Tollgrade turns a profit in 2Q
Written on August 4, 2010
Tollgrade Communications Inc. turned a profit in the second quarter, reporting net income of $1.2 million, or 10 cents per share, compared with a loss of $1.5 million, or 12 cents per share, in the comparable year-ago period.
The Cheswick-based supplier of network testing and management products for the telecommunications and utilities sectors also saw a rise in sales. For the second quarter ended June 30, the company posted revenue of $11.5 million, up 8 percent from a year ago.
However, Tollgrade (NASDAQ: TLGD) hasn’t recovered from its first quarter, when it reported a loss of $1.7 million: For the first six months of the year, the company posted a loss of $436,000, or 3 cents per share, compared with a loss of $2.7 million, or 22 cents per share, in the first six months of 2009.
During the second quarter, the company also was impacted by a $600,000 charge related to the departure of its former CEO, Joseph Ferrara, who left the company to pursue other opportunities.
“We took action to realign our business beginning in the fourth quarter of 2009 and accelerated our efforts to significantly reduce operating costs during the first quarter of 2010,” said Edward Kennedy, president and CEO. “Our reduced operating cost structure had a major impact on our ability to report a profit during the second quarter of 2010, and we believe these actions have positioned the company to sustain profitability in the future and to be more competitive in the marketplace, helping us to drive top-line growth.”
For the third quarter, the company anticipates revenue in the range of $11 million to $13 million.
Filed in: management.