RCN Corp. (RCNI:NASDAQ)

RCN Corp. announced that RCN Business Services is expanding its data product suite by introducing wideband cable modem offerings through the rollout of Data Over Cable Service Interface Specification 3.0 technology to the SMB market. The company plans to launch in Manhattan and in portions of Boston, due to the company's large fiber footprint in that area, as well as areas served by RCN in Eastern Pennsylvania. RCN will leverage the Cisco DOCSIS 3.0 downstream channel bonding solution that includes the Cisco uBR10012 cable modem termination systems (CMTS) and Cisco DPC3000 channel bonded cable modems. The new services will offer peak data rates of 20M bps downstream/5M bps upstream, 40M bps downstream/5M bps upstream and 60M bps downstream/10M bps upstream. With one-to two-year commitments, pricing ranges from $59.99 to $199.99. RCN noted while other existing speed tiers are available to meet the specific needs of smaller businesses, all of the new DOCSIS tiers will be available to customers seeking a wideband option.

RCN Corp. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported revenue increased to $192 million compared to $187 million in the third quarter of 2008 and $192 million in the second quarter of 2009. Net loss was $6 million compared to $15 million in the third quarter of 2008 and $9 million in the second quarter of 2009. Operating income was $4.7 million against operating loss of $2.6 million for the same period a year earlier. EBITDA of $56.4 million increased 12% from $50 million in the third quarter of 2008 and increased 2% from $55.5 million in the second quarter of 2009. Capital expenditures were $34 million compared to $34 million in the third quarter of 2008 and $25 million in the second quarter of 2009. Free cash flow was $11 million compared to negative $2 million in the third quarter of 2008 and $10 million in the second quarter of 2009 For the nine months, the company has reported net loss from continuing operations of $24.7 million and net cash provided by operating activities of $115.3 million against net loss from continuing operations of $57.6 million and net cash provided by operating activities of $101.9 million reported in the same period last year. In the period, the company has incurred $87.5 million on additions to property, plant and equipment against $111.9 million incurred a year ago.

RCN Corp. announced that Casimir S. Skrzypczak, 68, and Kurt M. Cellar, 39 have been appointed as independent members of its board of directors, increasing the size of the board to eight seats. Mr. Skrzypczak is the former senior vice president of Customer Advocacy for Cisco Systems. Since January 2008, Mr. Cellar he has been a consultant to companies in the telecommunications, retail and insurance industries. He has extensive experience in telecommunications as both an investor and board member.