Oct 25, 2002 12:00 PM,

CLEC revenues boost CT Communications results

Vince Vittore

CT Communications today announced a 4% increase in quarterly revenue in large part due to an expansion of its CLEC and Greenfield operations.

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Revenues for the third quarter were $37.0 million, compared to the same quarter in 2001. Net loss for the quarter of 2002 was $400,000 or 2 cents per diluted common share, which included a $1.1 million restructuring charge and a $3.3 million asset impairment charge related to the reduction of its web development group and the shutdown of its fixed wireless assets in Fayetteville, N.C.

Net income for the third quarter, excluding these charges, was $2.1 million, or 11 cents per diluted common share.

Driving much of the revenue gain was the company’s CLEC group, which recorded revenue of $4.0 million, an increase of 42% over revenues of $2.8 million in the third quarter of 2001. The unit, which operates as CTC Exchange Services, saw a 47% increase in access lines to 26,202 lines. The company’s Greenfield operation, which provides communication packages through builders and developers, saw its revenue jump 165% to $1.2 million in the third quarter of 2002, compared to revenues of $400,000 in the year ago quarter.

ILEC revenue from the company’s Concord Telephone group was $23.4 million for the quarter, a decrease of 2% compared to third quarter 2001 revenues of $24.0 million. DSL revenues, reported as part of the company’s Internet group, increased 95% from the same quarter last year.

Matthew Dowd, senior vice president of CT, said the company is anticipating slightly slower growth in DSL for the remainder of the year in part because of the gains already made. “The third quarter was a particularly strong quarter for us with the back to school crowd. There is some seasonality there.”