EarthLink Network Inc, the Pasadena, California-based internet service provider, has reported a second-quarter loss of $24.5m on revenue up 105% at $78m, compared to a loss of $12m in the year- ago quarter. Excluding amortization and other charges totaling $17.7m, the loss for the quarter was $0.21, a penny better than the First Call consensus estimate. Results for the year-ago quarter include similar charges of $7.2m.
EarthLink says it added 180,000 net new members during the quarter, a 125% increase over the year ago period, and a 16% rise sequentially. Monthly average churn rate, meanwhile, was a healthy 3.5%. Incremental revenue increased 15% sequentially to $2.3m for the quarter, while backlog rose slightly to $8m. Consolidated gross margin for the period was 57% of revenues.
For the six-month period, net loss was $46.8m on revenue up 116% at $146.2m, compared to a loss of $18.4m last year. Results include one-time charges of $35.3m and $7.2m for the current year and last year, respectively. á
