These excerpts taken from the Q 10-Q filed Apr 30, 2009.
Margin percentage expanded from 38% in the three months ended March 31, 2008 to 39% for the three months ended March 31, 2009 as we continued to execute on operating initiatives that improved our overall cost efficiency. As a result of our continued focus on higher margin products and managing costs, we were able to grow income by 6% and expand our margin percentage by 100 basis points.
Expense reductions due to a reduced workforce, network cost efficiencies and our transition to selling Verizon Wireless products and services improved our margin percentage by 600 basis points to 55% when compared to the same period in 2008.
Driven by profitability structure improvements relating to our long-distance services, our margin percentage increased 600 basis points and we held our income to a 2% reduction. We continue to experience income pressure as a result of decreased access and local voice services and the continued shift to data and Internet products and services. Price compression on data and Internet services continues to impact our income and the industry in general; however, as we execute on our operating initiatives (thereby improving our overall cost efficiency), we expect income to stabilize.