With sales boosted by acquisitions, Windstream, which provides telephone and broadband services in Lexington, announced an increase in second-quarter revenue last week.
The company, based in Little Rock, Ark., generated $1.54 billion in sales in the quarter, up 49 percent from $1.03 billion for the same period in 2011.
But a number of costs increased more quickly than sales, leading net income to fall to $54.2 million, or 9 cents a share, from $96.7 million, or 19 cents a share, a year ago. The results also included about $12 million in after-tax merger and integration expenses, as well as $6 million in restructuring costs.
The company continued its shift toward focusing on business revenues and broadband for consumers as it seeks to expand from its reliance on land-line telephone access.
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Last year, it acquired PAETEC, a business-focused company with several data centers.
"Our teams once again delivered solid results in the key areas of business sales and consumer broadband during the second quarter," CEO Jeff Gardner said in a statement.
Had Windstream owned its newest businesses at this time last year, overall quarterly revenue would have declined 1 percent year over year. Business service revenues, though, would have risen 2 percent to $893 million, while consumer broadband sales would have increased 4 percent to $114 million.
Looking to reduce expenses, the company announced during the second quarter that it plans to eliminate 375 to 400 management positions, or roughly 3 percent of its work force.
Spokesman David Avery said in a statement that it remains too early in the process to know the locations of the managers who will be eliminated.
The restructuring, which is expected to save $30 million to $40 million a year, should be finished in the third quarter.