Press Release
05-08-07 - D&E COMMUNICATIONS REPORTS FIRST QUARTER 2007 RESULTS
D&E COMMUNICATIONS, INC. FOR IMMEDIATE RELEASE May 08, 2007 | FOR IMMEDIATE RELEASE CONTACT PERSON: |
EPHRATA, PENNSYLVANIA (May 8, 2007) - D&E Communications, Inc. ("D&E" or "Company") (Nasdaq: DECC), a leading provider of integrated communications services in central and eastern Pennsylvania, today announced the results of its operations for the first quarter ended March 31, 2007.
For the first quarter of 2007 the Company reported total operating revenues of $38.4 million, compared to $40.3 million in the first quarter of 2006. The revenue decrease of $1.9 million was primarily the result of a decline in directory revenue of $2.5 million, due to the terms of a directory contract which became effective in the fourth quarter of 2006 and which covers three of the four directories that we publish. Directory expenses decreased $2.3 million as a result of this contract, under which the responsibility for publication and distribution of the directory and the related financial risks became the responsibility of the publisher. As a result, our directory revenue, as the new directories that are covered by this contract are published, will only be the annual fee paid to the Company for access to our customers.
Operating income for the first quarter of 2007 was $5.5 million compared to operating income of $4.9 million in the first quarter of 2006. Net income for the first quarter of 2007 was $2.6 million, or $0.18 per share, compared to a net income of $1.6 million, or $0.11 per share, for the same period last year. The primary reasons for the increase in net income were the operating income increase of $0.6 million and a first quarter 2007 gain of $0.6 million ($0.6 million, or $0.04 per share, after tax) from life insurance proceeds.
"We are very pleased with the start we have had in 2007", noted James W. Morozzi, D&E's President and CEO. "Our focus continues to be on increasing our On-Net CLEC subscribers and acquiring broadband customers through dedicated Internet access and Ethernet networking services such as Dynamic T, MPLS VPN, and Transparent LAN services. In the first quarter we experienced improved operating results in our Systems Integration segment compared to the same period of last year and will work to continue making improvements in this segment."
Customer Connections
| March 31, 2007 | March 31, 2006 | Change | % Change | |
| RLEC access lines | 128,538 | 133,387 | (4,849) | (3.6%) |
| CLEC access lines | 44,267 | 41,818 | 2,449 | 5.9% |
DSL/High-Speed Internet subscribers | 33,726 | 25,327 | 8,399 | 33.2% |
Dial-up Internet subscribers | 4,864 | 7,163 | (2,299) | (32.1%) |
Video subscribers | 7,606 | 6,760 | 846 | 12.5% |
Web-hosting customers | 975 | 959 | 16 | 1.7% |
| Total | 219,976 | 215,414 | 4,562 | 2.1% |
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