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tw telecom Reports $2.9M Profit, Despite Churn

tw telecom Inc. (TWTC) ended Monday on a slightly down note, even though it had reported a profit for the first quarter of 2009.

The Colorado-based service provider, which specializes in business Ethernet, netted $2.9 million in the three months ended March 31, compared to a loss of $4.8 million in the first quarter of 2008. Sales were up, too, by 5 percent, from $282.6 million to $297.6 million.

This also marks the second quarter in a row that tw telecom’s reported a profit.

However, the provider did experience more churn in the first quarter than it did in the first or fourth quarters of 2008. tw telecom attributed the losses to customers’ economic struggles and to its getting rid of customers that are smaller than it wants to serve.

For many channel partners, that last point has been a sore spot.

tw telecom released its earnings after the bell on Monday – its stock closed down 19 cents to end at $10.


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