High Point, NC—MAY 18, 2017—North State, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the first quarter ended March 31, 2017.
Summary of Selected Financial Data
Quarter Ended March 31, 2017 versus Quarter Ended March 31, 2016
- Consolidated net operating revenue (NOR) for the quarter totaled $29.1 million, up 1% compared to first quarter 2016.
- Total strategic revenue1 of $19.8 million, up 5%. Strategic revenue now comprises 68% of NOR.
- Operating income remained constant at $2.5 million.
- Net income of $2.3 million compared to $2.4 million.
- Earnings per share of $1.01 compared to $1.04.
Chief Executive Officer Royster Tucker III said, “We continued to generate revenue growth for the period, benefiting from solid increases in our Internet and communications segment due to increased penetration and revenue from our fiber-connected customers. In spite of a soft quarter in IT hardware sales, strategic revenues continue to offset declines in our legacy business.
“Earlier this week we announced the formation of a new, integrated information technology services business unit called “Technology Solutions” that will run under the North State brand. This represents a further step in positioning North State to uniquely meet the rapidly changing needs of businesses. The unit, arising from the integration of our subsidiaries DataChambers and Stalwart Systems, enhances our ability to address the complex IT challenges businesses face as they migrate to the cloud.”
On May 11, 2017 North State’s board of directors declared a cash dividend of $1.30 per share on the company’s common stock, payable on June 5, 2017 to stockholders of record on May 22, 2017.
For further details on North State’s financial results for the first quarter of 2017, please see the financial tables included in the press release on the company’s website at: Q1 2017 Earnings Report.
1 Total strategic revenue is strategic Internet and communications revenue and all IT services and hardware revenue, for both business and consumer segments.
Forward Looking Statements
The inclusion of forward-looking information should not be construed as a representation by us that our plans or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About North State
North State (OTC: NORSA) (OTC: NORSB) is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet. Through its Technology Solutions business unit, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit northstate.net.
Harriet Fried, SVP