XETA Technologies today announced third quarter earnings of $377,000 or $0.04 per share diluted on revenues of $18.2 million for the period ended July 31, 2007. This compares to earnings of $286,000 or $0.03 per share diluted on revenues of $15.7 million for the quarter ended July 31, 2006.
For the nine months ended July 31, 2007, the company reported earnings of $755,000 or $0.07 per share diluted on revenues of $50.9 million compared to net income of $202,000 or $0.02 per share diluted on revenues of $43.2 million for the same period ended July 31, 2006.
“Our third quarter results reflect continued successful execution on our strategies to focus on our three major lines of business – Nortel, Avaya, and Managed Services,” stated Greg Forrest, XETA President and CEO. “Our revenues of $18.2 million were the highest in 24 quarters. This success, plus year-to-date revenues of $50.9 million, exceeds our goal to increase top-line revenues by at least 15% per year. We are particularly pleased with the 22% increase in our Managed Services business, our sixth straight quarter of sequential growth. This increase included a 49% increase in the commercial sector of that business. All three of our primary commercial services revenue streams enjoyed strong growth during the quarter. Most importantly, our wholesale service offering added significant new recurring revenues, driving a 60% increase in total commercial recurring revenues for the third quarter compared to last year.”
“Growth in our systems sales was 11% for the third quarter and year-to-date period compared to the same periods last year. We believe this success reflects our focus on aligning our sales efforts with our major manufacturers as well as the acquisition of new accounts and deeper penetration of existing accounts, particularly in the Nortel line of business