LITTLETON - Littleton-based tw telecom has reported second quarter revenue of $389.5 million, a gain of 6.9 percent year over year. Net income, however, was down slightly from the same period last year.
Net income was $17.3 million for the second quarter of 2013, compared to $19.3 million from the same quarter last year. Earnings per share were $0.12 for the quarter, compared to $0.13 for the same period last year.
tw telecom, Inc. provides managed IT services, including data networking, Internet access, voice, VPN, VoIP solutions, to U.S. and worldwide enterprises.
The company also announced a new $500 million share repurchase program. Earlier this year, the company fully retired its convertible debt in cash and executed a total of $278 million of share repurchases.
According to Mark Peters, tw telecom's Executive Vice President and Chief Financial Officer, the Board of Directors’ authorization of the $500 million share repurchase program, “underscores confidence in our long-term growth prospects and value proposition.”
"Our second quarter results demonstrate our ability to continue to successfully grow revenue, deliver healthy margins and generate cash flow while investing in the business," said Larissa Herda, tw telecom's Chairman, CEO and President. "We substantially increased our sales talent, launched new products and features and offered more innovative choices for enterprises that will further differentiate tw telecom in the marketplace."
Some other highlights reported for the second quarter:
- total revenue grew 2.2% sequentially and 6.9% year over year
- enterprise revenue grew 2.6% sequentially and 8.7% year over year
- data and Internet revenue grew 3.7% sequentially and 14.9% year over year
- $145.5 million of share repurchases were executed
- Cash settled $177.2 million par amount of convertible debt
The company reported it had approximately 28,500 customers as of June 30 and more than 29,000 fiber route miles, of which approximately 23,000 were metro miles.
Sales continued to grow in the second quarter compared to the same period last year and the prior quarter, officials say, although not at a high enough rate to sustain its 2012 revenue growth rate.
Second quarter performance by product sector showed:
- Data and Internet services revenue increased 14.9 percent. Data and Internet revenue represented 54 percent of total revenue for the quarter, compared to 50 percent a year ago.
- Voice services revenue increased 2.3 percent. Voice services revenue represented 24% of total revenue for the quarter, compared to 25% a year ago.
- Network services revenue decreased 5.4 percent. Network services revenue represented 20 percent of total revenue for the quarter compared to 23 percent a year ago.