Cogent Grew Steadily In Q2/2010

August 5th, 2010 by · Leave a Comment

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
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.

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: Financials · Internet Backbones · Metro fiber

Discuss this Post


Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.





  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar