XO Q4 Profits Sag But Sales Hit a Good Note

XO Communications (XOHO.OB) profits sagged in the fourth quarter of 2009, hitting $13.3 million, down from $21.5 million in the year-ago period.

The service provider’s sales, however, totaled $375.8 million in the three months ended Dec. 31, $0.6 million more than the $375.2 million in the same quarter a year earlier.

For all of 2009, XO said on March 31 it saw $1.5 billion in revenue, a 3 percent, or $43.7 million, increase from 2008. Operations losses for the year amounted to $47.2 million, compared to $84.8 million in 2008, while net income reached $21.8 million. That was in contrast to a net loss of $75.3 million in 2008.

XO said services including broadband access, Ethernet, IP private and wavelength for businesses and other carriers all recorded significant growth in 2009 while the legacy and TDM products continued their anticipated decline.

The company also said it plans to raise more capital – although without relying on high-interest debt or burdensome covenants – so it can continue to upgrade and operate its fiber network. XO also said in its earnings release that acquiring other CLECs remains an option.

XO closed out the week with a share price of 74 cents, down 1.33 percent.


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