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LYNS Press Release: First Quarter 2011 Revenue $18.6 Million

May 14, 2011

Read the full 10-Q hereRed highlights are mine.
JC

http://finance.yahoo.com/news/Lightyear-Network-Solutions-bw-2320351516.html?x=0&.v=1

Lightyear Network Solutions Reports Increased Revenue and Gross Margins for First Quarter 2011
Revenues Increase 65% to $18.6 Million
Gross Margins Increase 81% to $6.6 Million

Companies:  Lightyear Network Solutions, Inc.

Press Release Source: Lightyear Network Solutions, Inc. On Friday May 13, 2011, 7:30 am EDT

LOUISVILLE, Ky.–(BUSINESS WIRE)– Lightyear Network Solutions, Inc. (OTCBB:LYNS.obNews), a provider of telecommunications services to business and residential customers throughout North America, local and long distance service, wireless services, conferencing, enhanced Internet services and Voice over Internet Protocol (VoIP), today announced its financial results for the first quarter 2011 ended March 31, 2011. Results for the first quarter of 2011 include Lightyear’s acquisition of SouthEast Telephone, which was completed on October 1, 2010.

Financial highlights for the first quarter include:

  • Revenue of $18.6 million for the first quarter 2011 increased 65.3% from $11.3 million in the year-ago quarter;
  • Gross profit of $6.6 million increased 80.7% over the first quarter 2010;
  • Gross profit margins increased 300 basis points for the quarter to 35.4% from 32.4% in the year-ago quarter;
  • Loss from operations reduced to $581 thousand from $930 thousand in the year-ago quarter;
  • EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) improved to a loss of $161 thousand compared with an EBITDA loss of $870 thousand in the year-ago first quarter; Net loss of $336 thousand compared with a net loss of $1.3 million in the year-ago first quarter;
  • Net loss to common stockholders, including $375 thousand of cumulative preferred stock dividends, was $711 thousand, and compared with a net loss of $1.3 million in the year-ago first quarter;
  • Net loss per common share, including the cumulative preferred stock dividends, was $0.03 for the quarter, and compared with a net loss of $0.09 per share for the year-ago first quarter.

Stephen M. Lochmueller, CEO of Lightyear said, “Our results for the quarter were favorably impacted by our acquisition of SouthEast Telephone, which has already had a significant impact on our financial results on revenue and gross profit. It provided us with additional network infrastructure that is enabling us to lower costs on our existing business. We have already implemented a number of steps that will provide us the ability to lower our operating costs. We expect to continue to see improvements in our operating efficiencies as we realize the full benefits of our integration with SouthEast Telephone.”

Mr. Lochmueller continued, “We currently have approximately 60,000 customers with a significant concentration in 5 states, providing us strong regional customer concentrations in contiguous operating areas, along with operating efficiencies. With a large number of customers in the rural markets, we believe we have a significant amount of upside potential to provide our portfolio of services.

“While the first quarter has historically been our weakest quarter, we produced several positive results. Since becoming a public company, this was our first year-over-year quarterly revenue growth in the core company, demonstrating that our sales and product approaches are correctly tuned for the market. This improved revenue base provides us a good foundation for the remainder of the year. Our first quarter was affected by several charges totaling approximately $477 thousand that were taken in the first quarter, and which we do not expect to recur,” he continued.

Mr. Lochmueller concluded, “We are pleased with our company’s progress and expect continued growth in 2011.”

About Lightyear Network Solutions, Inc.
Through its wholly owned subsidiaries, Lightyear Network Solutions provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear’s product offerings include local PRI and digital T1, enhanced Internet services, MPLS, Ethernet, Voice over Internet Protocol (VoIP), local and long distance service, and conferencing. Lightyear also offers wireless services to customers in the U.S. through wholesale contracts with multiple wireless providers. Lightyear built its own VoIP network in 2004 to enhance its product offerings and has partnered with some of the most prominent names in telecom including: Sprint, Verizon, AT&T, Level 3, PAETEC, CenturyLink, XO Communications, Intelliverse, BroadSoft, Cisco and ADTRAN. Lightyear Network Solutions is headquartered in Louisville, Ky. Additional information can be found at: www.lightyear.net.

Forward-Looking Statements
This press release contains “forward-looking statements” for purposes of the Securities and Exchange Commission’s “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Lightyear’s actual results to differ materially from those currently anticipated. These forward-looking statements may include, without limitation, statements about our marketing and acquisition opportunities, business strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, the risks and uncertainties which could cause our actual results to differ materially from those currently anticipated includes changes in market conditions, our ability to integrate acquired operations, the ability to obtain additional financing on satisfactory terms, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and risk factors described in our filings with the Securities and Exchange Commission. Lightyear undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

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