Cogent Communications Group / CCOI

About Cogent Communications Group

1015 31st St. NW, Washington, D.C. 20007
www.cogentco.com | 202-295-4200 | Founded: 1999

Industry: Telecommunications | Category: Public Companies

Cogent continued to extend the reach of its Ethernet services, expanding its network to include business customers in about 90 markets in the United States, Canada and Europe. Among the markets added in the past year were Milan, Zurich and Montreal. Customer connections surpassed 12,000 by the end of 2006, marking an increase of 23.3 percent over the previous year.
The company, based in Georgetown, reported an increase in revenue, though its on-net services fared better than its off-net services. On-net services, which represent the bulk of the company's business, include those that physically connect customer buildings to Cogent's network, while off-net services use the equipment of other carriers to make this connection. For the year ended Dec. 31, the company said its on-net revenue increased 34 percent over the previous year, to $105.3 million.
The off-net business, which shed customers in the past two years, had a revenue decline of 23 percent, to $34.4 million. But off-net did reverse the downward trend in customers and added slightly more in the final three months of 2006 compared with the previous quarter.
In March, Cogent began listing its shares on the Nasdaq National Market. In November, the company announced the sale of 7 million shares of its common stock, resulting in gross proceeds of about $103 million.
Cogent has yet to turn a profit. But the company reported in March of this year that its losses for the quarter ended Dec. 31 had narrowed to $9.97 million from double that figure a year earlier.

2006 Financial Data

Revenues: $149,071,000 | Net Income: $-53,757,000
Asssets: $336,876,000 | Earnings Per Share: $-1.16
Total employees: 372 | Local employees: 167