Wayne Mulligan_

Could Earthlink and United Online Still “Dial up” Big Profits?

Hey guys,

You're right, I misspoke, I was mainly directing that comment towards United but it certainly came out wrong (I think I was looking at ELNK's annual data as I wrote this blog entry). UNTD hasn't done much in reducing its SG&A, EarthLink clearly has over the last several quarters. My apologies for stating otherwise.

However, I still think that from a competitive perspective their moves have been fairly weak and haven't produced any meaningful results. It's clear both companies are trying to diversify their businesses...which one will successfully do so is the real question.

Do you think high-speed is enough to keep EarthLink in the black? Their bottom line has improved due to the cost reductions but their top-line has been getting weaker.

Thoughts?

-Wayne