XO Reports First Quarter Losses

XO Holdings operates XO Communications LLC, which runs the wireline business, and Nextlink Wireless Inc., the wireless division. The company posted $349.7 million in revenue and a net loss of $43.7 million. (4Q05 revenue was $351.3 million). Revenue from XO Communications totaled $349.6 million, compared to $361.5 million in the first quarter of 2005. Revenue from Nextlink was $.1 million in the first quarter of 2006 compared to no income, since the company did not exist, in the first quarter of 2005. Carl Icahn bought $1B in XO's bank debt in 2002 when the company was in BK (CH 11). Icahn's Elk Associates was supposed to buy XO wireline for $700M, but that was called off at the end of March due to shareholder lawsuits. "It acquired Allegiance Telecom in 2004, in recent quarters its revenue has been dropping." Annual revenues are $1B; debt is estimated at $400M. Their corporate structure is convoluted:

Restructuring Merger On March 6, 2006, the company announced that it had streamlined its corporate structure by creating a new holding company for the XO businesses. Under the terms of the reorganization, XO Communications, Inc. merged with and into XO Communications, LLC, a wholly-owned subsidiary of XO Holdings, Inc., the new holding company for the XO wireless and wireline businesses. XO Communications, LLC operates as the holding company's national wireline telecommunications business and XO LMDS Holdings, Inc. operates as the holding company's fixed broadband wireless business. Prior to the reorganization, XO Communications, Inc. formed XO Holdings, Inc. as its direct wholly-owned subsidiary, which in turn formed XO Communications, LLC as its direct wholly- owned subsidiary.