Spectrum, the US technology firm, has announced that it will shut down its broadband business, spectrum down, after its latest quarterly results showed a decrease in net income.
The news comes after a report by research firm Gartner showed that Spectrum had a net loss of $6.8m for the quarter ending March 30, up from a net profit of $5.9m in the previous quarter.
The company said it had incurred $5m of charges related to the sale of spectrum and the termination of its business.
Spectrum’s shares, which are up 15% over the last year, fell 2.7% on Friday.
Spectrum, which had revenue of $11.9bn in the quarter, also said it would lay off 1,000 staff.
The firm has a net worth of $1.5bn, according to Forbes.
Spectrum also operates the popular internet service SpectrumX, a competitor to Level 3, which is also owned by Google.
Earlier this year, it had to issue a “corporate governance plan” to the board of directors of its parent company, Spectrum, and the board agreed to take a more active role in the company’s management, following a $5bn (£3.6bn) writedown of the company.
In its statement, Spectrum said: “Spectrum has had a very challenging year and we believe that a successful quarter and subsequent turnaround will allow us to better deliver our vision of the future for the Spectrum network.
We are very proud of our accomplishments during the year, and we are excited about what lies ahead.
We will continue to grow the business and deliver value to our customers.””
Spectrum is working closely with the board and our team of advisers to identify a path forward that will give us the opportunity to deliver a positive outlook for the future and achieve financial profitability for all stakeholders,” it added.
The new chief executive, Richard Goss, is set to be announced on Wednesday.