MCI Inc. said today it returned to profitability in the second quarter of 2005.
The company, which is being acquired by Verizon Communications Inc., had net income of $64 million, or 19 cents per share. That compares to a net loss of $71 million a year earlier, or 22 cents per share.
Sales fell 10 percent to $4.7 billion and dropped 2 percent from the first quarter of 2005.
Operating expenses and income also were down. The long-distance company said its operating expenses were down 11 percent from the same period last year, reaching $4.6 billion, due to restructuring, reduced severance expenses, lower bad debt costs and other efforts. Operating income, meanwhile, totaled $61 million, compared to $115 million in the first quarter of 2005 and $37 million in the year-earlier second quarter.
In the second quarter, we continued to launch next generation products and services, improve customer service and realize results from our cost reduction initiatives, said Michael Capellas, MCI president and CEO, in a news release. In the second half of the year, we will remain focused on executing in the marketplace and moving toward a timely completion of our merger with Verizon.
By mid-morning, shares of MCI were up .003 at $25.34.