[company id=”ccoi”] 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 |
|---|---|---|---|---|---|---|
| Revenue | 55.1 | 58.0 | 60.2 | 62.5 | 62.8 | 64.4 |
| COS | 24.2 | 24.6 | 26.4 | 27.6 | 28.1 | 29.1 |
| SG&A | 17.1 | 17.0 | 16.8 | 17.6 | 17.4 | 16.4 |
| EBITDA | 13.9 | 16.7 | 17.0 | 17.4 | 17.5 | 18.9 |
| Earnings per share | -0.19 | -0.10 | -0.07 | -0.03 | -0.01 | -0.02 |
| Gross Margins | 56.1% | 57.6% | 57.8% | 55.9% | 55.3% | 54.8% |
| EBITDA Margins | 25.2% | 28.7% | 28.2% | 27.8% | 27.9% | 29.3% |
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.
Categories: Financials · Internet Backbones · Metro fiber
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