Lightyear Network Solutions Inc., a provider of an array of telecommunications services to business and residential customers throughout North America, today posted its financial results for the first quarter 2011 ended March 31, 2011. The first-quarter results include Lightyear’s acquisition of SouthEast Telephone, which was completed on October 1, 2010.

Revenue was reported at $18.6 million for the first quarter 2011, up 65.3 percent from $11.3 million in the year-ago quarter.

Gross profit increased 80.7 percent to $6.6 million. Gross profit margins increased 300 basis points for the quarter to 35.4 percent from 32.4 percent in the year-ago quarter.

The company reported a net loss of $711,000, or $(0.03) per common share, compared to a net loss of $1.3 million, or $(0.09) per common share, in the year-ago first quarter of 2010.

Stephen M. Lochmueller, CEO of Lightyear said its quarterly performance was positively affected by its acquisition of SouthEast Telephone.

“It provided us with additional network infrastructure that is enabling us to lower costs on our existing business. We have already implemented a number of steps that will provide us the ability to lower our operating costs. We expect to continue to see improvements in our operating efficiencies as we realize the full benefits of our integration with SouthEast Telephone,” Lochmueller stated in the press release.

The first quarter of 2011 represents the company’s first quarter of year-over-year earnings growth. Lochmueller said he expects the company to continue its performance throughout the upcoming year.

“While the first quarter has historically been our weakest quarter, we produced several positive results. Since becoming a public company, this was our first year- over- year quarterly revenue growth in the core company, demonstrating that our sales and product approaches are correctly tuned for the market. This improved revenue base provides us a good foundation for the remainder of the year. Our first quarter was affected by several charges totaling approximately $477,000 that were taken in the first quarter, and which we do not expect to recur,” he stated.

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