Internet America up on results surprise Subscriber growth, buyouts drive loss cut, actually just a good earnings play that hit
By Cecily Fraser, CBS MarketWatch
Last Update: 4:52 PM ET May 6, 1999
Movers & Shakers Earnings Headlines
DALLAS (CBS.MW) -- Investors bid up shares of Internet America 5 percent Thursday after the internet service provider said strong subscriber growth helped it to beat Wall Street's third-quarter earnings expectations by 3 cents a share.
The Dallas-based company said its subscriber count was 79,000 as of March, representing a 34percent increase from last year.
The company (GEEK: news, msgs) reported a lossof $709,000, or 10 cents a share, compared to a loss of $326,000, or 8 cents last year.
Analysts surveyed by First Call Corp. were expecting the company to post a 13-cent loss.
Acquisitions and internal growth helped quarterly revenue for the quarter hit $4.8 million, up 24 percent from last year, Internet America said.
Additionally, the company said its acquisitions of
internet service providers CybeRamp and CompuNet resulted in 17,700 new subscribers
during the quarter.
"Our mission is to rapidly build market share, expand aggressively into new markets and take advantage of acquisition opportunities," Mike Maples, chief executive officer said.
"That is exactly what we accomplished, and we expect to deliver this kind
of performance in the future," he added.
Shares grew 1 3/8 to 28. |
