Cogent Communications (NASDAQ:CCOI, news, filings) has been pretty quiet lately, with the only press releases this year being the obligatory announcements of presentations at conferences or of course earnings reports. Hence I was curious to get a glimpse of where they are at with today’s Q2 earnings release. Here is a quick glance at the numbers in context of prior quarters:
|$ in millions||Q1/09||Q2/09||Q3/09||Q4/09||Q1/10||Q2/10|
|Earnings per share||-0.19||-0.10||-0.07||-0.03||-0.01||-0.02|
Revenues of $64.4M were slightly above expectations, as was a loss per share of two cents. That comes despite a $1.2M revenue hit from currency fluctuations for the company’s European business. Most of the sequential growth came from the sale of off-net services, which is a continuing trend that can be seen in the company’s declining gross margins.
However, the Q2 SG&A number was the lowest it has been in some time despite the higher revenues. Therefore, EBITDA of $18.9M and EBITDA margins of 29.3% were new high water marks. Loss per share of two cents was greater than the prior quarter, however it is this number that I believe Cogent is focusing on right now. They are aiming squarely at sustainable profitability, something that has eluded them for so long.
Cogent added another 28 on-net buildings, bringing their current total to 1503, which is a continuation of the company’s steady progress on this number. Traffic was flat with the prior quarter, which the company put down to seasonal fluctuations.
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