Operating ExpensesOperating expenses in the three months ended March 31, 2011, increased 0.7% to $20.1 million from $19.9 million in the three months ended March 31, 2010. Cost of services and products increased 3.9% to $11.0 in the quarter ended March 31, 2011, from $10.6 million in the quarter ended March 31, 2010. A non-recurring accrual for the Universal Service Fund costs, start-up network costs in New Hampshire, and increased employee and benefit costs accounted for the $0.4 million increase in this category. Selling, general and administrative expenses increased 3.0% to $3.3 million in the three months ended March 31, 2011, from $3.2 million in the three months ended March 31, 2010, primarily related to increased employee and benefit costs. Depreciation and amortization for first quarter 2011 decreased 5.9% to $5.7 million from $6.1 million in first quarter 2010. Amortization of intangible assets associated with the Country Road acquisition decreased $0.3 million, including contract and customer base intangible assets. The remaining decrease of $0.1 million reflected lower depreciation of plant assets in Alabama partially offset by an increase in depreciation in Missouri.
Otelco Reports First Quarter 2011 Results
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