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Earnings: EarthLink Q2 Revenues Dive, But Income Soars On Cost Cuts; Outlook Raised

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imageThis might be of interest to those involved in a deal for AOL’s (NYSE: TWX) access business… Old-school ISP EarthLink continued what it started last quarter, showing impressive earnings growth, even as revenue continued to fall. For the quarter, revenue dropped 21.2 percent to $245.6 million, but income swung from a loss of $7 million to a profit of $57.7 million. The key: sales and marketing expenses dropped to $25.8 million from $75.8 million. The company also shaved 43.8 percent off of its operations and customer service costs. Just as it did last quarter, it’s raising its full year guidance due to better-then-expected cost-cutting measures. The new full year outlook is for income from continuing ops of $180-$195 million, compared to previous expectations of $153-$163 million.

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