Cogent Shrinks Loss, Cuts Projections
From the Associated Press
Internet service provider Cogent Communications Group said its loss narrowed in the second quarter, to $5.6 million (12 cents a share) forom $9.2 million (19 cents), as revenue grew 19 percent from a year ago. The District-based company said revenue grew 19 percent, to $53.9 million
Total customer connections were 16,181 as of June 30, up from 13,786 a year ago.
Cogent Communications Group also sharply reduced its projections for the year, sending shares lower. The company said it now expects a 2008 loss of 50 cents to 60 cents per share, instead of its previous estimate of a loss of 20 cent to 30 cents per share.
The new estimate includes $18 million to $19 million, or 39 cents to 41 cents per share, in stock-based compensation. The company also said it would generate revenue of "more than" $218 million, rather than a previous estimate of $225 million to $235 million. Analysts polled by Thomson Financial had been expecting revenue of $225 million.
The company provided no reason for adjusting its forecast in its earnings statement.
Cogent said the net loss for the third quarter would be between 10 cents and 15 cents per share, including about 10 cents per share in stock-based compensation. Analysts were expecting a 4-cent loss.
Cogent said revenue for the third quarter would be over $55 million, compared to the Thomson Financial average of $57.58 million.
August 8, 2008; 11:23 AM ET
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