MCI, after being the center of a bidding war between Verizon and Qwest (which Verizon won), reported a first-quarter loss.

First-quarter revenues were $4.8 billion, down 4 percent sequentially and 12 percent year-over-year.

According to Reuters,

MCI, the No. 2 U.S. long-distance telephone company, reported a net loss of $2 million, or 1 cent per share, compared with a loss of $388 million, or $1.19 per share, a year earlier. MCI, formerly known as WorldCom, emerged from bankruptcy in April 2004.

Revenue fell 12 percent to $4.8 billion.

Operating expenses fell sharply compared to the year-earlier quarter when the Company incurred significant expenses related to its reorganization, which became effective April 20, 2004, according to a press release.

“We achieved solid performance in the first quarter,” said MCI president and CEO, Michael D. Capellas. “Focusing on our IP leadership strategy, you will see us accelerate our push into network security, managed network services and hosting, better positioning us in the industry’s highest growth segments.”

Operating income before depreciation and amortization was $443 million for the quarter. Operating income before depreciation and amortization for last year’s first quarter would have been $251 million which includes the effect of approximately $157 million of severance and restatement expenses.

Operating income was $115 million for the quarter compared to an operating loss of $270 million in the comparable 2004 period. Income from continuing operations before taxes was $28 million in the first quarter versus a loss of $362 million in the first quarter of 2004. In the quarter, results benefited from unusual items of $52 million, as they did in the fourth quarter of 2004. The Company reported a net loss of $2 million or 1 cent per basic and diluted share in the first quarter of 2005. MCI recorded a loss of $388 million or $1.19 per basic and diluted share in the year earlier quarter. MCI had approximately 325 million shares outstanding at the end of first quarter 2005.

MCI continues to expect 2005 revenues of $18 billion to $19 billion.

The Company doesn’t expect to declare any future quarterly dividend payments. According to its merger agreement with Verizon, a special dividend will be paid following shareholder approval of the transaction.

Chris is a staff writer for webproworld. Visit webproworld for the latest ebusiness news.