tw telecom inc., a provider of managed voice, Internet and data networking solutions to businesses, grew its second-quarter profit on higher revenues over the previous three-month period.
Revenues climbed 1.8 percent sequentially and 6.8 percent year over year to $338.4 million.
Littleton, Colo.-based tw telecom announced its results after the markets closed. Donna Jaegers, a senior analyst with D.A. Davidson & Co., said the companys earnings were in line with expectations.
Earlier in the day, tw telecom may have been another victim of a panic in the financial markets after Standard & Poors downgraded the credit rating for the U.S. government.
The price of tw telecom shares on Monday fell to a 52-week low ($16.04). The stock price closed at $16.05 on the NASDAQ, down $1.45 or 8.29 percent.
Tech stocks overall got hammered Monday morning. The (tw telecom) stock got hit due to the overall market sell-off,” Jaegers said.
In the second quarter, the telecommunications provider posted net income of $14.3 million, reflecting a moderate increase from a profit of $12.6 million in the first quarter. In the period a year ago, tw telecom brought home a profit of $242.3 million, but that figure included the impact of a non-cash income tax benefit of $227.3 million.
The company served 27,322 customers at the end of June, down slightly from 27,460 customers a year ago. tw telecom ended the quarter with $509.3 million in cash, equivalents and short-term investments.
Were headed into the second half of the year with strong sales momentum and ongoing growth initiatives designed to drive greater differentiation, increased customer value and additional market share,” said Larissa Herda, tw telecom chairman, CEO and president.