Telephone and Data Systems (TDS) announced third-quarter 2009 earnings per share of 33 cents, which fell behind the Zacks Consensus Estimate of 47 cents and the year-ago quarter EPS of 87 cents. Net income (attributable to TDS) tumbled 65% year over year to $35.6 million as profit dipped at the company's wireless subsidiary U.S. Cellular (USM).

The Chicago-based company reported operating revenue of $1,258.7 million, reflecting a 4% year over year drop as a result of declines across its wireless and wireline businesses.

U.S. Cellular (Wireless)

Net income sank 60% year over year to $35.6 million, due to lower revenue and increased operating expenses. Operating revenue declined 3% over the prior-year quarter to $1,058 million as a result of a 3% year over year decline in service revenues that registered $984.9 million in the quarter. The unit continues to experience lower roaming revenue, offset by healthy data revenue growth (up

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South Korea’s largest fixed-line carrier, KT Corp. (KTC), announced third quarter results with reported net income increasing 80% year over year to KRW351.4 billion (US$285 million) or KRW1,497 per share (70 cents per ADS). The annualized growth was driven by gains from wireless and a stronger Korean won versus the US dollar, which helped reduce the cost for foreign currency debt.   Revenues for the quarter increased 3.9% year over year to KRW4.82 triillion (US$1.97 billion), driven by growth in wireless data and subscriber base. However, operating profit declined 11.7% year over year to KRW413.1 billion (US$335 million) due to increase in depreciation and amortisation costs and higher marketing expenses resulting from intense competiion.   KT is battling with its Korean peers SK Telecom (SKM) and LG Dacom to win new customers in a highly matured domestic wireless market, represented by approximately 96% mobile penetration.   ...

Cincinnati Bell (CBB) announced third quarter results with adjusted earnings per share of 11 cents, falling short of the Zacks Consensus Estimate by a penny. However, this was above the year-ago EPS of 10 cents.   Adjusted EPS excludes special items such as restructuring charges, loss on disposal of assets and gain on extinguishment of debt. Net income increased 4% year over year to $28 million while revenue fell 3% from the prior-year quarter to $338 million as a result of the declines across wireline and wireless segments.   Wireline Segment   The company reported wireline revenues of $191 million down 5% from the year-ago quarter. Lower voice revenues (down 14% year over year to $83 million) and long-distance revenues (down 3% to $24 million) were partially offset by an increase in revenues from data services (up 2% to $70 million).   At the end of the quarter, ...

Sprint Nextel (S) reported third-quarter 2009 results with net loss per share of 17 cents, exceeding the Zacks Consensus Estimate of 15 cents and the year-ago loss per share of 11 cents. The third-largest US wireless carrier posted a net loss of $478 million, 47% more than the net loss of $326 million reported a year ago. Sprint remains significantly challenged by the volatile economic backdrop, which has contributed to the sustained decline in the wireless subscriber base and associated revenues. Operating revenue fell 9% year over year to $8 billion due to lower contributions from its wireline and post-paid wireless businesses. The company reported adjusted OIBDA of $1.5 billion for the quarter, down 17% year over year, due to decreased operating revenue partly offset by lower SG&A expenses. Wireless Consolidated revenue from the wireless segment was $6.9 billion, down 8% year over year, ...

Skyworks Solutions Inc. (SWKS) yesterday raised its guidance for the fourth quarter of fiscal 2009, driven by broad-based improvements in order demand. Massachusetts-based Skyworks designs, manufactures and markets a broad range of high-performance analog and mixed signal semiconductors that enable wireless connectivity. The company now expects revenues to come between $220 million and $225 million, up from the previous estimate of $210.3 million. Management has stated that multiple new program ramp-ups coupled with strong operational execution are contributing to the better-than-expected top-line and bottom-line growth. EPS (excluding one time charges/gains) is forecasted around 21 – 22 cents, up from the earlier projection of 19 cents. The gradual and better-than-expected recovery in the semiconductor space has propelled most players to raise their quarterly projections driven by improving demand. Earlier in the day, top player Texas Instruments (TXN) upgraded its forecast for the third ...

Texas Instruments (TXN) narrowed its third quarter revenue expectations to $2.73-$2.87 billion (a sequential increase of 9.7%-16.7%). Previous guidance was for revenue of $2.50-$2.80 billion (a sequential increase of 1.6%-13.8%). This effectively raises the mid-point of guidance by 5.7%. The company also expects earnings per share (EPS) to come in at 37 to 41 cents, compared to the previously guided range of 29 to 39 cents. Management stated on the call that the higher expectations were based on increased demand across all segments and particularly, the analog business. The main drivers within the high-performance category are HDD, PND and video games products. Power management products will benefit from the ongoing strength in notebooks, cell phones and other consumer products. The Embedded Processing segment is expected to benefit from particular strength in microcontrollers (catalogue products), as well as automotive products. The industrial business in China ...

China Telecom (CHA) announced interim 2009 results today with net income of RMB8.4 billion ($1.2 billion), or RMB0.10 per share, down 27.5% compared to RMB11.6 billion ($1.7 billion), or RMB0.14 per share, reported in the corresponding period a year ago.

This annualized drop in profit is primarily attributable to higher marketing expenses associated with the deployment of the company’s 3G wireless services and persistent decline in legacy landline business. China Telecom reported a 24% year-over-year rise in operating expenses for the period, largely due to an annualized increase of 60% in SG&A costs (including mobile handset subsidies).

The largest Chinese fixed-line operator reported revenue of RMB102.6 billion ($15 billion) for the period, up 14.8% year over year, driven by healthy contribution from its wireless segment which offset the fall in fixed-line business. EBITDA shrank 2.1% year over year to RMB43.3 billion ($6.3 billion) with EBITDA margin equating to

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Last week, Tele Norte Leste Participações S.A. (TNE) posted disappointing results for the second quarter of 2009.

Its net debt increased 12.7% sequentially and about 278% year over year to R$21,638 million (US$10,353 million). This was due to higher capex expenses, including a third-generation service license for its 3G mobile set up in São Paulo and the takeover of Brasil Telecom Participações (BRP). During the quarter, the company acquired a 55% stake in Brasil Telecom for R$12.4 billion.

At the end of second quarter, net debt represented 2.2 times Tele Norte’s consolidated EBITDA in the last 12 months. We understand that rising debt will increase financial expenses in the short term and will have an impact on the company’s future earnings.

The company reported a quarterly net loss of R$146 million (US$69.9 million) compared with a net income of R$288.5 in the year-ago period. Its loss per

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Telephone and Data Systems (TDS) reported second-quarter results yesterday with earnings per share of 63 cents, down 20% year over year, while beating the Zacks Consensus Estimate of 58 cents. Net income came in at $69.7 million compared to $87.8 million reported a year ago.

The Chicago-based company reported operating revenue of $1.2 billion, reflecting a 3% year-over-year increase, with most of the contribution coming from its wireless subsidiary U.S. Cellular (USM). Quarterly operating income was $154.6 million, up 3% year over year compared to an operating income of $149.7 million reported in the prior-year period.

U.S. Cellular (Wireless):

Reported net income of $83.4 million represents a 15% year over year increase due to lower operating expenses, while operating revenue declined 1.7% over the prior-year quarter to $1 billion. The segment reported a 1.3% year-over-year decline in service revenues to $974.8 million in the quarter.

Data revenue

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Sprint Nextel (S) reported its second quarter earnings today, with a net loss exceeding consensus and our forecasts while reported revenue came in line with the average estimate. The company posted a second quarter net loss of $384 million or $0.13 per share, which is 12% higher than the net loss of $344 million or $0.12 per share reported a year ago. Operating revenue fell 10% year over year and 1% sequentially to $8.1 billion due to lower contribution from its wireless business. The total reported revenue from the wireless segment was approximately $7 billion, reflecting a year-over-year decline of 9%. Wireless service revenue registered $6.4 billion, down 9% year over year while flat sequentially, as revenue growth from Boost Monthly prepaid subscribers was offset by declines in the post-paid segment. Sprint lost a net of 257,000 subscribers in the second quarter compared to 182,000 ...