At long last, Abovenet filed its 2007 10-K yesterday and we finally get to see where they stand. Or at least where they stood 9 months ago, back in May we heard how 2006 went. Perhaps soon we will hear about how Q1 and Q2 2008 went? But the big news in Abovenet's 10-K is that they showed an actual profit for 2007 of some $13.8M, or $1.28/share. There were a couple one time items, but they seem to have mostly offset each other.
Not only that, they showed some solid growth. While revenue was up only 7.7% from $236.7M to $253.6M, the 2006 number included $24.5M from the datacenter business they sold that year. Adjusting for that, their core metro fiber and data business seems to have grown at an annual rate of over 19%. That's quite impressive actually, and it speaks to the strength of metro fiber as an asset nowadays. They finished the year with cash on hand of about $50M and no debt, but have apparently since raised a $90M credit facility.
So Abovenet continues to climb its way back from oblivion. Operationally they may already be back, if we can trust the numbers. Accounting-wise, however, they just can't seem to escape from limbo. From the filing:
The Company did not maintain, in all material respects, effective internal controls over financial reporting as of December 31, 2007.
Which leaves the open question: if you can't do it in 4 years, how many does it take?
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