HickoryTech's Q1 revenue up 22% on strong fiber, data sales

HickoryTech Corp. (Nasdaq: HTCO), an independent ILEC that serves various upper Midwest states, reported first-quarter 2012 revenue of $46.9 million, a 22 percent year over year increase, a result of strong equipment, fiber and data sales.

The Mankato, Minn.-based ILEC's earnings for the quarter ended March 31, rose 8 percent to $2.3 million, while earnings per share totaled 17 cents per diluted share, up 6 percent from the same period last year.

"Our business product lines continue to produce excellent results and drove the strong revenue increases in the first quarter, giving us a solid start to the year," John Finke, HickoryTech's president and chief executive officer, said in the earnings release.

Here's a breakdown of its key segment results:

  • Fiber and data: The service provider reported that Q1 2012 fiber and data segment revenue of $13.4 million, up 22 percent year over year, a factor it attributed to strong commercial and wholesale transport and data service sales, in addition to the IdeaOne operations it acquired in March. Fiber and data segment operating income totaled $2.3 million in Q1 2012, a 58 percent year-over-year increase.
  • Equipment: Driven by an 87 percent rise in hardware sales, total Q1 2012 equipment segment revenue was $17.4 million, up 67 percent, year-over-year. The service provider's equipment segment revenue was $820,000 in Q1 2012, up $322,000 or 65 percent, year-over-year.
  • Telecom: The telco's Q1 2012 Telecom Segment revenue declined 6 percent year-over-year, to $16.7 million, a factor it attributed to expected declines in both traditional local access and network access revenue. Likewise, Telecom Segment net income was $1.3 million, down 24 percent from Q1 2011. Network access revenue totaled $4.9 million, down 16 percent year- over-year, while local service revenue totaled $3.4 million, down 7 percent from 2011. Meanwhile, broadband revenue, which includes DSL, Internet, Data and Digital TV, remained flat at $5 million. One growth spot in the telco's Telecom Segment was bill processing where revenue rose 64 percent year over year to $1.2 million.

HickoryTech is maintaining its 2012 projections, with revenues expected to be in the range of $177 million to $183 million, and net income of $7.6 million to $8.6 million.

The service provider's stock was trading at 10.24, up 0.31 cents in morning trading on the Nasdaq stock exchange.

For more:
- see the release

Special report: Wireline in the first quarter of 2012

Related articles:
HickoryTech completes acquisition of IdeaOne
HickoryTech acquires IdeaOne Telecom, bulks up broadband, business holdings
HickoryTech's Enventis enters telepresence service game
HickoryTech ups its quarterly cash dividend
HickoryTech's Enventis begins work on $24M middle mile project

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