Cogent Communications Holdings, Inc. (CCOI) has reported a 9.43 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.46 million, or $0.08 a share in the quarter, compared with $3.16 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 9.75 percent to $113.06 million from $103.02 million in the previous year period. Gross margin for the quarter expanded 67 basis points over the previous year period to 56.81 percent. Total expenses were 85.79 percent of quarterly revenues, up from 84.94 percent for the same period last year. That has resulted in a contraction of 86 basis points in operating margin to 14.21 percent.
Operating income for the quarter was $16.06 million, compared with $15.52 million in the previous year period.
Operating cash flow improves
Cogent Communications Holdings, Inc. has generated cash of $74.09 million from operating activities during the nine month period, up 19.86 percent or $12.28 million, when compared with the last year period.
The company has spent $38.04 million cash to meet investing activities during the nine month period as against cash outgo of $30.51 million in the last year period.
The company has spent $92.42 million cash to carry out financing activities during the nine month period as against cash outgo of $109.09 million in the last year period.
Cash and cash equivalents stood at $148.15 million as on Sep. 30, 2016, down 28.53 percent or $59.14 million from $207.29 million on Sep. 30, 2015.
Working capital drops significantly
Cogent Communications Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $140.32 million as at Sep. 30, 2016, down 26.69 percent or $51.08 million from $191.40 million on Sep. 30, 2015. Current ratio was at 3.26 as on Sep. 30, 2016, down from 3.79 on Sep. 30, 2015.
Days sales outstanding went down to 26 days for the quarter compared with 28 days for the same period last year.
At the same time, days payable outstanding went down to 27 days for the quarter from 31 for the same period last year.
Debt remains almost stable
Cogent Communications Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $575.75 million as on Sep. 30, 2016, down 0.88 percent or $5.12 million from $580.88 million on Sep. 30, 2015. Total debt was 93.22 percent of total assets as on Sep. 30, 2016, compared with 86.32 percent on Sep. 30, 2015. Interest coverage ratio improved to 1.62 for the quarter from 1.55 for the same period last year.
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