Niche markets fuel their growth

Article Excerpt

ATLANTIC TELE-NETWORK $33.08 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340-777-8000; www.atni.com; Shares outstanding: 15.5 million; Market cap: $512.7 million; Dividend yield: 2.8%) sells telecommunications services to rural areas and other underserved regions of the U.S., Bermuda and Caribbean. Atlantic also owns an 80% stake in Guyana Telephone and Telegraph Company (GT&T), as well as wireless interests in the Caribbean and Bermuda. In April 2010, Atlantic bought over 800,000 wireless accounts from Verizon Wireless for $200 million. These subscribers were mostly in rural parts of Georgia, Illinois, Ohio, Idaho and the Carolinas. In the three months ended June 30, 2011, Atlantic’s revenue rose 17.6%, to $193.8 million from $164.7 million a year earlier. Earnings fell sharply, to $1.8 million, or $0.12 a share, from $24.8 million, or $1.64 a share. However, the year-earlier quarter included a one-time gain of $27 million on the purchase of the Verizon accounts. Shift of focus should benefit Atlantic Atlantic has had a hard time integrating the Verizon accounts. Its total…