Customers are certainly being more thoughtful in buying decisions, but we are not seeing any meaningful change in customer cancellations. That said, we believe the critical nature of our service offerings make them more durable as our customers grapple with what the current economic uncertainty means for their businesses. We are also not immune to the inflation impacting all industries, and we did see increased pressure in the second quarter. We are actively managing through supply chain constraints, which have caused some installation delays, but our strong relationships with our suppliers are proving invaluable in a challenging environment. As we look toward the second half of the year, we see the same macroeconomic pressures as everyone else. We saw strength in areas where we are investing to grow such as security, cloud, IP products, wavelengths and fiber broadband, offset by anticipated declines in TDM, voice and other. Although not yet where we want to be, we remain encouraged by our trends with our second quarter revenue performance improving both sequentially and year over year. But we have not changed our target of 1 million or so enablements by year end.īeyond accelerating fiber enablement, we're also excited to announce the launch of our multi-gig Quantum Fiber offering, which I'll discuss shortly. Permitting processes for our Quantum Fiber builds haven't improved as much as we would like, and we see supply chain challenges across our business. Our Quantum Fiber build is ramping with second quarter enablements more than doubling since the fourth quarter of last year, and we expect further acceleration in the second half of 2022 and into 2023. Our reinvigorated approach to product life cycle management will help customers transition to go-forward technologies and allow Lumen to maximize the contributions of more mature offerings, all helping to drive our No.ġ priority, profitable growth. Chris will provide more detail on our new business product group formation and what that will mean on a go-forward basis, but I can tell you that our teams are energized by a clear focus on managing products by life cycle. Combined, these transactions streamline our focus on the most strategic opportunities for Lumen, which we believe will drive significant long-term shareholder value. We are working hard toward an early fourth quarter close. We are also looking forward to the upcoming close of our ILEC transaction with Apollo. Our ongoing partnership will allow us to continue working with this extremely talented team. We are excited for the team at Cirion, but we'll certainly miss our LATAM friends and colleagues. I want to begin today's call by thanking our team for the hard work in closing the LATAM divestiture to Stonepeak. Before we begin, I need to call your attention to our safe harbor statement on Slide 2 of our second quarter 2022 presentation, which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties. Joining me on the call today are Jeff Storey, president and chief executive officer and Chris Stansbury, executive vice president and chief financial officer. Good afternoon, everyone, and thanks for joining us to the Lumen Technologies' second quarter 2022 earnings call. Mike McCormack - Senior Vice President of Investor Relations It is now my pleasure to turn the conference over to Mike McCormack, senior vice president, investor relations. As a reminder, this conference is being recorded Wednesday, August 3, 2022. Greetings, and welcome to Lumen Technologies second quarter 2022 earnings conference call.
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