tw telecom (Nasdaq: TWTC) reported that strong Ethernet and VPN product sales in Q1 2013 drove up data and Internet services revenue 14.3 percent, or $25 million year-over-year, to $202 million.
Data and Internet revenue now represent 53 percent of the CLEC's total revenue, up from 49 percent in the same period a year ago. What helped drive an overall $23 million rise in data and Internet revenues was an increase in sales to enterprise customers.
In addition to data services, tw telecom reported that voice services rose 3.1 percent due to an increase in sales of converged and other voice solutions. Voice revenue represented 24 percent of total revenue, down from 25 percent in Q1 2012.
However, it reported that network services declined 7 percent, or $1 million, which it said reflects the "net impact of churn and repricing for contract renewals."
Likewise, it reported that a $1 million decrease in revenue from carriers was due to churn and repricing for contract renewals, largely offset by growth in Ethernet services.
Overall company revenue was $381.2 million, up 6 percent or $22.3 million, from $358.9 million in Q1 2012.
Shares of tw telecom were trading at $27.24, up 0.90, or 3.42 percent, in late morning trading Tuesday on the Nasdaq stock exchange.
- see the earnings release
Earnings roundup: Wireline telecom earnings in the first quarter of 2013
tw telecom, Level 3 dominate the competitive Ethernet market