The company’s stock was trading at $15.02, down 3.22 percent, at about 11:30 a.m. Eastern.
Littleton, Colo.-based TW Telecom earned $11.1 million in the fourth-quarter, up from $899,000 in the year-ago period. Sales jumped 4.5 percent to $307.9 million from $294.6 million, despite customer turnover – that churn mostly stemmed from small businesses hurt by the economic downturn. The biggest revenue increase came from enterprise customers, which added $13.9 million more to the bottom line than 2008’s final quarter. Carrier sales, however, fell by $1.9 million. And intercarrier compensation revenue was up by $1.3 million.
Not surprisingly, voice services sales remained flat, while network services revenue dropped 5 percent. But sales of data and Internet products soared 16 percent, due in large part to Ethernet and IP platforms.
For all of 2009, TW Telecom reported net income of $27.6 million on revenue of $1.2 billion. That compares to an overall loss of $7.3 million in 2008 on revenue just under $1.2 billion.
TW Telecom ended the year with 28,000 customers and 2,870 employees, 522 of whom were in sales. The CLEC has veered away from distributing through many indirect channel partners as it focuses on higher-end clients rather than mom-and-pop businesses. That’s not to say TW Telecom doesn’t sell through the channel, though – rather, the company now works with just a select number of agents.
Looking ahead, TW Telecom expects to continue to confront “economic headwinds,” as Mark Peters, executive vice president and CFO, said in a prepared statement. But the CLEC boasts $471 million in cash and cash equivalents, is showing higher margins and says its projected capex spend of $275 million to $300 million in 2010 will be tied to new sales opportunities.
“We plan to further invest in growth initiatives including equipping our networks with new capabilities, launching new products and services, and implementing tools to better serve enterprise customers,” Larissa Herda, president chairman and CEO of TW Telecom, said in a press release. “All of these initiatives are focused on capturing greater market share and driving revenue growth.”
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December 14 2018 @ 18:50:05 UTC