US LEC Reduces Losses as Revenues Surge 13 percent
Posted May 2, 2006 12:06 p.m. EDT
CHARLOTTE, N.C. — Revenues at
(Nasdaq: CLEC) surged to $102.8 million in the first quarter, helping the telecommunications provider cut its losses.
The 10-percent increase in revenues over the same quarter of 2005 helped US LEC reduce losses to $7.1 million or 23 cents per share from $8.9 million or 29 cents a share.
The report sent US LEC shares down more than 7 percent to $3.83 in early afternoon trading. Analysts surveyed by Thomson First Call expected US LEC to report a 22-cent per share loss.
Revenues also increased $2.7 million from the fourth quarter of 2005.
US LEC now has more than 27,000 customers. Of those, more than 40 percent buy six or more USLEC product offerings.
The company, which offers telecommunications services across the South and Mid-Atlantic states, also reported a customer churn rate of less than 1 percent.
"US LEC is off to a strong start in 2006," said Aaron Cowell, US LEC's chief executive officer.