Lumos Networks revenue drops to $51.6M, but maintains 2013 guidance

Lumos Networks (Nasdaq: LMOS) reported that while its Q3 2013 results declined sequentially to $51.6 million from $52.3 million, it saw an uptick in both carrier and enterprise data revenues.

Total EBITDA was $23 million for the third quarter of 2013, compared to $22.3 million in the third quarter of 2012 and $24.6 million in Q2 2013.

Carrier and enterprise data revenues rose to $15.4 million and $10.2 million, respectively, due to strong demand from wireless operators for backhaul services and large enterprise customers. Overall strategic data revenue was $30.4 million, up from $29.9 million in Q2 2013.

Tim Biltz, CEO of Lumos, said in the earnings release that strategic data was "equal to nearly 59 percent of total revenue."

As of the end of the quarter, the telco had lit up a total of 540 wireless cell sites, which it says represents a 107 percent year-over-year increase. The service provider expects to end the year with a total of 600 installed fiber to the tower (FTTT) sites and maintains its target for 1,500 within the next few years.

On the business services side, Lumos also lit its 100G-capable metro fiber network in Richmond, Va., and has already pre-sold about $1.4 million in annualized revenue, the majority of which is strategic data services.

In related news, Lumos announced that it is now offering Metro Ethernet services in Richmond, including to its anchor customer HCA Virginia, which is connecting 10 of its locations to the service. It added that it has also "already won several major enterprise and carrier network accounts."

IP services, legacy voice and access declined to $4.75, $14.1 and $7.2 million, respectively.

Looking toward Q4 and the total year, Lumos has forecast revenues to be $51 to $52 million with adjusted EBITDA at $24 to $25 million. It has maintained its full year 2013 revenue guidance of $208 million, and $97 million for adjusted EBITDA.

Shares of Lumos closed at $24 at the end of the trading day on Wednesday on the Nasdaq stock exchange. 

For more:
- see the earnings release

Earnings summary: Wireline telecom earnings in the third quarter of 2013

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