MSP Today has been covering tw telecom so much, we’ve almost gotten used to the fact that the company makes lower case what should be a proper name. It puts the name in bold as well, though I think my copy desk would put its foot down on that one.
All that activity is paying off, as the company’s second quarter ended with a 6.9 percent increase in revenue to $389.5 million with net income roaring in at $17.3 million.
This is a nice bit of profit that came in despite some major investment in expansion.
In the past few months, tw telecom has picked up two new two partners to add size to its data center footprint, including CoreSite Realty Corporation, which is tapping into tw telecom’s Business Ethernet services. The company is also using Sentinel Data Centers to expand capacity.
“We substantially increased our sales talent, launched new products and features and offered more innovative choices for enterprises that will further differentiate tw telecom in the marketplace. We have a comprehensive, balanced approach to win market share with numerous initiatives to increase our sales momentum and the trajectory of our revenue growth,” noted CEO Larissa Herda.
Apparently having faith in its own future, the company bought back $278 million worth of shares.
Key to that future growth is new services. “During the quarter, we introduced several new products and features, demonstrating our commitment to bringing innovation and choice to customers,” said John Blount, chief operating officer. “We launched a powerful new automated feature for Dynamic Capacity that enables our elastic Ethernet network to automatically flex up bandwidth for the enterprise, based on the customers' pre-set parameters. Additionally, in June we demonstrated a prototype of our future Constellation Platforms, the first ever market capability that creates combined Ethernet network, data center and application connectivity in less than a minute. This powerful prototype sets us apart in the industry and clearly demonstrates our progress in bringing innovative real-time Ethernet network connectivity to customers, taking them all the way to their cloud applications.”
Indeed, the work with partners such as CoreSite is helping set the stage for this upcoming Constellation Platform. In fact, they plan on showing off the Constellation prototype soon in New York City.
Constellation is really about automation, allowing clients to provision new connections and shift data center loads more quickly and easily.
“Imagine having a dedicated, secure, predictable and scalable Ethernet network for your enterprise's cloud needs. Then imagine having that network available at the click of a button, building the service connection in real time, on-demand,” explained Blount during an earlier announcement. “No more writing service orders, waiting 45 or 120 days or longer for a dedicated network connection.”
Edited by
Alisen Downey
