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    Small-cap Nasdaq Leader; EarthLink jumps on Q2 Results

    Small-cap Nasdaq Leader; EarthLink jumps on Q2 Results

    Shares of EarthLink Inc. (NASDAQ: ELNK), an Atlanta-based provider of Internet Protocol (IP) infrastructure and services to medium-sized and large businesses, enterprise customers and residential customers in the U.S., are surging from momentum of the company’s second-quarter financial results. At last check, EarthLink shares were trading 5% higher at $7.88, with volume up from daily average of 1.38 million to 4.05 million.

    EarthLink reported second-quarter revenue of $363.6 million, representing an increase of 50% over the previous quarter. The sequential increase was mainly due to the acquisition of One Communications. On a year-over-year basis the company’s second-quarter revenue increased 138%.

    EarthLink reported second-quarter net income of $6.5 million, or $0.06 per share, compared with $16.4 million, or $0.15 per share, reported for the first quarter of 2011, and $28 million, or $0.26 per share, reported for the same period the year prior. The company’s second-quarter adjusted EBITDA was $88.9 million, compared with $69.7 million reported in the previous quarter and $56.7 million reported in the same period in the previous year.

    EarthLink also updated its guidance for full year 2011, now expecting adjusted EBITDA of $315 million-$320 million and net income of $24 million-$28 million in 2011. The company also noted increased momentum for the company’s IP network service business.

    Rolla P. Huff, chairman and CEO of EarthLink, said that over the past year, the company redefined itself in manner that provides long-term value creation potential for shareholders as the company’s EarthLink Business generated around three-quarters of total revenue and substantial amount of adjusted EBITDA.


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