(RTTNews) - Monday after the closing bell, Time Warner Telecom Inc.
(TWTC), a provider of managed voice and data networking solutions, reported a narrower net loss for the first quarter, helped by solid revenue growth and strong demand from enterprise customers.
The company posted a net loss of $0.9 million or $0.01 per share for the first quarter, compared to a net loss of $13.8 million or $0.10 per share in the prior year quarter. On average, fifteen analysts polled by First Call/Thomson Financial expected a loss of $0.03 per share for the first quarter.
Revenue for the first quarter increased 8% to $282.6 million from $261.4 million in the same quarter last year. Eleven analysts had consensus revenue estimate of $284.36 million for the first quarter.
In the preceding fourth quarter, Time Warner Telecom posted a net loss of $5.29 million or $0.04 per share and revenue of $279.48 million.
Among others in the industry, AT&T Inc.
(T) reported net income for the first quarter of $3.46 billion or $0.57 per share, up from $2.85 billion or $0.45 per share in the previous year quarter. Adjusted net income was $4.5 billion or $0.74 per share, compared to $4.1 billion or $0.65 per share in the year-ago quarter. AT&T's total operating revenues for the first quarter climbed 6.1% to $30.74 billion from $28.97 billion in the same quarter last year.
Another peer, Qwest Communications International Inc.
(Q) reported that its net income for the first quarter declined to $157 million or $0.09 per share from $240 million or $0.12 per share in the prior year quarter. The company's first-quarter operating revenue declined 1.4% to $3.399 billion from $3.446 billion in the previous year quarter.
Verizon Communications Inc.
(VZ) said its net income for the first quarter increased to $1.64 billion or $0.57 per share from $1.49 billion or $0.51 per share a year ago. Excluding special items, the company's net income for the first quarter was $1.74 billion or $0.61 per share compared to $1.63 billion or $0.56 per share in the previous year quarter. Verizon's total operating revenues for the quarter came in at $23.83 billion, up 5.5% from $22.58 billion in the same quarter of last year.
Meanwhile, Time Warner Telecom's revenue from data and internet services rose 33% to $92.8 million from $69.9 million in the previous year quarter. Voice services' revenue grew 4% to $83.1 million from $79.9 million, while service revenue was $272.7 million, up 9% from $249.8 million in the preceding year quarter. Enterprise revenue increased by 16% over last year.
Intercarrier compensation generated revenue of $9.9 million, down 15% from $11.6 million in the prior year quarter. Network services' revenue declined 3% to $96.8 million from $99.9 million in the previous year quarter.
Monthly revenue churn was 1.1% for the first quarter of 2008, compared to 1.2% in the year-ago quarter. Customer churn remained flat with 1.4%.
Gross margin for the first quarter rose 12% to $161.8 million from $144.0 million in the prior year quarter. Excluding non-cash stock-based compensation expense, modified gross margin improved 12% to $162.7 million from $144.9 million in the year-ago quarter.
Excluding integration investments, capital expenditures were $57.7 million for the latest quarter, up 17% from $49.2 million in last year, due to strong customer driven capital investments including expanded network capacity.
In addition, Time Warner Telecom said it will rebrand itself as tw telecom on July 1, 2008. The company expects to spend $6 million to $7 million in 2008 for branding related costs, which includes up to $2 million in capital expenditures related to the name change.
During the latest quarter, the Littleton, Colorado-based company had 31,200 customers, which came down from 31,431 customers in the prior year quarter.
Looking ahead, for 2008, Time Warner Telecom anticipates total capital expenditures of $250 million to $274 million.
Stock movement
Time Warner Telecom closed Monday's regular trading session at $19.06, up 4 cents on a volume of 3.22 million shares compared to a 3-month average of 2.53 million shares.
For comments and feedback: contact editorial@rttnews.com