Communications cash revenue for the quarter was $395 million. Consolidated revenue for the quarter was $375 million, compared with $341 million for the third quarter 2000.
The net loss for the quarter was $437 million, or $1.17 per share. Excluding the $94 million net gain primarily from previously announced debt for equity exchanges completed during the third quarter, net loss was $531 million, or $1.42 per share.
Given the difficult economic environment, we believe our performance is a demonstration of both our financial and operational strength, said James Q. Crowe, CEO of Level 3.
Communications cash revenue for the third quarter was $395 million. Communications cash revenue is defined as communications revenue plus changes in cash deferred revenue. Communications cash revenue includes upfront cash received for dark fiber and other capacity sales that are recognized as GAAP revenue over the life of the contract, generally ranging from 5 to 20 years.
Communications GAAP revenue for third quarter 2001 was $319 million, a 25 percent increase over the same period last year. The increase was a result of existing customers purchasing additional services as well as new customer contracts.
Included in total communications GAAP revenue was $233 million of communication services revenue, $60 million of non-recurring revenue from dark fiber sales and $26 million attributable to reciprocal compensation. Communications revenue, excluding non-recurring dark fiber revenue, increased 69 percent to $259 million, up from $154 million for the same period last year.
In June 2001, the company announced its intent to focus sales efforts on more established companies with substantial communication services needs. In line with this initiative, the company had approximately 2,100 customers at the end of the quarter . down from 2,275 as of the end of the second quarter. Approximately 77 percent of the customer base currently purchases more than one Level 3 service.
Other revenue of $56 million for the third quarter included $30 million from (i)Structure and $20 million from coal mining, versus (i)Structure revenue of $30 million and coal mining revenue of $50 million for the same period last year.
Consolidated cost of revenue for third quarter 2001 was $150 million, representing a 25 percent decrease from the third quarter 2000 and a 29 percent decrease from the second quarter 2001. Gross margin for the communications business was 64 percent for the quarter, up from 38 percent for the same period last year and 47 percent for the second quarter.
Our gross margins, which we believe are among the best in the industry, are clear evidence of the efficiency of our network infrastructure, said Kevin O’Hara, president and COO of Level 3. Over the next several quarters we expect continued improvements in this key measure of performance.
SG&A expenses were $249 million for the third quarter, versus $260 million for the second quarter, which excludes $101 million of restructuring charges, and versus $237 million for the same period last year.
