Cogent Communications (CCOI)

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Cogent Communications Reports First Quarter 2011 Results
http://www.prnewswire.com/news-releases/cogent-communications-reports-first-quarter-2011-results-121309019.html

WASHINGTON, May 5, 2011 /PRNewswire/ --

Financial and Business Highlights

* Service revenue for Q1 2011 of $73.5 million – an increase of 5.8% from $69.5 million for Q4 2010 and an increase of 17.0% from $62.8 million for Q1 2010
o Foreign exchange positively impacts revenue growth from Q4 2010 to Q1 2011 by $0.2 million and positively impacts revenue growth from Q1 2010 to Q1 2011 by $0.1 million
* Traffic growth of 18% from Q4 2010 to Q1 2011 and traffic growth of 39% from Q1 2010 to Q1 2011
* EBITDA, as adjusted, of $24.2 million for Q1 2011 - an increase of 7.4% from $22.6 million for Q4 2010 and an increase of 38.5% from $17.5 million for Q1 2010
* EBITDA, as adjusted, margin was 33.0% for Q1 2011, 32.5% for Q4 2010 and 27.9% for Q1 2010
* 26,145 customer connections on the Cogent network at the end of Q1 2011 - an increase of 4.4% from 25,046 customer connections at the end of Q4 2010 and an increase of 17.6% from 22,237 customer connections at the end of Q1 2010
* 1,609 on-net buildings on the Cogent network at the end of Q1 2011 - an increase of 30 on-net buildings and 1.9% from 1,579 on-net buildings at the end of Q4 2010 and an increase of 134 on-net buildings and 9.1% from 1,475 on-net buildings at the end of Q1 2010
* Gross profit margin, as adjusted, was 56.9% for Q1 2011, 55.5% for Q4 2010 and 55.3% for Q1 2010
* Raised $170.5 million of net proceeds from the issuance of Senior Secured Notes


Cogent Communications Group, Inc. (NASDAQ: CCOI) today announced service revenue of $73.5 million for the three months ended March 31, 2011, an increase of 5.8% over $69.5 million for the three months ended December 30, 2010 and an increase of 17.0% over $62.8 million for the three months ended March 31, 2010.

(Logo: http://photos.prnewswire.com/prnh/20020204/DCM032LOGO )

On-net revenue was $56.8 million for the three months ended March 31, 2011, an increase of 5.9% over $53.6 million for the three months ended December 31, 2010 and an increase of 14.4% over $49.6 million for the three months ended March 31, 2010. On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities.

Off-net revenue was $16.0 million for the three months ended March 31, 2011, an increase of 5.6% over $15.1 million for the three months ended December 31, 2010 and an increase of 29.5% over $12.3 million for the three months ended March 31, 2010. Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network.

Non-core revenue was $0.7 million for the three months ended March 31, 2011, $0.8 million for the three months ended December 31, 2010 and $0.8 million for the three months ended March 31, 2010. Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.

Gross profit, excluding equity-based compensation expense, increased 8.6% to $41.8 million for the three months ended March 31, 2011 from $38.5 million for the three months ended December 31, 2010 and increased 20.5% from $34.7 million for the three months ended March 31, 2010. Gross profit margin, excluding equity-based compensation expense, was 56.9% for the three months ended March 31, 2011, 55.5% for the three months ended December 31, 2010, and 55.3% for the three months ended March 31, 2010.

Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased 7.4% to $24.2 million for the three months ended March 31, 2011 from $22.6 million for the three months ended December 31, 2010 and increased 38.5% from $17.5 million for the three months ended March 31, 2010. EBITDA, as adjusted, margin was 33.0% for the three months ended March 31, 2011, 32.5% for the three months ended December 31, 2010, and 27.9% for the three months ended March 31, 2010.

Basic and diluted net income (loss) per share was $(0.01) for the three months ended March 31, 2011, $0.06 for the three months ended December 31, 2010 and $(0.01) for the three months ended March 31, 2010.

Total customer connections increased 4.4% to 26,145 as of March 31, 2011 from 25,046 as of December 31, 2010 and increased 17.6% from 22,237 as of March 31, 2010. On-net customer connections increased 4.8% to 21,878 as of March 31, 2011 from 20,872 as of December 31, 2010 and increased 20.9% from 18,097 as of March 31, 2010. Off-net customer connections were 3,642 as of March 31, 2011, 3,526 as of December 31, 2010 and 3,310 as of March 31, 2010. Non-core customer connections were 625 as of March 31, 2011, 648 as of December 31, 2010 and 830 as of March 31, 2010.

The number of on-net buildings increased by 30 on-net buildings to 1,609 on-net buildings as of March 31, 2011 from 1,579 on-net buildings as of December 31, 2010, and increased by 134 on-net buildings from 1,475 on-net buildings as of March 31, 2010.

Conference Call and Website Information

Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on May 5, 2011 to discuss Cogent's operating results for the first quarter of 2011 and Cogent's expectations for full year 2011. Investors and other interested parties may access a live audio webcast of the earnings call under "Events" at the Investor Relations section of Cogent's website at www.cogentco.com/events. A replay of the webcast, together with the press release, will be available on the website following the earnings call.

About Cogent Communications

Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed Internet access and point-to-point transport services. Cogent's facilities-based, all-optical IP network backbone provides IP services in over 160 markets located in North America and Europe.

Cogent Communications is headquartered at 1015 31st Street, NW, Washington, D.C. 20007. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at [phone] or via email at [e-mail].

The link to this PR provides a detailed breakdown of financials.
http://www.prnewswire.com/news-releases/cogent-communications-reports-first-quarter-2011-results-121309019.html