Cincinnati Bell 2009 Annual Report Download - page 78

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provider of an outbound notification services for a total acquisition price of $2.5 million. In December 2007,
Technology Solutions purchased GramTel, a data center services provider to small and medium-size companies
in Chicago and northwestern Indiana for $20.3 million.
The Technology Solutions segment produced total revenue of $293.1 million, $315.2 million, and $258.3
million and constituted approximately 22%, 22% and 19% of consolidated revenue in 2009, 2008, and 2007,
respectively. The Technology Solutions segment produced operating income of $22.1 million in 2009 and $18.1
million in both 2008 and 2007.
Customers
As the Company’s growth products and services, such as data center services and wireline data and
entertainment services, continue to increase in revenue, and the Company’s legacy products, such as wireline
voice service in its ILEC territory, continue to decrease in revenue, the Company’s revenue portfolio is becoming
more diversified than in the past, as the comparison between 2009 revenue and 2005 revenue demonstrates
below.
Percentage of revenue (before intercompany eliminations) 2009 2005 Change
Wireline local voice .................................. 26% 41% (15)pts
Wireless ........................................... 22% 20% 2
Technology Solutions ................................ 21% 14% 7
Wireline data ....................................... 20% 18% 2
Other Wireline, including long distance .................. 11% 7% 4
Total .............................................. 100% 100%
Additionally, the Company’s mix of business and consumer customers is changing, as many of the
Company’s growth products, such as data center services and data transport services, are geared primarily toward
business customers. In 2009, the Company’s revenues were comprised of 59% to business customers and 41% to
consumers. By comparison, the Company’s 2005 revenues were comprised of 53% to business customers and
47% to consumers. The Company has receivables with one large customer that exceed 10% of the Company’s
outstanding accounts receivable balance.
Competitive Conditions
Refer to Item 1A. Risk Factors for further information regarding Company risks associated with competitive
conditions.
Employees
At February 1, 2010, the Company had approximately 3,200 employees. CBT has approximately 1,100
employees covered under a collective bargaining agreement that expires in May 2011 with the Communications
Workers of America (“CWA”), which is affiliated with the AFL-CIO.
Executive Officers
Refer to Part III, Item 10. “Directors, Executive Officers, and Corporate Governance” of this Annual Report
on Form 10-K for information regarding executive officers of the registrant.
Business Segment Information
The amount of revenue, intersegment revenue, operating income, expenditures for long-lived assets, and
depreciation and amortization attributable to each of the Company’s business segments for the years ended
December 31, 2009, 2008, and 2007, and assets as of December 31, 2009 and 2008, is set forth in Note 14 to the
Consolidated Financial Statements.
8