posted a smaller second-quarter profit and boosted its capital spending forecast as it builds out its network.
The Reston, Va., provider of local and long-distance telephone service said that for its second quarter ended June 30, earnings fell to $8.6 million, or 30 cents a share, from the year-ago $10.7 million, or 37 cents a share.
Revenue rose to $114.9 million from $93.7 million a year earlier. Earnings and revenue in the latest quarter came in comfortably ahead of the Wall Street analyst consensus estimate, which called for earnings of 29 cents a share on revenue of $112 million.
The company, which focuses on selling multiple telecom services as a so-called bundle, said the latest quarter showed a 52% rise in billed bundled lines. Talk America reported net bundled adds of 49,000 in the quarter.
The company also affirmed its 2004 earnings guidance of around $1.21 a share, in line with the Wall Street estimate, but trimmed its revenue forecast a bit, owing to falling long-distance revenue expectations. Talk America forecast 2004 revenue of $450 million-$475 million; previously, the low end of the range had been $460 million.
Talk America boosted its 2004 capital spending budget to $20 million-$25 million from the previous $12 million-$15 million.
In after-hours action, the stock rose 36 cents to $6.94.