Apr. 28--Level 3 Communications' first-quarter revenue declined under pressure of the recession, but the company cut expenses enough that its loss declined from the first quarter of 2008.

Sunit Patel, chief financial officer, said the company will continue to "focus on cost improvements" and expects another 150 jobs will be eliminated by June 30.

The company today reported a net loss of $132 million, 8 cents a share, on revenue of $980 million in the quarter that ended March 31. A year earlier, the company had a loss of $190 million, 12 cents, on revenue of $1.09 billion.

Combined, operating expenses and the cost of producing revenue were cut from $1.14 billion in the first quarter last year to $968 million this year. That produced operating income of $12 million, a sharp turn from the $52 million operating loss in 2008 January-March quarter.

Interest expense rose $2 million to $146 million; interest income, just $1 million, fell $5 million.

Patel reiterated in today's earnings report what he said in the fourth-quarter announcement -- that Level 3 expects to be have positive cash flow in all of 2009.

He cited declines in use of Level 3 Communications network and services and "disconnects by key wholesale customers." But, he said, "we are seeing trends that point to stabilization in our core communications services revenue base.

"We expect revenue pressure to continue in the second quarter although at a significantly moderating rate."

CEO James Crowe said, "While we continue to be cautious, we are starting to see some signs that customers are beginning to buy again after a period of a sales slowdown which we began to experience in the third quarter of last year."

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