Lightyear Network Solutions expects to report a profitable fourth quarter.
The Kentucky-headquartered CLEC said on Thursday that, based on its unaudited results for the month of October, as well as ongoing activity, it should attain profitably for the three months ending Dec. 31. Lightyear reached that conclusion after showing a 70.4 percent increase in revenue in October, thanks in large part to the SouthEast Telephone acquisition.
By the end of October, Lightyear says its sales totaled $6.61 million, up from $3.88 million. Net income hit $2.23 million, up 77 percent from $1.26 million a year earlier. Given those numbers, and current trending, Lightyears Oct.-Dec. period is shaping up to be our strongest quarter to date, and we expect it to be the first quarter in which we will have reached profitability since we became a public company earlier this year,” J. Sherman Henderson III, CEO of Lightyear, said in a prepared statement.
Lightyear credits the projected profit to two general factors. First, the provider has added “many” new agents, Henderson said. Second, Lightyear has focused on selling higher-margin products and services, and eliminating the less profitable ones, said Lightyear President Stephen Lochmueller. Lightyear offers traditional telephony products but also specializes in technologies such as VoIP and MPLS.
We are confident that our continued focus on our combined acquisition and organic growth strategy will result in improved profitability through 2011,” Lochmueller said.
But Lightyears optimistic news didnt seem to give investors much confidence. By the time this story published on Thursday, Lightyears stock had last traded at 12:21 p.m. Eastern, down 12.06 percent to $2.99.