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Covad Improves Losses

Covad Communications Group Inc. on Thursday reported a first quarter 2006 net loss of $9.3 million, or 3 cents per share, up from the companys net loss of $26.8 million a year previously.

The results also are an improvement from the $17.9 million net loss, or 7 cents per share, the company recorded for the fourth quarter of 2005.

During the first quarter of 2006, Covad closed its acquisition of wireless broadband provider NextWeb and signed a $50 million financing deal with EarthLink. That agreement calls for the companies to expand wireline voice access to eight more cities.

Net revenue for the first quarter of 2006 totaled $117.8 million, an increase of 3.6 percent from the $113.7 million reported for the fourth quarter of 2005, as well as an improvement of 9.4 percent from the $107.7 million reported for the first quarter of 2005. Net revenue for the first quarter of 2006 included $1.7 million from a software license agreement.

Covads broadband and VoIP subscription revenue for the first quarter of 2006 came to $101.0 million, an increase of 2.8 percent from the $98.3 million reported for the fourth quarter of 2005. That also was an increase of 10.4 percent from the $91.5 million reported for the first quarter of 2005.

Wholesale subscribers, meanwhile, contributed $81.1 million of net revenue during the first quarter of 2006, or 68.9 percent, as compared to $80.1 million, or 70.5 percent, for the fourth quarter of 2005, and $76.3 million, or 70.8 percent, for the first quarter of 2005. Direct subscribers for the first quarter of 2006 contributed $36.7 million of net revenue, or 31.1 percent, as compared to $33.6 million, or 29.5 percent, for the fourth quarter of 2005, and $31.4 million, or 29.2 percent, for the first quarter of 2005.

Covad Communications Group Inc. www.covad.com

 


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