XO Communications 2010 Annual Report Download - page 43

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2009
%of
Consolidated
Revenue 2008
%of
Consolidated
Revenue
Change
Dollars Percent
Revenue ............. $1,521,288 100.0% $1,477,610 100.0% $ 43,678 3.0%
Cost and expenses
Cost of service* ...... 879,979 57.8 871,445 58.9 8,534 1.0%
Selling, general and
administrative ...... 489,427 32.2 497,616 33.7 (8,189) (1.6)%
Depreciation and
amortization ....... 180,144 11.8 189,228 12.8 (9,084) (4.8)%
Impairment of LMDS
licenses .......... 8,282 0.5 — — 8,282 NM
Loss on disposal of
assets ............ 10,688 0.7 4,134 0.3 6,554 158.5%
Total cost and
expenses ........ 1,568,520 103.0 1,562,423 105.7 6,097 0.4%
Loss from operations..... (47,232) (3.1) (84,813) (5.7) 37,581 (44.3)%
Interest income......... 11,844 0.8 7,398 0.5 4,446 60.1%
Investment gain, net ..... 59,986 3.9 19,187 1.3 40,799 212.6%
Interest expense, net ..... (1,568) (0.1) (21,322) (1.5) 19,754 (92.6)%
Other income .......... — — 257 — (257) (100.0)%
Net income (loss) before
income taxes......... 23,030 1.5 (79,293) (5.4) 102,323 (129.0)%
Income tax (expense)
benefit ............. (1,195) (0.1) 4,012 0.3 (5,207) (129.8)%
Net income (loss) ....... 21,835 1.4 (75,281) (5.1) 97,116 (129.0)%
Preferred stock accretion . . (79,642) (5.2) (41,794) (2.8) (37,848) 90.6%
Net loss allocable to
common shareholders . $ (57,807) (3.8)% $ (117,075) (7.9)% $ 59,268 (50.6)%
* Exclusive of depreciation and amortization expense
NM — not meaningful
Revenue — 2010 Compared to 2009
Total revenue for 2010 increased 0.5% compared to the prior year. We experienced continued growth in
our Broadband Service offerings offset by continued declines in Integrated/Voice and Legacy/Traditional Dial
Modality (TDM) services. For 2011, we anticipate revenue growth comparable to that seen in 2010. Based on
continued investments which leverage next-generation IP-based technologies, we expect revenue from
Legacy/TDM services, as a percentage of our total revenue, will continue to decline during 2011 as our sales
continue to be focused on next-generation IP-based solutions. The projections for 2011 will be sensitive to
influences in a challenging macro-economic environment and regulatory climate changes.
Revenue was earned from services provided in the following categories for the years ended December 31
(dollars in thousands):
2010 %of
Revenue 2009 %of
Revenue
Change
Dollars Percent
Broadband ............ $ 895,825 58.6% $ 798,349 52.5% $ 97,476 12.2%
Integrated/Voice ........ 211,710 13.8% 271,818 17.9% (60,108) (22.1)%
Legacy/TDM services .... 421,706 27.6% 451,121 29.7% (29,415) (6.5)%
Total revenue .......... $1,529,241 100.0% $1,521,288 100.0% $ 7,953 0.5%
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