Last week, WorldCom noted two milestones in its 100-day restructuring plan. MCI’s The Neighborhood, an “any-distance” local + long distance residential calling plan, is now available in all 48 contiguous states plus Washington, D.C. The WorldCom Connection, which consolidates local and long distance voice and data services for small businesses over one connection, is now available in all 94 metropolitan service areas where WorldCom owns local service facilities. WorldCom also announced today that it has expanded its bundled Connection offering to support PBX systems and a choice of IP phones.
- Also this month, WorldCom announced nearly $80 billion in balance sheet write-offs covering existing goodwill and the carrying value of its other intangible assets, property and equipment.