Alteva reported that Unified Communications (UC) were once again the key revenue element in the service provider's third-quarter results, climbing 7 percent year-over-year to $4.3 million.
Excluding the Syracuse, N.Y., operations that were sold in September 2013, UC revenues rose 16 percent year-over-year.
The UC segment contributed about 57 percent of revenues in the third quarter as compared with 54 percent for the same period a year ago. Alteva attributes the increase in UC revenues to the addition of new customers and the increase in services to existing customers.
About 92 percent of third-quarter 2014 UC revenues were from licenses and services that Alteva expects to be recurring in nature, with the balance of revenues derived from equipment sales that were primarily related to new customer implementations.
As of the end of the third quarter of 2014, there were over 49,000 users on Alteva's hosted platform, which represented an increase of 19 percent of the installed base compared to the end of the third quarter of 2013.
Per the industry-wide trend, Alteva's traditional telephone revenues were $3.3 million, down from $3.5 million year-over-year. The telephone segment contributed approximately 43 percent of revenues in the third quarter of 2014 as compared with 46 percent for the same period of 2013.
Alteva said that telephone revenues were "slightly lower year-over-year as a result of continued access line losses and lower revenue from pooling arrangements," adding that the declines "were partially offset by an increase in access line rates earlier in the year and modest growth in broadband Internet services revenues."
In addition to the telephone segment losses, Alteva incurred a $0.6 million expense with a settlement it made with its former CEO David Cuthbert, who left the company in March, and a $0.4 million loss with the sale of the Syracuse operations.
One of the other notable events that took place at Alteva during the third quarter was the service provider received a non-binding letter of interest from Juniper Investment Company to acquire the company in August. After reviewing the proposal, Alteva's board rejected the offer.
From an overall financial perspective, Alteva's revenues were $7.6 million, up 1 percent from $7.5 million for the same period in 2013. Revenues rose 5 percent year-over-year excluding the revenue from the Syracuse operations.
Alteva's stock was listed at $7.09, up 4 cents or 0.58 percent, in Tuesday morning trading on the Nasdaq stock exchange.
- see the earnings release
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