This morning, Level 3 Communications continued the earnings parade when it announced a third-quarter net loss of $174 million, or 11 cents per share, versus its year-ago loss of $138 million, or 12 cents per share. The firm stated that it missed its own targets in the quarter as it wrestled with provisioning-capacity problems. Chief Executive James Crowe said in at statement released by the company, We are disappointed by our performance, particularly given the strength of the current market. He said the company is lowering its operating cash flow forecasts for 2007 and 2008.

The equity has gapped sharply lower this morning and is currently down 14.7%. The stock has tagged a new annual low of $3.66 and is approaching former support at the 3.40 level.