The legacy telephone company, created from the former Verizon Hawaii, posted a $3.1 million fourth quarter profit on revenue $100 million.
Hawaiian Telcom emerged from Chapter 11 bankruptcy protection on Oct. 28 and adopted fresh-start reporting Oct. 31.
"2010 was an exciting year," said CEO Eric Yeaman. "We continued the build out of our broadband network enabling us to deliver higher broadband speeds and laying the foundation for Hawaiian Telcom TV."
Fourth quarter local services revenue was $37.5 million, down 9 percent from the same period a year ago, primarily due to year-over-year declines in access lines of 6 percent, as well as a reduction in average rate per unit of 3 percent.
But network access services revenue was $33.8 million, up 7 percent from the same period a year ago, driven principally by an 18 percent year-over- year increase in special access revenue, driven by demand for wireless backhaul services as increased wireless data usage from smartphones and tablet devices is requiring wireless carriers to add additional network capacity.
Yeaman said full year 2010 revenue was $401 million, down $8 million from 2009. More businesses and households cancelled their old landlines - a national trend - but Hawaii Telecom reported high-speed Internet subscribers grew 4 percent to 99,700 while 16,700 residential bundles were added in 2010, driving residential bundle penetration to 34 percent, up from 24 percent in 2009.
"We are still in the early stages of our transformation," Yeaman said, "but our efforts so far have resulted in a stabilization of the business, a transition to profitability and a positioning of the company for future growth."
Capital expenditures totaled $78.9 for the full year 2010, a decrease of 10 percent from $87.5 million in 2009, but still including significant investments to enhance broadband capabilities.
Revenue from long distance services was $8.4 million in the third quarter, down 7 percent from the same period a year ago, due to the 5 percent year-over-year decline in long distance lines, as well as a reduction in average rate per unit of 2 percent.