High Point, NC—AUGUST 17, 2017—North State, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the second quarter and six months ended June 30, 2017.
Summary of Selected Financial Data
Quarter Ended June 30, 2017 versus Quarter Ended June 30, 2016
- Consolidated net operating revenue (NOR) for the quarter totaled $28.4 million, up 2% compared to second quarter 2016.
- Total strategic revenue1 of $19.1 million, up 6%. Strategic revenue comprised 67% of NOR.
- Net income of $0.3 million compared to $2.4 million.
- Earnings per share of $0.09 compared to $1.05.
Six Months Ended June 30, 2017 versus Six Months Ended June 30, 2016
- Consolidated NOR of $57.5 million, up 2% compared to 2016.
- Total strategic revenue1 of $39 million, up 5%, and 68% of NOR.
- Net income of $2.5 million compared to $4.8 million.
- Earnings per share of $1.11 compared to $2.10.
Chief Executive Officer Royster Tucker III said, “Demand in both our Internet & Communications and IT Services & Hardware segments provided solid revenue performance in the second quarter. Although financial results for the period were impacted by $1.2 million in restructuring charges related to the formation of our new, integrated information technology services business unit in May, we are continuing to drive growth as we execute on our fiber and IT focused business strategy.”
Mr. Tucker continued, “To support this growth, we recently promoted Glenn Johnson to Executive Vice President and Chief Information Officer/Chief Information Security Officer. Glenn previously served as Chief Technology Officer and Chief Information Security Officer of Stalwart Systems, a company North State acquired in 2015 and integrated into our Technology Solutions business unit. Glenn’s new role underscores our focus on strategically using secure technology to deliver great experiences and outcomes for our customers. We welcome his experience and vision as we continue to build on our strong technology base.”
For further details on North State’s financial results for the second quarter of 2017, please see the financial tables included in the press release on the company’s website at: Q2 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 North State 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