PORTLAND, Ore.—Metro One Telecommunications Inc. suffered a quarterly net loss of $5.7 million as it tried to re-group following Sprint Nextel Corp.’s decision to drop the enhanced directory-assistance provider from its iDEN-based services.
Metro One reported first-quarter revenue of $15.2 million, down from $18.4 million during the same period last year. The figure includes a $5.75 million settlement from Nextel Operations Inc., which severed ties with the company following Sprint Corp.’s acquisition of Nextel Communications Inc. last year.
Nextel had been Metro One’s largest customer, accounting for 72 percent of its revenues during the first half of 2005 and 56 percent of revenues in 2004. Metro One said the quarterly loss, which narrowed substantially from the $13.3 million loss reported during the year-earlier period—included $5 million in restructuring charges.
“Our entire team is refocused on rebuilding a strong business,” said Chief Executive Officer Jim Usdan. “By leveraging our unique combination of proprietary technology, call center management experience and data offerings, we believe that we are in a good position to capitalize on many opportunities.”
Investors were not surprised by the report, as shares of Metro One fell just one cent to 50 cents per share following the announcement.
