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tw telecom, Thanks in Part to ‘Sales on Steroids,’ Shows Higher Q4 Earnings

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tw telecom inc., which specializes in business Ethernet services, this week reported higher net income and revenue for the fourth quarter of 2012.

The Littleton, Colo., provider also talked about some of its plans for the indirect channel.

First, net income rose to $17.3 million from $16.4 million in 2011’s fourth quarter. Next, revenue also increased, by 7.5 percent, from $351.1 million to $377.9 million. tw telecom attributed the growth to higher enterprise uptake. To that point, enterprise customers hungry for data and Internet services contributed $28.4 million, or 10.4 percent, more in the fourth quarter compared to the same quarter a year earlier. Overall, here are the revenue percentage changes tw telecom recorded in the fourth quarter of 2012:

  • 15.2 percent increase for data and Internet services, thanks mostly to Ethernet and VPN products;
  • 6.1 percent increase in voice services;
  • 5.2 percent decrease in network services, reflecting churn and repricing for contract renewals mostly in transport services, which outpaced growth in colocation services.

Meanwhile, Larissa Herda, CEO of tw telecom, told analysts on an earnings conference call that channel partners helped contribute to the company’s fourth-quarter results. As a result, tw telecom expects to beef up its indirect channel support.  

“Were continuing to add management resources and sales resources,” she said, according to a transcript from SeekingAlpha. “The nice thing about [channel partners] is once you get in and you train them… theyre kind of like sales on steroids so its a little bit of a quicker impact to revenue.”


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