CHARLOTTE …Â Despite having to take an accounts receivable hit because of WorldCom’s bankruptcy, telecommunications provider US LEC (Nasdaq: CLEC) posted a 37 percent increase in revenue during the second quarter.
Still, the company lost $24 million, or 91 cents a share, during the quarter, compared with an $18.4 million loss a year ago. US LEC reported revenue of $58.8 million during the most recent quarter, up from $43.1 million in the second quarter of 2001.
The most recent quarter includes a $9.5 million writeoff for doubtful accounts related to WorldCom’s recent bankruptcy filing.
For the six-month period, the company lost $39.1 million, or $1.48 per share, on $112.7 million in revenue, compared with losses of $36.7 million on $81.1 million in revenue during the first half of 2001.
“US LEC has again achieved very solid results in an economic environment that has been particularly difficult for the telecom industry,” Chief Executive Frank J. Jules said in a statement. “Like others in the industry, we were affected by WorldCom’s bankruptcy filing. However, our business is stronger than ever.”
The company’s customer base grew by 12 percent in the quarter to reach more than 8,400 medium to large business customers, and its data customers increased by 22 percent, Jules said. The company also reduced its long-term debt and recorded its seventh straight quarter of improving its operating income, he said.
US LEC: www.uslec.com
