PITTSBURGH, Oct. 28, 2010 (GLOBE NEWSWIRE) -- Tollgrade Communications, Inc. (Nasdaq:TLGD), a leading supplier of network service assurance test products and solutions, today reported revenue of $11.1 million and net income of $2.5 million or $0.19 per share on a fully diluted basis for the third quarter ended September 30, 2010. The Company's net income for this quarter was more than double the second quarter 2010 net income of $1.2 million and was the highest quarterly net income since the second quarter of 2001. Although third quarter 2010 revenue was down slightly compared to the third quarter 2009 revenue of $11.3 million, due primarily to timing of customer orders, net income increased by approximately $9.6 million from the loss of approximately $(7.1) million posted in the third quarter of 2009. "The Company performed very well during the quarter, closing a key customer contract and posting positive net income for the second consecutive quarter. Although certain projects that we hoped would be included in our third quarter revenues have been delayed, we anticipate that they will close in the fourth quarter or early in 2011. Our primary focus still continues to be on our core customers to ensure they receive the highest levels of service. We are working hard to secure revenues from both new and existing customers. For example, in the third quarter, we finalized a new multi-year long term maintenance contract with a major European telecommunications provider. Lastly, during the quarter, we generated approximately $5.4 million in cash from operations," said Edward Kennedy, President and Chief Executive Officer. As of September 30, 2010, the Company's cash and short-term investments position was $69.6 million compared to $66.0 million at December 31, 2009. The increase of $3.6 million primarily reflects cash generated from operations. Fourth Quarter 2010 Revenue Outlook "We expect revenue to be in the range of $10 million to $13 million for the fourth quarter of 2010. Our revenue range for guidance reflects several revenue opportunities that were deferred from the third quarter, but which we believe may be recognized in the fourth quarter of 2010 or early in 2011," said Mr. Kennedy.