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09-12-2002, 12:17 PM #1Web Hosting Master
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cogent acquires NYC's FiberCity Networks
just thought some of yous might be interested, this just popped up on my trillian news alert (i love trillian pro).
http://dc.internet.com/news/article.php/10849_1462021
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09-12-2002, 12:41 PM #2Web Hosting Master
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hmmmmmm))
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09-12-2002, 01:51 PM #3Web Hosting Master
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Wow, glad to see they keep buying up networks.
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09-12-2002, 01:54 PM #4Web Hosting Master
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Yeah not bad for acompany that supposedly doesnt make any money...
heh
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09-12-2002, 02:17 PM #5Junior Guru
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A company can be in the black and still buy out another company. Considering you can buy it out with your own shares. No money required.
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09-12-2002, 02:53 PM #6Junior Guru Wannabe
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Abaddon: The term would be, in the "red", not black, black is good.
It looks like Cogent (AMEX: COI) is growing more profitable by the quarter. It's still a bit premature, but revenues are up to 18.6Mill, up from 3.5 the prior quarter. I dont know about you, but that sounds like good growth to me. EPS (earnings per share) are quickly going up. They're still in the red as far as Net profit goes, but with some operational cost cutting it could easily become profitable.
Just my .02
- David.
http://yahoo.marketguide.com/MGI/mg....std&Ticker=COI
^^^ a link to their Income statement.
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09-12-2002, 09:27 PM #7Coder :)
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take note... in former industry articles, their methods of calculating revenue figures has come into question... why? because they calculate a revenue figure based on the signed contracts (and they pay their sales people their commission according to that)... but the majority of these 'clients' that sign the contracts never do actually pay a dime in service fees... why can't cogent enforce these contracts? too much of a legal hassle... it'd cost them more to go after everybody than the price of the contract...
these were the allegations made by a few former cogent sales reps... heh...
davidarenson - "growing more profitable"... when a company isn't profitable at all, and won't be profitable for the next few quarters (if ever)... how can they grow 'more profitable'? hehe...
jdp29053 - most of the telcoms out there are in debt and/or losing money... n yet they still buy up other companies... as long as a company can find sheep stupid enough to put up money for them to go n buy out other companies, the company can do what they wish...
the only reason cogent is doing as well is it is, is because its taking advantage of the millions if not billions that these other companies had spent in building infrastructure... and then buying up this infrastructure at pennies on the dollar... heh... cogent has debt, and lots of it... even if they fired all their staff, their interest payments plus the cost of their own transit would still outweigh these 'revenues'...
if cogent can't get/maintain better peering, they're going to sink... heh... o yeah, n they need better trained apes figuring their routing... hehe...Last edited by netdude; 09-12-2002 at 09:33 PM.
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09-12-2002, 09:31 PM #8Junior Guru
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Yeah red I keep messing that up.
I used to work for an ISP we had about $200k plus in late payments from alot of our dedicated t1-t3 people. When we tried to bill out for it we got about 50k and called it good.Last edited by Abaddon; 09-12-2002 at 09:39 PM.
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09-12-2002, 09:38 PM #9Junior Guru
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doh
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09-12-2002, 10:04 PM #10Coder :)
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lol... forgot to mention... cogent's ceo... the last company he formed went into bankruptcy and isn't around no more... lol
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09-12-2002, 11:15 PM #11Web Hosting Master
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Ive never really dove into the financial aspects of a company before i became interested in web hosting.. most companies i could care less... i mean you buy a pair of jeans from Sears who cares if they are overselling right..lol
But anyway, i just dont understand how they can continue like this or why they would want too...
But in anycase im staying away from cogent, its too confusing and no one knows the truth about their stability... thats enough for me to know that i wouldnt want to host anything worth while on it.
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09-13-2002, 12:06 AM #12Coder :)
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buying bandwidth is a lot different from buying a pair of jeans... u buy bandwidth, its something u get over time... jeans, one-time deal, after the sale, u couldn't care less if sears blows up... cogent blows up...
big hassle getting another provider... especially considering most cogent datacenters are not truly multihomed... and the IPs issued belong to cogent... so BIG hassle changing providers...
n top that all off... cogent datacenter expect cheap bandwidth in relatively low volumes... cogent goes under, so do they cuz they can't give them what their clients expect and demand (and what may be in their contract with the client)Last edited by netdude; 09-13-2002 at 12:23 AM.
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09-13-2002, 05:28 AM #13Web Hosting Master
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Thats exactly what im saying,, so i just dont see how they can or would want to stay in business like this...
Can the CEO's and Advisors of cogent not do the match?
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09-13-2002, 06:54 AM #14Web Hosting Master
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They're still in the red as far as Net profit goes, but with some operational cost cutting it could easily become profitable.
It's unhealthy for a company to make too much profit anyway.. ermm should we invest this money into another venture or pay the full tax on our profit?? I know what I would doLast edited by StevenG; 09-13-2002 at 07:02 AM.
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09-13-2002, 09:34 AM #15Web Hosting Guru
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Originally posted by netdude
take note... in former industry articles, their methods of calculating revenue figures has come into question... why? because they calculate a revenue figure based on the signed contracts (and they pay their sales people their commission according to that)... but the majority of these 'clients' that sign the contracts never do actually pay a dime in service fees... why can't cogent enforce these contracts? too much of a legal hassle... it'd cost them more to go after everybody than the price of the contract...
these were the allegations made by a few former cogent sales reps... heh...
I really find it amusing that you keep inventing such things when confronted with Cogent's real financial statements. I suggest that you do not continue worrying about Cogent's financial health. You should rather start worrying about Internap's financial health as you plan on using them once your $1million funding has been granted. I'm not going to post these figures because they would be off-topic but they're really alarming because they haven't made a dime for over 6 years.321Host-It Internet Services
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