Towerstream posts $4.8M net loss in 2Q

TOWERSTREAM CORP. President and CEO Jeffrey Thompson.
Posted 8/10/12

MIDDLETOWN – Towerstream Corp. posted a $4.8 million, or 9 cents per share, net loss during the three months ended June 30 compared with a net loss of $812,000, or 2 cents per share, during the same period in 2011.

The 4G and Wi-Fi/small cell network services provider saw a 23 percent rise in sales from $6.6 million during the second quarter of 2011 to $8.1 million in the second quarter of 2012.

In a release, the company attributed its increase in sales to a 16 percent growth in customer base to roughly 3,600 customers at the end of June.

Customer churn during the second quarter was 1.65 percent compared with 1.58 percent during the first quarter of 2012 and 1.56 percent in the second quarter of 2011.

According to Towerstream, this quarter’s figure marks the 11th consecutive month the company’s customer churn remained within or below the target range of 1.4 percent to 1.7 percent.

Customer upgrades were at record levels during the three months ended June 30, 2012, increasing in dollar value by 26 percent compared with the same period in 2011.

Towerstream constructed approximately 600 nodes for its small cell network during the second quarter, marking a quarterly high for the company.

“Node construction activity was robust during the second quarter, and we are on track to reach our target of 5,000 nodes by the first quarter of 2013,” Jeffrey Thompson, Towerstream’s president and CEO, said in a statement. “We expect to be well positioned when network integration is complete and data traffic begins moving onto our small cell network in 2013.”

As a result of that build-out and other goings on in the quarter, Towerstream recorded a 51.9 percent increase in operating expenses for the period to $12.8 million.

In its second quarter earnings report, Towerstream also announced plans to acquire Houston-based Delos Internet.

“Houston has been growing rapidly, and we believe there are excellent opportunities to increase the revenue base for our broadband services and utilize Delos’ network to support our small cell rooftop asset platform,” Towerstream Chief Financial Officer Joseph Hernon said in a release.

“This transaction will expand our national presence to 13 markets including nine of the 10 largest in the country,” added Hernon.

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