Revenue during the quarter dropped 4.36 percent to $4,209 million from $4,401 million in the previous year period. Gross margin for the quarter contracted 168 basis points over the previous year period to 55.14 percent. Total expenses were 85.01 percent of quarterly revenues, up from 84.37 percent for the same period last year. That has resulted in a contraction of 64 basis points in operating margin to 14.99 percent.

Operating income for the quarter was $631 million, compared with $688 million in the previous year period.

However, the adjusted operating income for the quarter stood at $602 million compared to $708 million in the prior year period. At the same time, adjusted operating margin contracted 178 basis points in the quarter to 14.30 percent from 16.09 percent in the last year period.

"CenturyLink's first quarter high-bandwidth data services revenues for Enterprise customers grew by 2% sequentially and 4% year-over-year, driven by increasing demand for higher-speed Enterprise data services as businesses continue their digital transformation," said Glen F. Post, III, CenturyLink chief executive officer and president. "This increasing demand further validates the rationale for our pending acquisition of Level 3 Communications, which will transform CenturyLink into the second largest domestic communications provider serving global enterprise customers.

For the second-quarter, CenturyLink, Inc. projects revenue to be in the range of $4,070 million to $4,130 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.46 to $0.52.

The company has spent $732 million cash to meet investing activities during the quarter as against cash outgo of $605 million in the last year period. It has incurred capital expenditure of $735 million on net basis during the quarter, up 21.69 percent or $131 million from year ago period.

The company has spent $333 million cash to carry out financing activities during the quarter as against cash outgo of $506 million in the last year period.

Cash and cash equivalents stood at $214 million as on Mar. 31, 2017, down 51.14 percent or $224 million from $438 million on Mar. 31, 2016.

Working capital remains negative
Working capital of Centurytel was negative $128 million on Mar. 31, 2017 compared with negative $900 million on Mar. 31, 2016. Current ratio was at 0.97 as on Mar. 31, 2017, up from 0.76 on Mar. 31, 2016.

Days sales outstanding went down to 21 days for the quarter compared with 39 days for the same period last year.

Debt comes down marginally 
CenturyLink, Inc. has recorded a decline in total debt over the last one year. It stood at $19,679 million as on Mar. 31, 2017, down 1.73 percent or $346 million from $20,025 million on Mar. 31, 2016. Total debt was 42.23 percent of total assets as on Mar. 31, 2017, compared with 42.14 percent on Mar. 31, 2016. Debt to equity ratio was at 1.48 as on Mar. 31, 2017, up from 1.43 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.98 for the quarter from 2.08 for the same period last year.