Currency headwinds and a final bit of fallout from the Megaupload incident slowed down growth at Cogent Communications (NASDAQ:CCOI, news, filings) in the first quarter, as the company priced its dividend payment at $0.10 per share. Here's a quick table summarizing their results in context:
|$ in millions||Q2/11||Q3/11||Q4/11||Q1/12||Q2/12|
|Earnings per share||0.05||0.01||0.12||-0.05||-0.04|
|Adj. EBITDA Margin||33.6%||34.5%||35.2%||29.3%||32.6%|
Revenues grew sequentially but were nevertheless lighter than anticipated, mainly due to the loss of another 0.9% of revenues from Megaupload that Cogent still had in Q1 that are now obviously gone. I hadn't realized there was still that speed bump left to cross. In parallel, the European currency effects slowed them down by $0.4M sequentially. Without either headwind, Cogent's revenues would have increased 2.9% sequentially.
Despite the revenue levels, EBITDA rose back to $25.3M -- higher than I expected and reflecting cost controls on the SG&A line. However, this has yet to help on the bottom line, as a loss per share of $0.04 was below composite analyst projections of break-even.
Cogent followed through with its intention to start returning cash to shareholders through a quarterly dividend, declaring it to be $0.10 per common share for shareholders of record on August 22, 2012. The company has just over 45M shares outstanding, so that will take about $4.5M out of company coffers - which are still overflowing at $237M of course.
Cogent added 30 buildings on-net, while headcount remained basically where it was at the end of Q1, rising to 613 from 612.
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