Thursday, telecommunications services provider SureWest Communications (SURW) reported a wider loss for the fourth quarter, despite a 35% increase in revenues.
The Roseville, California-based company reported a fourth quarter net loss of $2.13 million or $0.15 per share, wider than a net loss of $0.54 million or $0.04 per share last year.
SureWest's loss from continuing operations for the quarter was $1.55 million or $0.11 per share, compared to $36 thousand or breakeven per share in the same quarter last year.
Loss from discontinued operations net of tax for the quarter was $0.59 million compared to $0.50 million in the same quarter last year, and on a per share basis, was flat at $0.04 from the year-ago quarter.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenues for the quarter increased to $58.94 million from $43.76 million in the corresponding quarter of last year. Analysts had consensus revenue estimate of $61.25 million for the quarter.
Broadband revenues for the quarter increased to $37.00 million from $17.68 million in the same quarter last year, while telecom revenues decreased 16% to $22.01 million from $26.08 million in the year-ago quarter, due to an expected revenue loss in telecom residential and telecom access, partly offset by an increase in telecom business revenue.
SureWest indicated that the success in the Sacramento market was due to revenue growth related to the expansion and success of its data center space, as well an increased demand for fiber-based Wide Area Network services, which is driving large enterprise and carrier network revenues.
The company's income from operations for the quarter was $2.56 million, compared with a loss from operations of $1.35 million last year.
For fiscal year 2008, net income dropped sharply to $18.93 million or $1.34 per share from $62.94 million or $4.34 per share last year. Income from continuing operations for the period plunged to $0.83 million or $0.06 per share from $5.22 million or $0.36 per share in the previous year. Income from discontinued operations, net of tax, for the period was $18.11 million or $1.28 per share, compared with $57.72 million or $3.98 per share last year.
Revenues for 2008 increased to $230.37 million from $174.26 million in 2007.
Analysts expected the company to report earnings of $0.24 per share on revenue of $236.29 million for 2008.
SURW is currently trading at $9.75, down $0.45 or 4.41% on the Nasdaq.
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