Qwest Ups Restatement To $2.2 Billion

Qwest Communications International overstated revenue for 2000 and 2001 by $2.2 billion, the company reported Tuesday following an internal audit.

Qwest originally said it planned to restate $1.48 billion in fiber-optic network capacity deals. The $2.2 billion restatement would cause the company's 2001 revenue to drop to $18.4 billion from a previously reported $19.7 billion, and 2000 revenue to fall to $15.7 billion from $16.6 billion.

The restatement stems from incorrectly booking sales of swapped network capacity with other providers.

Qwest's accounting practices are currently under investigation by the Securities and Exchange Commission and the Department of Justice.

For its third-quarter 2002, the carrier had a loss of $214 million, or 13 cents per share, on sales of $3.8 billion. For the year-earlier period, Qwest had a loss of $142 million, or 9 cents per share, on sales of $4.4 billion.

First Call estimates were for a loss of 14 cents per share.

At the time, Qwest said its business was impacted by competitors undercutting its pricing, a decrease in demand for data and Internet services, liquidity concerns and an ongoing investigation by the SEC.

Qwest is expected to report fourth-quarter 2002 and full-year results Feb. 19.

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