The Regents - University of California | Office of The President

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WORLDCOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited. In Millions, Except Per Share Data)
For the Three Months Ended March 31,
2000 1999
Revenues $ 9,978 $ 9,122
Operating expenses:
Line costs 4,092 4,137
Selling, general & admin
Depreciation and amort.
2,299
1,147
2,374
1,101
Total 7,538 7,612
Operating income 2,440 1,510
Other income (expense):
Interest expense (218) (272)
Miscellaneous 111 (26)
Income before income taxes &
minority interests 2,333 1,212
Provision for income taxes 953 547
Income before
minority interests 1,380 665
Minority interests (79) 65
Net income
Distributions on subsidiary trust
1,301 730
and other mandatorily
redeemable preferred securities 16 16
Preferred dividend requirement 1 2
Net income applicable to
common shareholders $ 1,284 $ 712
2. Second Quarter 2000
61. On July 27, 2000, WorldCom issued a Press Release for its Second
Quarter 2000 financial results. WorldCom represented that it had “solid
profitability gains in the second quarter ended June 30, 2000, driven by revenue
increases in data, Internet and international services, combined with declining
access and technology costs.” WorldCom also recognized in the quarter a “onetime
after tax charges of $55 million associated with the termination of its merger
agreement with Sprint.” WorldCom further represented that for “comparative
purposes, the discussion of [financial] results excludes this non-recurring charge.”
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COMPLAINT