After a rough first quarter that saw its net loss quadruple in just one year’s time, XO Holdings reported better second-quarter numbers this week.
The Virginia-based CLEC says it lost $1.2 million in Q2, compared to $6 million in Q2 2009 and a whopping $16.6 million in Q1 2010.
Total revenue for Q2 2010 was $383.6 million, down just 1 percent from the year-ago period. The company says the drop was primarily due to targeted price increases within XO's wholesale long-distance services, which were implemented to improve margins on selected routes.
"While we, like other wireline telecommunications services providers, continue to face short-term challenges, we remain bullish on the long term potential for the company," said Carl Grivner, XO Communications CEO.
XO’s revenue was boosted in the second quarter by its broadband offerings such as IP-VPN, Ethernet, Dedicated Internet Access and IP Flex, which generated $220 million, up 13 percent from the same period one year ago.
Traditional Legacy/TDM services decreased by $8.8 million compared to the same period last year, the company said. But that comes as little surprise, as XO’s strategy is to move away from traditional telecommunications services toward a broadband-driven business model.
For the week, shares of XO are trading up 3 cents, at 63 cents.
