Revenue reached $3.8 million, up from $2.7 million in the 2000 third quarter. USOL has yet to make a profit, but CEO Jim Livingston said its expanding revenue stream and "relatively fixed cost structure" are moving it to closer to operating profitability.

The company reported its bottom line in three ways. First, its operating loss, before items such as interest, taxes and debt are accounted for, was $908,951, down from a loss of $1.9 million in the 2000 third quarter. Second, the company reported net income of $538,102, compared to net loss of $3.9 million. The profit resulted from several one-time adjustments totaling $3 million. Third, net loss attributable to common shareholders, which is net income minus preferred stock dividends, was $538,102, 5 cents a share, compared to a loss of $5 million, 64 cents a share, in 2000.

Back to revenue: The company said growth, compared to the 2000 third quarter, came from cable (up 36%), telephone service (up 39%) and Internet service (up 384%). USOL said its passings–an apartment unit capable of receiving a service–increased 63% for cable, 36% for telephone and 273% for Internet service.