WARWICK, NY -- (MARKET WIRE) -- March 19, 2007 -- Warwick Valley Telephone Company (
The Company expects a decline in Operating revenues of $2.1 million (or 8%) from $27.3 million in 2005 to $25.2 million in 2006. Revenues from traditional services including local network, network access, long distance network and directory advertising, are expected to decline in 2006. In addition, Internet service revenues are expected to decline as customers continued to migrate to similar Internet services offered by competitors. The Company expects Operating expenses to decrease $1.3 million (or 4%) from $30.3 million in 2005 to $29.0 million in 2006, primarily due to expected decreases in cost for professional services, lower trunkline costs for long distance and internet services, and lower salaries and benefits. Other income is expected to decline by approximately $1.0 million (or 10%) to $9.8 million due primarily to the lower earnings from Orange County-Poughkeepsie Limited Partnership. As a result, net income after taxes is expected to decline by approximately 22.7% to $4.0 million. The foregoing results are unaudited and are subject to adjustment in the course of completing the audit process.
Contact Information: Contact: Warwick Valley Telephone Co. Kenneth H. Volz Interim Vice President, Chief Financial Officer & Treasurer (845) 986-2107