tw telecom Inc. (TWTC), Monday reported a swing to loss from the year ago quarter, primarily helped by an increase in enterprise customer revenues as well as an increase in data and internet services product line. Higher gross margins also contributed to the profit for the quarter. Quarterly profit and revenues came in ahead of Street expectations.
Quarterly net income was $5.9 million or $0.04 per share, compared to a net loss of $3.2 million or $0.02 per share in the same quarter last year.
On average, fourteen analysts polled by Thomson Reuters expected the company to earn $0.03 per share for the second quarter. Analysts' estimates typically exclude special items such as one-time charges or gains.
Modified gross margin for the second quarter increased to 59.3% from 58.5% in the same quarter a year ago, an improvement of 80 basis points, which helped the company report higher operating income. Operating income for the quarter increased to $27.930 million from $22.494 million in the same quarter last year.
Revenues for the quarter rose 4% to $301.1 million from $290.2 million in the same quarter a year ago, topping analysts' estimate of $300.36 million.
Data and internet revenues for the quarter increased 35%, while voice revenues increased 1% from the same quarter last year.
Revenue churn for the quarter was flat with 1.3% in the same quarter last year, while the customer churn declined 1.5%.
For the quarter, the company also recorded an improvement in M-EBITDA to $108.9 million from $104.4 million in the same quarter last year, helped by a reduction in bad debt expense and network and other optimization efforts. Operating costs for the quarter declined to $123.219 million from $123.731 million in the corresponding quarter last year.
For the six-months period, net income was $8.792 million, compared to a net loss of $7.979 million in the same period a year ago.
Revenues for the period increased 5% to $598.690 million from $572.754 million in the comparable period last year.
TWTC closed Monday's regular trading at $10.50, up $0.16 or 1.55%, on a volume of 2.124 million shares on the Nasdaq.
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