Cloud services provider Alteva (NYSEMKT:ALTV) reported that unified communications (UC) revenues jumped 12 percent year-over-year to $4 million, contributing 54 percent of the company's total revenues.
Overall company revenues were $7.5 million, up 7 percent from $7.1 million in Q3 2012. Likewise, gross profit increased by 21 percent to $4.4 million in the third quarter of 2013 from $3.6 million for the same period in 2012.
Alteva said that the improvement in gross profit is the result of two factors: an increase in UC segment revenues and reducing costs by selling the USA Datanet assets and a workforce reduction in the Telephone segment.
"While we expect our UC revenues to increase at an annual growth rate comparable to that of the overall UC market, we are committed to this growth with an emphasis on profitability and margin enhancements," said David Cuthbert, Alteva's president and CEO, in the earnings release. "Our sales and marketing efforts are successfully positioning Alteva as a premium service provider for middle market business customers."
Driven by the addition of new clients and an increase in services to existing customers, the UC segment contributed approximately 54 percent of revenues in the third quarter of 2013 as compared with 51 percent for the same period in 2012.
Telephone revenues from its existing rural telco business were $3.5 million, up slightly from $3.4 million in the same period a year ago.
The service provider said that telephone revenues were "slightly higher as a result of an increase in access lines rates and modest growth in broadband Internet services revenues, partially offset by access line losses."
Shares of Alteva were listed at $7.93, up 17 cents, or 2.19 percent in Wednesday morning trading on the New York Stock Exchange.
- see the earnings release
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