Infonet Posts Loss in First Quarter

Infonet Services Corp. lost $36 million and posted 14% lower sales for the fiscal first quarter, as the El Segundo network services firm got hit with write-offs related to the shutdown of KPNQwest and the bankruptcy of WorldCom Inc.

The company’s loss was equal to 8 cents a share for its first quarter, ended June 30, compared with net income of $2.5 million, or 1 cent a share, for the same quarter last year. Sales totaled $147 million, down from $172 million a year earlier. During the quarter, Infonet wrote off $41 million in network capacity purchased from KPNQwest, a data carrier shut down in July, and put $5 million in reserve to cover anticipated losses related to WorldCom’s bankruptcy filing.

Shares of Infonet fell 3 cents to $2.39 on the NYSE.