Level 3 Communications

Level 3 Communications - Level 3 Communications Research...

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Level 3 Communications Research Report Introduction Level 3 Communications, #465 in the Fortune 500, is an international communications company headquartered in Broomfield, Colorado. The company operates one of the largest communications and Internet backbones in the world. Since Level 3 was founded in 1998, it has been focused on delivering premier services over one of the world’s most advanced, IP-optimized networks. Level 3 owns and maintains over 48,000 intercity route miles. Level 3 offers a comprehensive portfolio of network offerings that spans Internet Protocol (IP) services, broadband transport, colocation services, and patented Softswitch-based managed modem and voice services. Level 3 also uses these network services as a foundation for delivering enterprise telecommunications solutions. Facts Outlined Company Type Public (NASDAQ (GS): LVLT) Fiscal Year-End December 2007 Sales (mil.) $4,269 1-Year Sales Growth 26.4% 2007 Net Income (mil.) $1,114 1-Year Employee Growth 54.2% Company $ size (annual revenues) and number of employees Level 3 Communications collects an annual revenue of $4,269 million as of 2006.
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Level 3 Communications employs 7,400 people as of the year 2006. These employees are in fields such as  Backhaul services Colocation Dark fiber Dedicated access Dedicated wavelengths (virtual fibers in a wavelength division multiplexed system) Internet protocol (IP) and data services Managed modem (outsourced local points of presence for ISPs) Managed security Private lines (dedicated circuits, from T1 to OC48 speeds) Softswitch services Transoceanic services Transport and infrastructure services Virtual private networks (VPNs) Since Level 3 is a vast company, the jobs range from all sorts of professions to  regular maintenance. Company profitability Level 3 Communications’ company profitability is broken down into three main components: o Gross Margin (TTM)%
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o Operating Margin (TTM)% o Profit Margin (TTM)% These are all ways of measuring management’s efficiency.  They all compare company  operations to its competitors. Gross Margin is a measurement of a company’s manufacturing and distribution efficiency  during the production process.  It shows how much of each revenue dollar is left over  after subtracting costs directly earned to generate those sales. When a company’s gross  profit margin is higher than the industry or its competitors, it means that they are more  efficient.  To figure gross profit margin you divide total revenue by gross profit. Operating Margin is the measurement of quality of a company’s operations between its 
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This note was uploaded on 04/09/2008 for the course BT 101 taught by Professor Skown during the Fall '07 term at Stevens.

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Level 3 Communications - Level 3 Communications Research...

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