Ephrata D&E Communications Inc. Monday reported a steep loss in the second quarter as revenues were flat and the company took a heavy impairment charge.

D&E reported a net loss of $11.9 million, which adjusts to a $2.5 million profit when an impairment charge and other items are excluded. The company earned $2.3 million in the same period in 2007. The company reported a net loss of 82 cents per share in the second quarter, compared to a net gain of 16 cents per share during the same period last year.

D&E took a noncash impairment charge of $26.2 million — $15.3 million after tax — in the second quarter.

For the first six months of 2008, D&E reported a net loss of $6.8 million, or 47 cents per share, compared to net income of $4.9 million, or 34 cents per share, a year ago.

D&E reported total operating revenue of $37.5 million for the second quarter of 2008, compared to $37.2 million in the second quarter of 2007.

James W. Morozzi, D&E president and chief executive, also said Monday that the company plans to repurchase up to 500,000 shares, or approximately 3.5 percent, of its common stock.

"D&E is continually looking to enhance shareholder value," Morozzi said in a prepared statement.

D&E shares fell 1.3 percent Monday on the on the NASDAQ stock exchange, closing down 12 cents to $8.93 per share.