DSL.net posts narrower loss

DSL.net today reported it has managed to raise new financing, fund strategic acquisitions and add new services in the second quarter while managing to post a narrower loss.

DSL.net saw a 7% improvement in its earnings, posting a loss of $8.7 million in the quarter ending June 30, compared to the $9.4 million loss it posted the same quarter in 2002. Revenues rose 56% to $18.6 million and gross margin improved 58% to $4.7 million. DSL.net executives project the company will become adjusted EBITDA positive by the third quarter of 2004.

The northeastern T-1 and DSL carrier, however, pulled off one of the most talked about acquisitions in the second quarter, scooping up voice-over-IP provider Talking Nets. DSL.net said the carrier now has 1000 access lines equipped with voice from the acquisition and beginning this quarter, will begin offering an integrated packet voice and data offering to small and medium businesses in the New York metro area. DSL.net also launched frame relay services last quarter.

CEO David Struwas said the acquisition is of major significance to the carrier because it now allows it to present a low-cost integrated offering to its customers from its own facilities. It also saves DSL.net the expense of building out its own voice network.

DSL.net also announced a $30 million financing round led by Deustche Bank.