Cogent Communications posts record revenue and profit, but misses guidance

Cogent Communications released its financial statement Thursday showing a 10 percent increase in revenue for the fourth quarter and a 20 percent increase in revenue for the full year. Fourth quarter revenues jumped to $44.8 million from $40.5 million, and full-year revenue increased from $185.7 million to $215.5 million. The growth was notable, but Cogent did miss its guidance slightly for the year, which it had set at between $225 million and $235 million, but was downgraded to $218 million in August 2008.

The Washington D.C.-based ISP and backhaul provider also grew net profit for the year and fourth quarter, with profit for the quarter increasing 13 percent to $31.2 million and profit for the year increasing 25 percent to $122.8 million.

CEO David Schaeffer said he was pleased with his company's results for the year and shared several examples of the company's growth strategy.

"During the quarter traffic grew on our network by approximately 25 percent," Schaeffer said. "We are very encouraged by this increase in rate of growth of traffic on our network and are optimistic about our outlook for 2009. During the year we significantly expanded our footprint by adding 109 buildings to our network. We also significantly expanded our sales force."

The company increased total customer connections by 18 percent as well, with 17,800 total, up from 14,982 at the end of 2007. Cogent reaffirmed guidance for 2009 and seems well-positioned to continue growth and profitability. 

For more:
- see the press release here
- see the full transcript of the earning's call at Seeking Alpha here 

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