Telecommunications group KeyTech Ltd.?s net income rose 21 percent to $6.3 million in the six months to September 30 as the company?s restructuring helped to cut its operating expenses.

Operating revenues at KeyTech Ltd., the parent company of Logic, M3 Wireless, BTC and part-owner of Cablevision and QuoVadis were $51.3 million compared to $50.5 million for the same period last year.

Revenue increased at M3 Wireless cellular services, Logic professional consulting services and Bermuda Yellow Pages, the company said in its six month interim results yesterday.

Operating expenses of $34.9 million included a $1.3 million reduction in BTC?s cash balances as a result of ?irregular? practices. (See story, Page 1).

Excluding the adjustment for the scheme, operating expenses were $957,397 lower than the prior six month period due mostly to the lower salary costs resulting from the restructuring accomplished during the prior year.

Earnings per share for the six month period 2005 were 52 cents compared to 43 cents for the same period last year.

Equity losses in affiliates for the six month period increased by $541,342 to $881,914 as compared to $340,572 the prior period due to capital investment expenditures by QuoVadis to upgrade and expand their Disaster Recovery and Certificate Authority Services, and additional funding required by WestTel to accelerate the rollout of residential coverage in the Cayman Islands.

KeyTech also lost $1.58 million in the six months ended September 30, 2005 on its discontinuance in hard and online Bahamas directory business, The Bahamas Data & Media Limited. Sales targets were not achieved, so the company discontinued funding. In the same period of 2004, discontinued operations of BD&M was $686,097.

During the period, BTC increased the number of Digital Subscriber Lines and achieved operational efficiencies through restructuring while mobile arm, M3 Wireless, upgraded its infrastructure with an improvement in signal coverage and expansion of its roaming reach, KeyTech said.

Logic said it continued to lead the marketplace with the September launch of its unlimited US/UK/Canada calling plan and has also generated ?significant revenue growth? in professional consulting services while Bermuda Yellow Pages had another successful directory campaign and page views on bermudayp.com have increased significantly, the company said.

KeyTech invested $6.7 million in capital assets during the six month period ended September 30, 2005 compared to $7.3 million in the 2004 period.

Investment income from marketable securities for the period ended September 30, 2005 was $299,590 compared to $354,124 for the same period last year. Other income of $1,735,275 in the current six month period represents a gain from the sale of Packet Exchange shares in April, 2005.