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Entries in IdeaOne (5)

Wednesday
Mar072012
DateWednesday, March 7, 2012 at 11:13AM

HickoryTech's 2011 Net Income Slips, Looks to Fiber in 2012

Source: HickoryTech Press Release

HickoryTech Corporation (Nasdaq:HTCO) announced that revenue for fiscal 2011 totaled $163.5 million, a 1 percent increase over fiscal 2010. A unique fiber construction project in 2010 added $5 million of revenue. Excluding the 2010 fiber construction project, revenue for fiscal 2011 grew 4 percent. Net income for fiscal 2011 totaled $9.2 million, a 24 percent decrease from fiscal 2010. The company said it had unique income tax reserve reversals of $406,000 in fiscal 2011 and $2.7 million in fiscal 2010, which added to net income in both years. Excluding the income tax reserve releases, net income in fiscal 2011 decreased 6 percent from fiscal 2010, largely due to SG&A and depreciation increases.

"We met and exceeded our objectives for fiscal 2011 and took additional steps to further expand our fiber network and to grow our company," said John Finke, HickoryTech's president and chief executive officer. "We signed an agreement to acquire IdeaOne in December and closed on this acquisition on March 1, 2012. While our fourth quarter results included expenses associated with this acquisition and normal sales fluctuation in our equipment segment, our fiber and data segment continued to grow while our telecom business remained stable. We remain committed to our strategic initiatives and will continue to manage the strong cash flows of our business to make investments which lay the foundation for future growth initiatives."

"We made significant progress in 2011 with our Greater Minnesota Broadband Collaborative Project which further expands our fiber footprint from the Twin Cities to northern Minnesota," said Finke. "The majority of this fiber route was completed in 2011 and we'll begin the northwestern Minnesota route in 2012, which will add more diversity to our Fargo, North Dakota network. The Fargo metro network is expected to bring accelerated growth opportunities for our customers in this market."

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Monday
Mar052012
DateMonday, March 5, 2012 at 5:12PM

HickoryTech Completes IdeaOne Telecom Acquisition

Source: HickoryTech Press Release

HickoryTech Corporation (Nasdaq:HTCO) announced it has completed its acquisition of IdeaOne Telecom Group, LLC, a fiber-based CLEC serving the greater Fargo, North Dakota area, in a transaction valued at $28 million.

IdeaOne provides data networking, Internet, colocation, phone and hosting services to approximately 3,600 business and residential customers in the Fargo area. The company has 40 employees.  The acquisition will add 225 fiber route miles to HickoryTech’s regional fiber network.  The acquired network facilities, which extend fiber to 650 buildings, include: multiple 10 GB fiber rings, ethernet capabilities, soft-switching infrastructure, and colocation services.

IdeaOne recorded fiscal 2010 revenue of $11.1 million and fiscal 2011 revenue of $12.3 million, an 11 percent increase over 2010.  The majority of IdeaOne revenue is derived from business services. 

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Monday
Feb132012
DateMonday, February 13, 2012 at 11:55AM

HickoryTech Gets FCC Approval for IdeaOne Buy

Source: FCC Daily Digest

The Wireline Competition Bureau has granted the application to transfer control of IdeaOne Telecom Group, LLC to HickoryTech Corporation (Nasdaq:HTCO). The Bureau has determined that grant of this application serves the public interest. 

HickoryTech agreed to acquire IdeaOne Telecom in December 2011 in an all-cash transaction valued at $28 million. IdeaOne provides data networking, Internet, colocation, phone and hosting services to approximately 3,600 business and residential customers in the Fargo area. The company has 40 employees. The acquisition will add 225 fiber route miles to HickoryTech’s regional network.

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Monday
Jan162012
DateMonday, January 16, 2012 at 4:19PM

HickoryTech Files for FCC Approval of IdeaOne Deal

Source: FCC 214 Applicaition

North Dakota Telecom I, Southeast Rural Vision Enterprises Co. and Hickory Tech Corporation filed an application with the FCC to transfer control of IdeaOne Telecom Group, LLC from transferors to Hickory Tech.

IdeaOne, a North Dakota limited liability company, is a non-dominant, competitive local exchange carrier that provides local exchange telephone services and interstate exchange access and long distance toll services in the Fargo and West Fargo, North Dakota, and Moorhead, Minnesota areas.  IdeaOne provides fiber optic-based voice and data services, high speed and dial up Internet access and wireless broadband services to approximately 3,600 business and residential customers.  IdeaOne is directly owned by NDT, a North Dakota limited liability company and SRVE, a North Dakota corporation.

The proposed transaction involves the purchase by HickoryTech of all of the membership/ownership interests in IdeaOne from NDT and SRVE, resulting in Hickory Tech becoming the direct parent of IdeaOne.  Applicants state that the proposed transaction will be transparent to IdeaOne’s customers, and that after completion of the transaction, the current customers of IdeaOne will continue to be served by IdeaOne pursuant to IdeaOne’s existing domestic Section 214 authorization. 

The FCC found that the transfer of control identified herein has been found, upon initial review, to be acceptable for filing as a streamlined application. 

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Tuesday
Dec062011
DateTuesday, December 6, 2011 at 9:36AM

HickoryTech to Acquire Fargo-based IdeaOne

Source: HickoryTech Press Release

HickoryTech Corporation announced that it has entered into a definitive agreement to acquire IdeaOne Telecom Group, LLC, a metro fiber network provider in Fargo, North Dakota, in an all-cash transaction valued at $28 million with routine adjustments for capital expenditures and working capital.

"This acquisition further advances our strategy of growing our business and broadband services," said John Finke, HickoryTech president and chief executive officer. "Last year, we extended our fiber network to Fargo. This transaction gives us immediate access to the market, making our entire portfolio of business services available to IdeaOne customers. The completion of our Broadband stimulus route from Brainerd, Minn. to Fargo, North Dakota in 2012 will further enhance our capabilities and services in this market."

IdeaOne provides data networking, Internet, colocation, phone and hosting services to approximately 3,600 business and residential customers in the Fargo area. The company has 40 employees. The acquisition will add 225 fiber route miles to HickoryTech's regional network. The fiber network facilities, which extend to 650 on-net fiber-lit buildings, include: multiple 10 GB fiber rings, ethernet capabilities, soft-switching infrastructure, and colocation services.

"We are confident HickoryTech and Enventis will provide quality support and expanded services to IdeaOne customers," said Bob Johnson, IdeaOne president and chief executive officer. "Our customers and the greater Fargo and Moorhead area will benefit from the redundant, regional fiber network and expanded capabilities as these two companies join together. Like IdeaOne, HickoryTech is committed to providing local service and quality support to their customers."

IdeaOne recorded fiscal 2010 revenue of $11.1 million, the majority of which was from the business customer base. This transaction adds approximately 1,900 business customers and 1,700 residential customers.

"We are very pleased to announce the combination of HickoryTech and IdeaOne," Finke said. "The employees of IdeaOne have built a solid company and provided their customers with exceptional customer service and quality products. We feel our two companies will blend together well and we are pleased to welcome them to the HickoryTech family."

The boards of both companies have approved the transaction, which is expected to close in the first quarter of 2012, subject to certain conditions, including necessary regulatory approvals from state and federal authorities.

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