XO Communications Inc.

11111 Sunset Hills Rd.

Year founded: 1994

Industry: Telecommunications

Post 200 Category: Top 125 Companies

Revenue: $1.30 Billion

Net Income/Loss: ($405,543,000.00)

Earnings per share: ($2.57)

Dividend: n/a

Stockholder equity: $485.55 Million

Auditor: KPMG LLP

Stock: XOCM

Assets: $1.46 Billion

Market capitalization: $405.71 Million

52-week high: 5.55 4/27/2004

52-week low: 2.2 4/5/2005

Chairman: Carl C. Icahn

President and CEO: Carl J. Grivner

Employees: 4800

Local employees: 473

Description: XO Communications sells communications services, including telephone and Web services, to business customers. It serves more than 180,000 customers in the United States.

Developments: In June, XO completed its $322 million acquisition of Allegiance Telecom, a move that almost doubled XO's customer base, especially among small and medium-size businesses. The companies merged after both had shed debt in bankruptcy proceedings, but XO's sales were still steadily eroding and its losses expanding. XO is now focused on trying to squeeze savings from the deal by consolidating the companies' assets, moving customers onto one network and cutting $160 million in costs from the merged business. The combined company initially had 6,700 employees; now it is down to 4,800. XO is also trying to expand its product offerings. In March 2004, it introduced an Internet-calling service, and it is considering introducing a wireless-Internet technology that will enable it to serve local customers without leasing lines from regional phone companies. Meanwhile, the industry around XO is evolving. Regulatory changes raising the rates to lease certain phone lines from regional phone companies shifted the balance of power further in favor of XO's rivals. One of its main competitors, SBC Communications Inc., announced it would purchase AT&T Corp., which had been an XO ally on many regulatory and policy issues. Ashburn-based MCI could also be sold to a regional phone giant soon, which would leave XO the largest non-regional provider of local, long-distance and Internet service in many markets. "We'll be the last big alternative player remaining," said Chad Couser, a spokesman for XO. Company officials hope that means more business opportunities as the pool of alternatives dries up. But in Washington, the industry's consolidation trends leave XO with fewer allies on Capitol Hill. "We will have to be more vocal with AT&T off the blocks," Couser said.