Hawaiian Telcom Communications Inc. continues to struggle, suffering its third straight quarterly loss this year.

The embattled, 125-year-old Honolulu company revealed yesterday that it lost $34.7 million for the three months ending Sept. 30, compared with $30.5 million in the second quarter and $29.5 million the same quarter a year ago.

Revenue was $112.3 million, 2.6 percent down from the prior quarter and 6.7 percent lower than a year ago.

Hawaiian Telcom blamed most of the losses on its restructuring process as well as the continuing decline in land-line customers.

“;We have begun a restructuring process in an effort to make Hawaiian Telcom a stronger and more financially secure company as we continue to manage in this extremely challenging operating environment,”; said Eric Yeaman, Hawaiian Telcom's president and CEO. “;Our dedication to providing our customers with the highest-quality service remains as strong as ever, and we do not anticipate any disruptions to our service during this restructuring process.”;

The company says its interest in launching new products such as video and its ability to keep up with customer service are hobbled until it is able to stabilize its overall systems.

Revenue in the third quarter was down across the board in all categories, from local to long-distance, network access and high-speed Internet services.

Long-distance services revenue was $8.5 million, down 11 percent versus the prior quarter, and 16.8 percent versus the same time a year ago.

Local services revenue was $48.2 million, down 1.9 percent from the prior quarter and down 7.7 percent from the same quarter of last year, due primarily to declines in switched access lines, or land lines.

Network access services revenue was $34.5 million, down 0.5 percent from the prior quarter and 1.3 percent from the previous year.

High-speed Internet revenue was $8.2 million, down about 6 percent compared with both the prior quarter and same quarter last year. Hawaiian Telcom said this was driven by reduced rates in response to competitive pressures.

Hawaiian Telcom lost a good chunk of its land-line customers—48,796, or 8.5 percent—during the year, bringing the September tally to 524,201. The number of high-speed Internet customers grew 2.4 percent over the year to 95,025.

Financially troubled Hawaiian Telcom also missed $26 million in bond interest payments that were to be paid earlier this month as part of a plan to conserve cash.

It was a first for the company, indicating the seriousness of its financial troubles and resulting in a downgraded outlook from Moody's Investor Services.

Since it was acquired in 2005 by the Carlyle Group of Washington, D.C., Hawaiian Telcom has lost more than $235 million.

Between September of this year and last year, the company lost 200 employees, leaving it with a head count of 1,432.

The company, however, reached a new three-year collective bargaining agreement with the International Brotherhood of Electrical Workers Local Union 1357 which was ratified on Oct. 4.

Efforts to revitalize the company include the promotion of bundled services such as the myChoice Plus Bundle.