CBeyond (CBEY) reported earnings today, reporting revenues of $85M, EBITDA of $13.7M, and earnings of $0.02. None of that came as much of a surprise, it was in line with guidance and expectations. Some, including Citibank, thought CBeyond might show the same symptoms as PAETEC, since both serve the enterprise and both build their networks out of leased circuits from other carriers.
The company did reduce full-year revenue guidance slightly from $355-360M down to $350-355M, but kept EBITDA guidance the same and churn didn't increase. They appear cautious about risks from economy, which is probably a smart move. All that is perhaps not a huge endorsement, but nothing close to the haircut PAETEC pre-announced the other day.
Macroeconomic weakness is clearly being felt at the SME level in the telecom space, but it doesn't seem severe so far. PAETEC's troubles may be local and could be related to their M&A and integration. The next test perhaps will be TWTC on Tuesday. In theory, TWTC should have some immunity due to their substantial fiber footprint and stickier revenue base.
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