Tag Archives: XO Communications News (OTCBB:XOHO)

XO Q2 2010

XO Holdings Reports Second Quarter 2010 Financial Results

XO Holdings, Inc. (OTCBB: XOHO) today announced its second quarter 2010 financial and operational results.Adjusted EBITDA was $40.5 million in the second quarter of 2010, an increase of $3.4 million compared to the year-ago period. Net loss in the second quarter of 2010 was $1.2 million, a decrease of 80% compared to the net loss of $6.0 million in the second quarter of 2009.

Total revenue for the second quarter of 2010 was $383.6 million, a decrease of $2.0 million, or 1%, compared to the year-ago period. This decrease primarily resulted from targeted price increases within XO’s wholesale long-distance services, which were implemented to improve margins on selected routes.

The company continues to closely monitor and react to the impact of macro-economic conditions on our industry and customers. “While we, like other wireline telecommunications services providers, continue to face short term challenges, we remain bullish on the long term potential for the company,” said Carl Grivner, chief executive officer of XO Communications.

Financial Results
($ in millions) Q2 2010 Q1 2010 Q2 2009
——– ——– ——–
Revenue $ 383.6 $ 369.5 $ 385.6
——– ——– ——–
Adjusted EBITDA (1) $ 40.5 $ 30.6 $ 37.1
——– ——– ——–
Adjusted EBITDA % (2) 11% 8% 10%
——– ——– ——–
Net Loss $ (1.2) $ (16.6) $ (6.0)
——– ——– ——–
Preferred Stock Accretion $ (17.7) $ (20.2) $ (19.9)
——– ——– ——–
Net Loss Allocable to Common Shareholders $ (18.9) $ (36.8) $ (25.9)
——– ——– ——–
Capital Expenditures $ 57.6 $ 64.2 $ 51.4
——– ——– ——–
(1) Adjusted EBITDA is a Non-GAAP financial measure. See the footnote
discussion accompanying the financial statements.
(2) Adjusted EBITDA % is adjusted EBITDA divided by revenue. See the
footnote discussion accompanying the financial statements.

Revenue
In the second quarter of 2010, XO’s Broadband offerings generated $220.0 million in revenue, an increase of $24.6 million, or 13%, from the year-ago period. This increase resulted from the continued growth in XO’s diverse broadband offerings, such as IP-VPN, IP Flex, Ethernet and Dedicated Internet Access services.
The revenue growth in XO’s Broadband services is partially offset by the year-over-year decrease in Integrated/Voice and Legacy TDM services. Revenue for Integrated/Voice Services during the second quarter of 2010 was $56.8 million, a decrease of $17.7 million, or 24%, compared to the year ago period. This category is inclusive of XO’s wholesale long distance offering, Carrier Long Distance Termination (CLDT), which declined $4.2 million compared to the year-ago period. This decline was the result of aforementioned targeted price increases implemented to improve margins on selected routes.

XO SIP Trunking Services Awarded by Frost & Sullivan

XO Communications (OTCBB: XOHO) has been recognized by Frost & Sullivan, a global market research and growth consulting firm, as the leading VoIP and SIP trunking services provider and capturing the largest market share among service providers by delivering superior customer satisfaction and value.

Frost & Sullivan has conferred on XO Communications the 2010 North American Competitive Strategy Leadership Award in the VoIP access and SIP trunking services market. In addition, Frost & Sullivan recently published a report naming XO Communications as the leading VoIP Access and SIP trunking provider in terms of enterprise VoIP end users.

XO Promotes Barbara Polk to Senior Vice President of Human Resources

XO Communications (OTCBB: XOHO) today announced the promotion of Barbara Polk to senior vice president of human resources, effective immediately. A seasoned professional, Polk brings more than 20 years of experience in human resources management and strategic consulting for both for-profit and non-profit organizations.

In her new role, Polk is responsible for leading the company

XO Launches Nationwide 40 Gbps Network Services

XO Communications (OTCBB: XOHO) today announced the availability of 40 gigabits per second (Gbps) network services in all major metropolitan markets the company serves across the United States. The new capabilities are designed to meet growing demand for ultra high-bandwidth and low latency network connectivity by enterprise and wholesale customers.


Today, large enterprises and service providers are increasingly looking for more cost-effective, higher speed network connectivity options to manage larger volumes of network traffic and achieve ultra-low latency for applications running across their networks. Companies such as large financial institutions and financial trading firms require network connectivity at the fastest speeds possible in order to receive market data, analyze the data and then place an order in a matter of milliseconds. For wireless service providers, they will continue to need higher-bandwidth connections in order to cost-effectively manage the significant growth of mobile network traffic resulting from 3G and new 4G wireless data applications.

The new XO 40 Gbps network offerings provide the broadest nationwide availability and bring all the operational and performance benefits customers need in order to manage more bandwidth more cost-effectively. The new capabilities include:

* 40 Gbps Wavelength services: Allow customers to use a single 40 Gbps link for ultra high-bandwidth network connections between two locations and provides operational benefits of managing one link instead of purchasing multiple 10 Gbps links.
* 40 Gbps IP Transit services: Allow customers to aggregate large volumes of Internet traffic over a single connection and not have to manage multiple dedicated Internet access circuits.