tw telecom Q2 revenues rise 7.7% on strong Ethernet, IP VPN sales
tw telecom (Nasdaq: TWTC) reported on Monday that its total revenues in the second quarter grew 1.6% sequentially over Q1 2012 and 7.7% year over year.
The Littleton, Colo.-based company's revenue rose 1.6 percent sequentially to $364.5 million, up from $358.9 million from Q1 2012 and 7.7 percent on a year-over-year basis from $338.4 million in the second quarter last year.
As has been the case in previous quarters, growth was driven by a rise in enterprise revenue. Enterprise revenue rose 2.1 percent sequentially and 10.9 percent year over year.
At the same time, data and Internet revenue, which the company says now represent 50 percent of its overall revenue, grew 3.2 percent sequentially and 15.4 percent year over year.
The increase in data and Internet services was driven by strategic Ethernet and VPN-based products, but partially offset by churn. It also saw an 8.8 percent increase in voice services, a factor it attributes to the sales of converged and other voice solutions.
Building on the success of its Ethernet and VPN-based growth, tw telecom also introduced a series of new products during the quarter including its Dynamic Capacity service and Enhanced Management services in late June.
"We achieved solid comprehensive financial results, including our 31st consecutive quarter of revenue growth, as well as strong margins and cash flow," said Larissa Herda, tw telecom's Chairman, CEO and President, in the earnings release. "We also delivered game changing new Intelligent Network services and further advanced new Ethernet capabilities.
However, the service provider did report that network service revenues declined 6.6 percent due to what it said was "churn and repricing for contract renewals largely in transport services, which outpaced growth in high capacity and colocation services."
Shares of tw telecom were trading at $24.00, up 0.14, or 0.61 percent, in late morning trading on the Nasdaq stock exchange.
- see the release
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