Trinsic Inc., the former Z-Tel Technologies Inc. that has relied heavily on UNE deals to provide its services, reported a $6.9 million drop in revenue for the second quarter of 2006.
The CLEC also suffered a net loss of $2.8 million, or 15 cents per share, compared with a net loss of $3.3 million, or 59 cents per share, for the second quarter of 2005.
Trinsic now focuses on selling enhanced circuit-switched and IP telephony products, although it has decided not to provide wholesale services anymore.
“During the second quarter, we completed the purchase of the final set of UNE-P local access lines from Sprint for which we previously provided services on a wholesale basis, explained Trey Davis, Trinsics CEO. In total, the acquisition increased our company-owned customer base by approximately 111,700 lines. Since these purchased access lines represented the entirety of Trinsic’s wholesale business, we will no longer provide wholesale services.
Davis said Trinsic will sell nearly all of its residential and small business lines within BellSouth Corp. territories during the third quarter. The sale will generate cash for the company’s operations and permit us to focus our efforts on markets in the Midwest and Northeast,” Davis said.
Trinsic ended the second quarter with $0.7 million in cash. In June 2006, the company sold a building for $0.4 million, using the proceeds to reduce debt.
Trinsic Inc. www.trinsic.com