Lightyear Network Solutions on Tuesday reported a third-quarter profit about a week after announcing an agreement that the company hopes will make its stock more favorable.
The Louisville, Ky.-based communications company posted net income of $103,000 on revenues of $17.4 million. In the quarter a year-ago, Lightyear reported a net loss of $828,000 on revenues of $11.6 million. The higher revenues reflect Lightyear’s October 2010 acquisition of SouthEast Telephone.
In the quarter ending Sept. 30, Lightyear posted a net loss per common share, including cumulative preferred stock dividends, of $0.01, versus a loss of $0.06 per share for the year-ago quarter. For the first nine months of the year, Lightyear reported a net loss per common share of $0.07. Lightyear CEO Stephen Lochmueller said the net loss per common share would have been reduced by 2 cents if the company had recorded a stock redemption as of Jan. 1.
Earlier this month, Lightyear announced completing a transaction to redeem all the outstanding shares of its convertible preferred stock. That means the company’s common stock is the only class of capital stock that is issued or outstanding, said the company, whose shares (symbol: LYNS) trade over the counter.
“By eliminating our convertible preferred stock, we believe this helps improve the attractiveness of Lightyears common stock and shows managements commitment to our common stockholders,” Lochmueller said in a press release on Nov. 7.