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Table of Contents EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
19. Quarterly Financial Data (Unaudited)
The following table sets forth certain unaudited quarterly consolidated financial data for the eight quarters in the period ended
December 31,
2014
. In the opinion of the Company's management, this unaudited information has been prepared on the same basis as the audited consolidated
financial statements and includes all material adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly
the quarterly unaudited financial information. The operating results for any quarter are not necessarily indicative of results for any future period.
_______________________________________________________________________________
90
Three Months Ended
Mar. 31,
2013
June 30,
2013
Sept. 30,
2013
Dec. 31,
2013
Mar. 31,
2014
June 30,
2014
Sept. 30,
2014
Dec. 31,
2014
(unaudited)
(in thousands, except per share data)
Revenues
$
316,788
313,401
308,578
$
301,839
$
297,320
$
297,358
$
297,745
$
284,472
Cost of revenues
152,866
152,938
144,760
150,178
145,876
144,188
135,695
131,677
Income (loss) from
operations (1)
(252,872
)
3,935
(1,710
)
(14,302
)
(12,206
)
(7,388
)
7,689
(8,949
)
Gain (loss) from
discontinued operations,
net of tax (2)
(1,105
)
(292
)
(225
)
(339
)
55
6
—
(
442
)
Net loss (1)(3)
(236,415
)
(11,201
)
(11,338
)
(279,873
)
(26,470
)
(21,838
)
(1,952
)
(22,492
)
Net loss per share (4):
Basic
$
(2.30
)
(0.11
)
(0.11
)
$
(2.74
)
$
(0.26
)
$
(0.21
)
$
(0.02
)
$
(0.22
)
Diluted
$
(2.30
)
(0.11
)
(0.11
)
$
(2.74
)
$
(0.26
)
$
(0.21
)
$
(0.02
)
$
(0.22
)
(1) Loss from operations and net loss for the three months ended March 31, 2013 includes a $255.6 million non-cash impairment charge to
goodwill related to the Company's Business Services reporting unit. The impairment was based on an analysis of a number of factors
after a decline in the Company's market capitalization following the announcement of its fourth quarter 2012 earnings and 2013
financial guidance.
(2) The operating results of the Company's telecom systems business acquired as part of ITC^DeltaCom have been separately presented as
discontinued operations for all periods presented. On August 2, 2013, the Company sold its telecom systems business.
(3)
Net loss for the three months ended December 31, 2013 includes a non
-cash charge of $266.3 million
to establish a valuation allowance
related to the Company's deferred tax assets. These deferred tax assets related primarily to net operating loss carryforwards which the
Company determined it would not "more-likely-than-not" be able to utilize.
(4) The quarterly net income per share amounts will not necessarily add to the net income per share computed for the year because of the
method used in calculating per share data.