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Table of Contents
FORWARD-LOOKING STATEMENTS
Certain statements in this Annual Report on Form 10-K are forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words "estimate,"
"plan," "intend," "expect," "anticipate," "believe" and similar expressions are intended to identify forward-looking statements. These forward-
looking statements are found at various places throughout this report. EarthLink Holdings Corp. disclaims any intention or obligation to update
or revise any forward-
looking statements, whether as a result of new information, future events or otherwise. Although EarthLink Holdings
Corp. believes that its expectations are based on reasonable assumptions, it can give no assurance that its targets and goals will be achieved.
Important factors that could cause actual results to differ from estimates or projections contained in the forward-
looking statements are described
under "Risk Factors" in Item 1A of Part I and under "Safe Harbor Statement" in Item 7 of Part II.
PART I
Item 1. Business.
Overview
EarthLink Holdings Corp. (“EarthLink” or the “Company”),
together with our consolidated subsidiaries, is a leading managed network, security
and cloud services provider to business and residential customers in the United States. We operate two reportable segments, Business Services
and Consumer Services. Our Business Services segment provides a broad range of data, voice and managed services to retail and wholesale
business customers. Our Consumer Services segment provides nationwide Internet access and related value-
added services to residential
customers. We operate an extensive network including more than 29,000 route miles of fiber, 90 metro fiber rings and secure enterprise-
class
data centers that provide data and voice IP service coverage across more than 90 percent of the United States.
Our corporate offices are located at 1170 Peachtree Street NE, Suite 900, Atlanta, Georgia 30309, and our telephone number at that location is
(404) 815-0770. Our website address is www.earthlink.net.
History
We were incorporated in 2013 as a Delaware corporation through the creation of a new holding company structure. We began in 1994 as a
provider of nationwide Internet access and related value-
added services to residential customers. In 1996, we first expanded into the small to
mid-sized business market by introducing business-
class Internet access and web hosting services to businesses nationwide. In 2006, we
expanded into the enterprise business market by acquiring a provider of managed IP-
based network solutions to businesses nationwide. As the
market for consumer Internet access began to mature, we began to manage this business for cash and seek growth opportunities. During 2010
through 2013, we acquired eight companies which transformed our business from being primarily an Internet services provider to residential
customers into a network, communications and IT services provider for business customers. During that time we were focused on integrating our
acquired businesses and managing a broad portfolio of products and services. During 2014, we established a more focused strategy for our
company and began our transformation into a leading managed network, security and cloud services provider.
Business Strategy
Our business strategy is to be a leading managed network, security and cloud services provider for multi-
location retail and service businesses.
We believe there is a market opportunity for managed services due to the changing technological and business landscape, which is experiencing
increased demand for data and driving towards more software based solutions. Evolving security threats, changing regulatory standards,
increased use of outsourcing and tightening budgets are also contributing to businesses' needs for managed services. We are positioning our
company to focus on this opportunity. The key elements of our business strategy and transformation are as follows:
1
•
Align our organization and operating model around four customer categories.
We are in the process of aligning our organization
around four distinct customer categories, which are consumer, small business, mid-
market/enterprise and wholesale. We believe this
will target our resources and investments into areas that will drive growth and deliver improved performance, enable each business to
compete more successfully in the market and provide strategic optionality. We are currently making various organization changes and
implementing value-optimizing strategies for each customer category.