LITTLETON, Colo., Aug. 7 /PRNewswire-FirstCall/ -- Time Warner Telecom
Inc. (Nasdaq: TWTC), a leading provider of managed voice and data networking
solutions for business customers, today announced its second quarter 2007
financial results, including
"We continue to deliver strong organic enterprise revenue growth, drive sales momentum, and achieve solid margins while integrating a major expansion of our operations," said Larissa Herda , Time Warner Telecom's Chairman, CEO and President. "We have made substantial progress in all phases of our integration which includes organizational, network and systems changes that impact virtually all aspects of our business. We achieved this progress while accelerating the growth of our enterprise business. Integrating our operations and continuing to leverage our ability to serve the growing enterprise demand is where we are focused and why we are well positioned to capture greater market share."
Highlights for the Quarter
"Core(2)" operations exclude the results from acquired operations and related integration costs. "Acquired(3)" operations exclude integration costs. Both core and acquired exclude the impact of a reclassification of certain fees and taxes(4).
Revenue for the quarter was
Monthly revenue churn was 1.1% for both the current quarter and the same period last year; however this reflects a decrease from the prior quarter which was 1.2%. The Company expects to experience ongoing revenue churn, including disconnects from carrier customers related to their merger activities and network grooming.
Growth in the core operations customer counts remained strong.
Consolidated customer counts decreased due to a higher churn rate for the
acquired operations' customer segment, as well as conversion of the acquired
customer base to a common customer profile(12) during integration. The
acquired customer churn had an impact of less than
M-EBITDA and Margins
M-EBITDA margin was 31% for the quarter as compared to 36% for the same quarter last year. Modified gross margin(11) was 57% for the current quarter compared to 64% for the same period last year. The difference in margins between periods primarily reflects higher access costs related to the acquired operations.