Alteva (NYSE MKT: ALTV), a cloud services provider that grew out of its rural telco roots as Warwick Valley Telephone (WVT), reported that unified communications (UC) services contributed nearly 50 percent to its Q4 2012 consolidated revenues.
As with other telcos, Alteva is seeing its next-gen IP-based services like UC take up a larger piece of their revenue pie. Fourth-quarter UC revenues were $3.4 million, up 10.7 percent from $3.1 million in the same period last year.
To improve the experience for its wholesale customers, Alteva began offering Tier 1 and Tier 2 customer support to companies that resell Alteva's industry leading communications service platform.
Alteva said that the "increase in UC revenues was primarily attributable to organically generated UC services revenue growth."
However, in its legacy telephone service business, revenue declined to $3.5 million from $4 million in the same period a year ago.
The telephone segment contributed only about 50 percent of Q4 2012 revenues, down from 57 percent in Q4 2011 due to what Alteva said was lower Universal Service Fund (USF) revenues. Besides the decline in USF revenues, Alteva saw the effects of customer wireless substitution and cable competitors offering triple play bundles to consumers.
Overall company revenues were $6.9 million, down from $7.1 million in Q4 2011.
The past year has been a time of transition for Alteva. After transferring its regulated telephone assets and businesses to one of its subsidiaries, it reorganized the company into an unregulated holding company in November and changed its stock ticker symbol to ALTV in January.
Topping off its changes, the service provider named David Cuthbert as its new CEO this month. Earlier, Cuthbert was the CEO and President of Alteva, LLC before it was purchased by WVT Communications in 2011.
Shares of Alteva were listed on Wednesday at $10.32, up 0.08, or 0.78 percent, at the end of the trading day on the New York Stock Exchange.
- see the earnings release
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