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MindSpring earnings jump
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July 22, 1998: 8:27 p.m. ET
Internet service provider turns losses to profit, and Wall Street rewards stock
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NEW YORK (CNNfn) - MindSpring Enterprises reported record revenues and a sizeable jump in earnings for the latest quarter ended in June.
The Atlanta-based Internet service provider, rumored as a possible buyout target, posted second quarter profits Wednesday of $2 million, or 24 cents per diluted share -- up from losses of $1.4 million, or 19 cents per share, a year ago.
The First Call consensus estimate was for 18 cents a share.
Revenue for the quarter climbed to $25.1 million, compared to $11.6 million in the same quarter in 1997.
MindSpring posted its earnings after the markets closed, but that didn't deter Wall Street. Shares of the company (MSPG) surged 13-11/16, nearly 11 percent, to close at 140-5/16 in anticipation of strong results.
"One of our core values and beliefs is to 'do what we say we are going to do,' and with our second quarter financial results we have done just that," said MindSpring Chairman Charles M. Brewer. "We had another quarter of record revenues, strong subscriber growth, and profitable operations. Our financial results continue to point to the core of what kind of company we are."
MindSpring offers local Internet service in more than 375 cities nationwide and provides consumer access to more than 20,000 Internet newsgroups. The company also provides Web hosting services.
During the quarter, MindSpring's customer base grew to 393,000, compared to 183,000 in the year-ago quarter. 
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Mindspring
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