GreaseWD40
13 years ago
Cogent Communications CEO to Present at the Bank of America Merrill Lynch Media, Telecom and Entertainment Conference
http://www.prnewswire.com/news-releases/cogent-communications-ceo-to-present-at-the-bank-of-america-merrill-lynch-media-telecom-and-entertainment-conference-129392543.html
WASHINGTON, Sept. 7, 2011 /PRNewswire/ -- Cogent Communications Group, Inc. (NASDAQ: CCOI), one of the largest Internet service providers in the world, today announced that Dave Schaeffer, Cogent's chief executive officer, will present at the Bank of America Merrill Lynch Media, Telecom and Entertainment Conference at 2:20 p.m. PDT, September 15th. The conference is being held at the Beverly Wilshire in Beverly Hills, CA.
(Logo: http://photos.prnewswire.com/prnh/20020204/DCM032LOGO)
Investors and other interested parties may access a live audio webcast of the presentation by going to the Events section of Cogent's website (http://www.cogentco.com/events) to access the link to the live audio webcast. A replay of the webcast will be available on Cogent's website for 15 days following the presentation.
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP, consistently ranked as one of the top five networks in the world. 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 170 markets located in North America and Europe.
Since its inception, Cogent has unleashed the benefits of IP technology, building one of the largest and highest capacity IP networks in the world. This network enables Cogent to offer large bandwidth connections at highly competitive prices. Cogent also offers superior customer support by virtue of its end-to-end control of service delivery and network monitoring.
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 (202) 295-4200 or via email at info@cogentco.com.
Information in this release may involve expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Cogent Communications Group, Inc. as of the date of the release, and we assume no obligation to update any such forward-looking statement. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Some of the factors and risks associated with our business are discussed in Cogent's registration statements filed with the Securities and Exchange Commission and in its other reports filed from time to time with the SEC.
SOURCE Cogent Communications Group, Inc.
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GreaseWD40
13 years ago
Growing Worldwide Communication Increases Demand - Research Report on Cogent Communications Group, Inc. and EarthLink, Inc.
http://www.marketwire.com/press-release/growing-worldwide-communication-increases-demand-research-report-on-cogent-communications-nasdaq-ccoi-1546964.htm
MACAU--(Marketwire - Aug 8, 2011) - Today, www.EquityMarketsInc.com announced its research report highlighting Cogent Communications Group, Inc. (NASDAQ: CCOI) and EarthLink, Inc. (NASDAQ: ELNK). Full content and research is available at www.EquityMarketsInc.com/research.php.
Increased commercial requirements, buoyed by consumer demand for more bandwidth intensive communicative applications, have created a strong market influence within communication. As previous trends and growth relied upon government infrastructure and logistical requirements of large multi-national corporations, the majority of today's requirements are flowing directly from end-users.
As a result of recent credit adjustments, opportunity is being marked for investors to take advantage of equities with high-margin and specialty products. Market-wise investors are carefully watching for value within equities boasting established pipelines and excellent growth prospects. As part of this process, the following companies have been introduced with initial research reports available online.
Equity Markets has reviewed Cogent Communications Group, Inc. a facilities-based provider of Internet access and Internet Protocol (IP), communications services. The Company's network is specifically designed and optimized to transmit data using IP. The full research report on Cogent Communications Group, Inc. (NASDAQ: CCOI) is available here: http://www.EquityMarketsInc.com/researchfile4634.php .
Equity Markets is covering EarthLink, Inc. as a provider of communications services to individual and business customers. Its Consumer Services segment provides nationwide Internet access and related value-added services to individual customers. The full research report on EarthLink, Inc. (NASDAQ: ELNK) is available here: www.EquityMarketsInc.com/researchfile4891.php.
About Equity Markets
Our mission at Equity Markets is to be the best source of content and research, while educating, enlightening and informing investors. Equity Markets combines street smart analysts and professional market researchers to provide investors with detailed company profiles and market coverage.
GreaseWD40
13 years ago
Cogent Communications Reports Second Quarter 2011 Results
http://www.prnewswire.com/news-releases/cogent-communications-reports-second-quarter-2011-results-126756698.html
WASHINGTON, Aug. 4, 2011 /PRNewswire/ --
Financial and Business Highlights
* Service revenue for Q2 2011 of $75.6 million – an increase of 2.9% from $73.5 million for Q1 2011 and an increase of 17.4% from $64.4 million for Q2 2010
o Foreign exchange positively impacts revenue growth from Q1 2011 to Q2 2011 by $0.9 million and positively impacts revenue growth from Q2 2010 to Q2 2011 by $2.2 million
* EBITDA, as adjusted, of $25.4 million for Q2 2011 - an increase of 4.8% from $24.2 million for Q1 2011 and an increase of 34.6% from $18.9 million for Q2 2010
* EBITDA, as adjusted, margin was 33.6% for Q2 2011, 33.0% for Q1 2011 and 29.3% for Q2 2010
* 27,724 customer connections on the Cogent network at the end of Q2 2011 - an increase of 6.0% from 26,145 customer connections at the end of Q1 2011 and an increase of 18.6% from 23,376 customer connections at the end of Q2 2010
* 1,669 on-net buildings on the Cogent network at the end of Q2 2011 - an increase of 60 on-net buildings and 3.7% from 1,609 on-net buildings at the end of Q1 2011 and an increase of 166 on-net buildings and 11.0% from 1,503 on-net buildings at the end of Q2 2010
* Operating income for Q2 2011 of $8.7 million – an increase of 17.8% from $7.4 million for Q1 2011 and an increase of 190.9% from $3.0 million for Q2 2010
Cogent Communications Group, Inc. (NASDAQ: CCOI) today announced service revenue of $75.6 million for the three months ended June 30, 2011, an increase of 2.9% over $73.5 million for the three months ended March 31, 2011 and an increase of 17.4% over $64.4 million for the three months ended June 30, 2010.
(Logo: http://photos.prnewswire.com/prnh/20020204/DCM032LOGO )
On-net revenue was $58.0 million for the three months ended June 30, 2011 an increase of 2.2% over $56.8 million for the three months ended March 31, 2011 and an increase of 15.4% over $50.3 million for the three months ended June 30, 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 $16.8 million for the three months ended June 30, 2011 an increase of 5.2% over $16.0 million for the three months ended March 31, 2011 and an increase of 25.5% over $13.4 million for the three months ended June 30, 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 $0.8 million for the three months ended June 30, 2011, $0.7 million for the three months ended March 31, 2011 and $0.8 million for the three months ended June 30, 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 1.5% to $42.5 million for the three months ended June 30, 2011 from $41.8 million for the three months ended March 31, 2011 and increased 20.4% from $35.3 million for the three months ended June 30, 2010. Gross profit margin, excluding equity-based compensation expense, was 56.2% for the three months ended June 30, 2011, 56.9% for the three months ended March 31, 2011, and 54.8% for the three months ended June 30, 2010.
Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased 4.8% to $25.4 million for the three months ended June 30, 2011 from $24.2 million for the three months ended March 31, 2011 and increased 34.6% from $18.9 million for the three months ended June 30, 2010. EBITDA, as adjusted, margin was 33.6% for the three months ended June 30, 2011, 33.0% for the three months ended March 31, 2011, and 29.3% for the three months ended June 30, 2010.
Basic and diluted net income (loss) per share was $0.05 for the three months ended June 30, 2011, $(0.01) for the three months ended March 31, 2011 and $(0.02) for the three months ended June 30, 2010. A gain of $2.7 million on the release of a lease obligation is included in net income for the three months ended June 30, 2011.
Total customer connections increased 6.0% to 27,724 as of June 30, 2011 from 26,145 as of March 31, 2011 and increased 18.6% from 23,376 as of June 30, 2010. On-net customer connections increased 6.8% to 23,360 as of June 30, 2011 from 21,878 as of March 31, 2011 and increased 21.7% from 19,193 as of June 30, 2010. Off-net customer connections were 3,759 as of June 30, 2011, 3,642 as of March 31, 2011 and 3,408 as of June 30, 2010. Non-core customer connections were 605 as of June 30, 2011, 625 as of March 31, 2011 and 775 as of June 30, 2010.
The number of on-net buildings increased by 60 on-net buildings to 1,669 on-net buildings as of June 30, 2011 from 1,609 on-net buildings as of March 31, 2011, and increased by 166 on-net buildings from 1,503 on-net buildings as of June 30, 2010.
Conference Call and Website Information
Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on August 4, 2011 to discuss Cogent's operating results for the second 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 165 markets located in North America and Europe.
Cogent Communications is headquartered at 1015 31st Street, NW, Washington, D.C. 20007. For more information, visit http://www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.
GreaseWD40
14 years ago
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 (202) 295-4200 or via email at info@cogentco.com.
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
GreaseWD40
14 years ago
Cogent Communications to Host First Quarter 2011 Earnings Call on May 5, 2011
http://www.prnewswire.com/news-releases/cogent-communications-to-host-first-quarter-2011-earnings-call-on-may-5-2011-119792099.html
WASHINGTON, April 13, 2011 /PRNewswire/ -- Cogent Communications Group, Inc. (NASDAQ: CCOI) 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. Cogent will issue a press release announcing the operating results at 7 a.m. (ET) on May 5, 2011.
To participate, investors and other interested parties may access the earnings call as follows:
Dial-in Numbers:
1-888-204-4517 for U.S. callers
1-913-312-0860 for international callers
Internet:
An audio webcast is accessible under "Events" in the "News" section of Cogent's website at www.cogentco.com and will remain available through July 31, 2011.
Telephone Replay:
Thursday, May 5, 2011 at 10:30 a.m. ET and continuing through 11:59 p.m. ET on Wednesday, May 11.
To listen to the replay, please dial 1-719-457-0820, Access code 2809761
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP, consistently ranked as one of the top five networks in the world. 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.
Since its inception, Cogent has unleashed the benefits of IP technology, building one of the largest and highest capacity IP networks in the world. This network enables Cogent to offer large bandwidth connections at highly competitive prices. Cogent also offers superior customer support by virtue of its end-to-end control of service delivery and network monitoring.
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 (202) 295-4200 or via email at info@cogentco.com.
GreaseWD40
14 years ago
VP, CFO & Treasurer of Cogent Communications Group Inc. Cogent (CCOI) Thaddeus Gerard Weed sells 1,250 shares of CCOI on 04/01/2011 at an average price of $14.73 a share.
Cogent Communications Group Inc. has a market cap of $672.97 million; its shares were traded at around $14.66 with a P/E ratio of 733 and P/S ratio of 2.55.
CFO Recent Trades:
* Sell: VP, CFO & Treasurer Thaddeus Gerard Weed sold 439 shares of CCOI stock on 02/01/2011 at the average price of 13.92. Thaddeus Gerard Weed owns at least 120,999 shares after this. The price of the stock has increased by 5.32% since.
* Sell: VP, CFO & Treasurer Thaddeus Gerard Weed sold 3,125 shares of CCOI stock on 01/14/2011 at the average price of 15. Thaddeus Gerard Weed owns at least 121,438 shares after this. The price of the stock has decreased by 2.27% since.
* Sell: VP, CFO & Treasurer Thaddeus Gerard Weed sold 1,666 shares of CCOI stock on 01/03/2011 at the average price of 14.14. Thaddeus Gerard Weed owns at least 121,438 shares after this. The price of the stock has increased by 3.68% since.
* Sell: VP, CFO & Treasurer Thaddeus Gerard Weed sold 416 shares of CCOI stock on 12/01/2010 at the average price of 12.29. Thaddeus Gerard Weed owns at least 123,104 shares after this. The price of the stock has increased by 19.28% since.
* Sell: VP, CFO & Treasurer Thaddeus Gerard Weed sold 416 shares of CCOI stock on 11/01/2010 at the average price of 10.71. Thaddeus Gerard Weed owns at least 103,520 shares after this. The price of the stock has increased by 36.88% since.
Directors and Officers Recent Trades:
* Buy: Director Tim Weingarten bought 4,370 shares of CCOI stock on 01/06/2011 at the average price of 14.3. Tim Weingarten owns at least 37,976 shares after this. The price of the stock has increased by 2.52% since.
* Buy: Director Marc Montagner bought 5,500 shares of CCOI stock on 01/06/2011 at the average price of 13.98. Marc Montagner owns at least 13,000 shares after this. The price of the stock has increased by 4.86% since.
* Buy: Director Richard Liebhaber bought 5,280 shares of CCOI stock on 01/04/2011 at the average price of 14.2. Richard Liebhaber owns at least 46,030 shares after this. The price of the stock has increased by 3.24% since.
* Buy: Director Blake Bath bought 5,275 shares of CCOI stock on 01/03/2011 at the average price of 14.22. Blake Bath owns at least 39,600 shares after this. The price of the stock has increased by 3.09% since.
* Sell: VP & Chief Legal Officer Robert N Jr Beury sold 3,000 shares of CCOI stock on 03/24/2011 at the average price of 13.92. Robert N Jr Beury owns at least 83,500 shares after this. The price of the stock has increased by 5.32% since.
GreaseWD40
14 years ago
Industry Spotlight: Cogent’s Dave Schaeffer Looks Ahead
http://www.telecomramblings.com/2011/03/industry-spotlight-cogents-dave-schaeffer-looks-ahead/#more-10446
March 11th, 2011 by Rob Powell
Here for a Q&A today is the CEO of Cogent, Dave Schaeffer, who doesn’t really need much of an introduction. Since the dot com bubble Cogent has followed a rather vocal and independent path, fusing a wholesale IP backbone, a metro-fiber fed enterprise data business, and simple but aggressive pricing. He didn’t make many friends along the way, actually earning the title ‘the most hated man in telecom’ from Forbes in a profile a few years ago. But two weeks ago, Cogent Communications (NASDAQ:CCOI, news, filings) posted a solid quarterly profit after several years of steady, disciplined growth, announced a new stock buyback effort, and appears poised to join TW Telecom and AboveNet on the list of competitive fiber operators who have made it through to the other side. With no further ado:
TR: Cogent has been steadily marching toward a sustainable profitability. Does this mean you will have greater flexibility and be able to loosen the reins a bit, or will it be business as usual? How are you putting your cashflow to work?
DS: I think it’s business as usual. We’ve been pretty consistent in producing free cash from operations since mid ’06. Over the course of the past four years we’ve used that cash for different things. First we bought back a significant amount of stock in ’06, ’07, and early ’08. We then shifted in mid-2008 and started buying back our convertible debt at a deep discount, and we really bought back all we could get our hands on. Then in late ’08 we shifted gears yet again and started accelerating our footprint expansion, buying a lot more dark fiber both in terms of metro routes and longhaul routes. In late ’08, ’09 and ’10 we almost doubled the footprint of the network, giving us a much larger addressable network.
TR: Will you be continuing that network expansion?
DS: We do expect that the footprint expansion will slow, just because we’ve reached most of the markets that make sense. Today we’re in about 160 markets across North America and Europe. There are probably about another 15 or so that fit our criteria. In terms of countries we’re up to 30, with the addition of Greece, we’ll add another 6 or 7 countries and then we’ll have optimized our footprint against our addressable market. We’ve been pretty consistent in adding buildings to the network at about 120-130 per year, and we expect that to continue.
TR: On your earnings call, you mentioned the purchase of fiber into Greece, do you have any more details? And what other European markets do you have your eye on?
DS: We bought fiber from Sofia in Bulgaria down to Thessaloniki. We do anticipate extending to Athens eventually, just as there are some other gaps in our network. For instance, in Poland we go to Warsaw but not to Gdansk, we do not yet go to Lithuania, Latvia, Russia, Turkey, or Macedonia – we consider these holes in our addressable market for longhaul extensions. And then obviously we’ll continue to evaluate metro markets to determine which other cities fit our criteria.
TR: Do you have any plans to enter Asia?
DS: I don’t think so at this time for several reasons. First, the regulatory climate is not conducive in most of those countries to an open internet. Second, there is a lack of infrastructure, i.e. dark fiber, available for purchase. And third, while these are rapidly growing markets, they still are relatively small. They will continue to grow in scale, and at some point that may make us reevaluate our decision. But I think at this time we’re going to be focused on the markets that generate the majority of the traffic – North America and Europe.
TR: Historically, Cogent has purchased many assets as part of its growth. Last year, we saw a surge in consolidation amongst fiber operators, but Cogent did not participate. What’s different this time, and are you actively looking at such opportunities?
DS: There are three things that are different. First, there is a large number of suppliers that are willing to sell us dark fiber in areas we may not have ample fiber or any fiber, so we are able to expand our footprint through the acquisition of fiber IRUs. Second, a lot of our acquisitions were driven not only by the need to acquire the fiber but also the active equipment to light it, i.e. the routers and transport gear. Most of our needs were satiated at the right price points in the first wave. What’s been for sale lately is not equipment but rather infrastructure. And third, and most important, is price. Cogent exists today in large part because of our very disciplined price structure in terms of what we would pay for assets. We reviewed a lot of the transactions in the market and the prices that the sellers were looking for, and we concluded that we were not going to participate, as our prices were far lower than what the sellers were expecting to get. That could change in the future, but for right now I think it’s fair to say we’ve been priced out of the market.
TR: For your corporate-centric business, you have been adding buildings at a very steady clip. What sort of buildings have you been focusing on?
DS: In terms of multi-tenant office buildings, we’re in a little over 1,100 buildings today and we see that number continuing to grow at least another couple hundred buildings. Our multitenant business is almost exclusively a North American business simply because we have such stringent criteria on the type of building we go after. We’re looking for very large buildings that are tightly clustered in a central business district and have lots of unique tenants in them. So we won’t go after either smaller buildings or single tenant buildings, and there is a somewhat finite universe of those types of buildings we seek. But we think that at least for the next few years we’ll be able to continue to grow the multitenant or corporate footprint at the same rate as we have historically.
TR: Do you foresee expanding your focus to other types of buildings at some point, or is this the only type you are aiming at?
DS: It really is all we’re aiming at. We’re very focused on our return on incremental capital invested. We think that based on our product set and our pricing model, smaller buildings or buildings with less tenants in them will not provide us an adequate return on capital. Today in our multitenant office footprint, we have about 9.6 customer connections per building. We think we will continue to grow both by adding additional buildings but also over time doubling that penetration.
TR: You have also been adding off-net connections rapidly lately, are these to the same types of buildings in advance of bringing them on-net?
DS: Our off-net buildings actually look very different than our on-net buildings. We have today approximately 3,520 off-net customers in slightly over 3,400 buildings. Our typical off-net building is about 25,000 square feet and would have about 3 opportunities in it. For off-net, we are typically first selling someone on-net services where they would have a branch office in a building that will probably never meet our return on capital criteria. So we will then offer them an off-net service.
TR: For this off-net connectivity, have you been participating in the new Ethernet exchanges or do you prefer direct NNI’s?
DS: It’s actually through direct purchases usually through the ILEC. We do not participate in the Ethernet exchanges, and quite honestly I don’t see a lot of value in them for us. We have direct NNIs with the major carriers in each of the markets in which we operate. Then we provide either TDM or Ethernet services based on both customer requirements and relative costs. The exchanges are designed to help someone who purchases a relatively low amount of connections per market or is trying to purchase from a large number of providers. While we have off-net purchases from over 180 suppliers, the vast majority of our off-net purchases do come from the ILEC. To justify the cost of buying an interface into an Ethernet exchange for that one-off chance that someone other than the ILEC would have it at a lower price and we could not deal with them directly – it just doesn’t seem to make a lot of economic sense for us.
TR: Do you anticipate alternative metro providers will start to make up a greater share of your off-net connectivity?
DS: I hope that becomes the case, although I’m very doubtful it will. The reason is that many of those other parties have the same economic constraints that we have given the cost to build into those facilities versus the revenue opportunity that is generated. For the ILEC, they have ubiquitous facilities within their territory and can generally justify that as capital avoidance as they are decommissioning copper plant and also because their extension costs are relatively low. For competitive carriers I think it is going to be more challenging. There will be some opportunities, but most smaller buildings will continue to have facilities based services only from the ILEC for the foreseeable future.
TR: Thank you for talking with Telecom Ramblings!
GreaseWD40
14 years ago
Cogent Communications CEO to Present at Two Upcoming Conferences
http://finance.yahoo.com/news/Cogent-Communications-CEO-to-prnews-1490285769.html?x=0&.v=1
WASHINGTON, Feb. 28, 2011 /PRNewswire/ -- Cogent Communications Group, Inc. (Nasdaq:CCOI - News), one of the largest Internet service providers in the world, today announced that Dave Schaeffer, Cogent's chief executive officer, will present at the following conferences:
(Logo: http://photos.prnewswire.com/prnh/20020204/DCM032LOGO )
The Credit Suisse Global Media and Communications Convergence Conference is being held at the Mandarin Oriental, Miami in Miami, FL. Dave Schaeffer will be presenting on Monday, March 7th at 3:45 PM ET.
The Deutsche Bank Media & Telecom Conference is being held at The Breakers Hotel in Palm Beach, FL. Dave Schaeffer will be presenting at 4:50 PM ET on Tuesday, March 8th.
Investors and other interested parties may access a live audio webcast of the conference presentations by going to the Events section of Cogent's website (http://www.cogentco.com/events) to access the link to the live audio webcasts. A replay of the webcasts will be available on Cogent's website for 90 days following the presentations.
About Cogent Communications
Cogent Communications (Nasdaq:CCOI - News) is a multinational, Tier 1 facilities-based ISP, consistently ranked as one of the top five networks in the world. 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.
Since its inception, Cogent has unleashed the benefits of IP technology, building one of the largest and highest capacity IP networks in the world. This network enables Cogent to offer large bandwidth connections at highly competitive prices. Cogent also offers superior customer support by virtue of its end-to-end control of service delivery and network monitoring.
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 (202) 295-4200 or via email at info@cogentco.com.
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