Lots of earnings reports today, more coming tomorrow. Here are quick snapshots of companies in three very different sectors of the telecom and internet infrastructure space: Cisco, CBeyond, and Limelight.
Cisco Systems (NASDAQ:CSCO, news, filings) made all the pundits happy by beating expectations handily. Revenues of $9.0B and adjusted earnings per share of $0.36 were very strong, as were the company’s comments about the improving economic conditions. The company also announced a $10B extension to their stock buyback program, despite using its cash stockpile to buy a company every week or two. A very muscular quarter by Cisco, apparently the equipment sector really has turned the corner.
cbey had a relatively quiet quarter. Revenues of $106.0M, EBITDA of $15.3M and a loss per share of $0.03 were perhaps slightly beneath expectations, but entirely within the reasonable range. The company continues to spend money on new market expansions, else their EBITDA would have been closer to $20M this quarter. The company reduced revenue guidance for the full year to $415M from $420M, and kept EBITDA and Capex guidance as is. In CLEC land, life is not horrible but the recession hasn’t really left the building yet.
Limelight Networks (NASDAQ:LLNW, news, filings) managed to follow Akamai’s lead and returned to growth in the third quarter after two consecutive quarterly revenue declines, but only just. Revenues of $32.5M were apparently bit lighter than the market was hoping for, as was fourth quarter guidance. EBITDA of $5.8M and an adjusted loss per share of $0.01 were not bad, but overall the main problem was simply that there was nothing to get excited about and the market will have to wait a bit. Limelight has had a good year on many fronts – legal wins, high profile customers, etc – but they haven’t yet seen a real benefit in their reported numbers.
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