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Cogent Communications Reports First Quarter 2014 Results and Increases Regular Quarterly Dividend on Common Stock

Cogent Communications Reports First Quarter 2014 Results and Increases Regular                       Quarterly Dividend on Common Stock  PR Newswire  WASHINGTON, May 8, 2014  WASHINGTON, May 8, 2014 /PRNewswire/ --  Financial and Business Highlights    oService revenue for Q1 2014 of $92.9 million – an increase of 3.4% from     $89.9 million for Q4 2013 and an increase of 9.9% from $84.6 million for     Q1 2013   oCogent approves payment of its regular quarterly dividend of $0.17 per     common share to be paid on June 18, 2014 to shareholders of record on May     30, 2014         oThe second quarter 2014 per share regular dividend of $0.17          represents an increase of 6% from the first quarter 2014 regular          dividend of $0.16 per share and a 31% increase from the second          quarter 2013 regular dividend of $0.13 per share    oUnder Cogent's return of capital program, Cogent purchased 405,000 shares     of its common stock for $14.2 million during Q1 2014 at an average price     of $35.05 per share   oTraffic increased by 16% from Q4 2013 to Q1 2014 and increased by 69% from     Q1 2013   oNon-GAAP gross margin percentage expanded by 90 basis points from 57.4%     for Q4 2013 to 58.3% for Q1 2014 and expanded by 220 basis points from     56.1% for Q1 2013   oEBITDA, as adjusted, for Q1 2014 of $32.1 million – an increase of 1.8%     from $31.5 million for Q4 2013 and an increase of 13.5% from $28.3 million     for Q1 2013   oCogent lit its 2,000^th building during the quarter and there were 2,024     buildings on the Cogent network at the end of Q1 2014   o41,947 customer connections were on the Cogent network at the end of Q1     2014 – an increase of 4.4% from 40,174 customer connections at the end of     Q4 2013 and an increase of 16.6% from 35,968 customer connections at the     end of Q1 2013  Cogent Communications Group, Inc. (NASDAQ: CCOI) today announced service revenue of $92.9 million for the three months ended March 31, 2014, an increase of 3.4% from $89.9 million for the three months ended December 31, 2013 and an increase of 9.9% from $84.6 million for the three months ended March 31, 2013. The impact of foreign exchange negatively impacted service revenue growth from Q4 2013 to Q1 2014 by $0.1 million and positively impacted service revenue growth from Q1 2013 to Q1 2014 by $0.3 million. On a constant currency basis, service revenue grew by 3.5% from Q4 2013 to Q1 2014 and grew by 9.6% from Q1 2013 to Q1 2014.  Cogent Communications Logo  On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was $69.1 million for the three months ended March 31, 2014; an increase of 4.6% over $66.0 million for the three months ended December 31, 2013 and an increase of 12.0% over $61.7 million for the three months ended March 31, 2013.  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. Off-net revenue was $23.5 million for the three months ended March 31, 2014; an increase of 0.3% over $23.4 million for the three months ended December 31, 2013 and an increase of 5.3% over $22.3 million for the three months ended March 31, 2013.  Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell. Non-core revenue was $0.4 million for the three months ended March 31, 2014, $0.4 million for the three months ended December 31, 2013 and $0.6 million for the three months ended March 31, 2013.  Non-GAAP gross profit increased 5.1% to $54.2 million for the three months ended March 31, 2014 from $51.6 million for the three months ended December 31, 2013 and increased by 14.4% from $47.4 million for the three months ended March 31, 2013. Non-GAAP gross profit margin percentage was 58.3% for the three months ended March 31, 2014, 57.4% for the three months ended December 31, 2013, and 56.1% for the three months ended March 31, 2013.  Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased 1.8% to $32.1 million for the three months ended March 31, 2014 from $31.5 million for the three months ended December 31, 2013 and increased 13.5% from $28.3 million for the three months ended March 31, 2013. EBITDA, as adjusted, margin was 34.6% for the three months ended March 31, 2014, 35.1% for the three months ended December 31, 2013, and 33.5% for the three months ended March 31, 2013.  Basic net income per share was $0.00 for the three months ended March 31, 2014, $1.14 for the three months ended December 31, 2013 and $0.01 for the three months ended March 31, 2013. Included in basic and diluted net income per share for the quarter ended December 31, 2013 was an income tax benefit totaling $49.3 million.  Total customer connections increased 4.4% to 41,947 as of March 31, 2014 from 40,174 as of December 31, 2013 and increased 16.6% from 35,968 as of March 31, 2013. On-net customer connections increased 4.7% to 36,306 as of March 31, 2014 from 34,671 as of December 31, 2013 and increased 17.4% from 30,914 as of March 31, 2013. Off-net customer connections increased 3.1% to 5,244 as of March 31, 2014 from 5,088 as of December 31, 2013 and increased 14.2% from 4,591 as of March 31, 2013. Non-core customer connections were 397 as of March 31, 2014, 415 as of December 31, 2013 and 463 as of March 31, 2013.  The number of on-net buildings increased by 34 on-net buildings to 2,024 on-net buildings as of March 31, 2014 from 1,990 on-net buildings as of December 31, 2013, and increased by 134 on-net buildings from 1,890 on-net buildings as of March 31, 2013.  Quarterly Dividend and Increase Approved  On April 17, 2014, Cogent's board approved a dividend of $0.17 per common share payable on June 18, 2014 to shareholders of record on May 30, 2014. The second quarter 2014 regular dividend of $0.17 per share represents an increase of 6% from the first quarter 2014 regular dividend of $0.16 per share and a 31% increase from the second quarter 2013 regular dividend of $0.13 per share.  During the quarter ended March 31, 2014 Cogent purchased 405,000 share of its common stock for $14.2 million at an average price per share of $35.05 under Cogent's return of capital program. Under Cogent's return of capital program, Cogent plans on returning additional capital to its shareholders each quarter through either stock buybacks or a special dividend or a combination of stock buybacks and a special dividend. The aggregate payment under this program will total at least $10.5 million each quarter and this amount is in addition to Cogent's regular quarterly dividend payments. Since the amount paid for stock buybacks in the first quarter was more than $10.5 million Cogent will not make a special dividend payment in the second quarter under the return of capital program. The return of capital program is planned to continue until Cogent's net debt to trailing twelve months EBITDA, as adjusted, ratio reaches 2.50.Cogent's net debt to trailing twelve months EBITDA, as adjusted, ratio was 1.86 at March 31, 2014 and was 1.57 at December 31, 2013.  The payment of any future dividends and any other returns of capital will be at the discretion of Cogent's board of directors and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by Cogent's board of directors.  Conference Call and Website Information  Cogent will host a conference call with financial analysts at 7:30 a.m. (ET) on May 8, 2014 to discuss Cogent's operating results for the first quarter of 2014 and to discuss Cogent's expectations for full year 2014. Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" 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, Ethernet transport, and colocation services. Cogent's facilities-based, all-optical IP network backbone provides services in over 180 markets globally.  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.      COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES  Summary of Financial and Operational Results                         Q1 2013    Q2 2013    Q3 2013    Q4 2013    Q1 2014 Metric ($ in 000's, except share and per share data) – unaudited On-Net revenue          $61,678    $62,693    $64,548    $66,032    $69,087  % Change from         2.1%       1.6%       3.0%       2.3%       4.6% previous Qtr. Off-Net revenue         $22,309    $22,604    $22,767    $23,438    $23,498 % Change from previous  3.1%       1.3%       0.7%       2.9%       0.3% Qtr. Non-Core revenue (1)    $566       $506       $446       $389       $352  % Change from         -3.4%      -10.6%     -11.9%     -12.8%     -9.5% previous Qtr. Service revenue – total $84,553    $85,803    $87,761    $89,859    $92,937  % Change from         2.3%       1.5%       2.3%       2.4%       3.4% previous Qtr. Network operations      $37,154    $36,950    $37,327    $38,288    $38,723 expenses (2) % Change from previous  -0.9%      -0.5%      1.0%       2.6%       1.1% Qtr. Non-GAAP gross margin   $47,399    $48,853    $50,434    $51,571    $54,214 (2) % Change from previous  5.0%       3.1%       3.2%       2.3%       5.1% Qtr. Non-GAAP gross margin   56.1%      56.9%      57.5%      57.4%      58.3% percentage (2) Selling, general and administrative expenses $19,106    $19,215    $19,772    $20,937    $24,392 (3)  % Change from         10.4%      0.6%       2.9%       5.9%       16.5% previous Qtr. Depreciation and        $15,874    $15,900    $16,024    $16,562    $17,204 amortization expense % Change from previous  -1.6%      0.2%       0.8%       3.4%       3.9% Qtr. Equity-based            $2,514     $2,137     $2,061     $2,007     $2,006 compensation expense % Change from previous  -0.7%      -15.0%     -3.6%      -2.6%      0.0% Qtr. Operating income       $9,905     $11,601    $12,577    $12,065    $12,907 % Change from previous  8.0%       17.1%      8.4%       -4.1%      7.0% Qtr. Net income              $361       $1,607     $2,122     $52,599    $125 Basic net income per   $0.01      $0.03      $0.05      $1.14      $0.00 common share Diluted net income per $0.01      $0.03      $0.05      $1.10      $0.00 common share Weighted average common 45,537,607 46,040,692 46,171,194 46,302,926 46,409,735 shares – basic % Change from previous  0.1%       1.1%       0.3%       0.3%       0.2% Qtr. Weighted average common 46,435,677 46,769,184 46,823,167 48,800,560 46,907,360 shares – diluted % Change from previous  2.1%       0.7%       0.1%       4.2%       -3.9% Qtr. EBITDA, as adjusted (4) $28,295    $29,638    $30,703    $31,548    $32,117  % Change from         -0.9%      4.7%       3.6%       2.8%       1.8% previous Qtr. EBITDA, as adjusted     33.5%      34.5%      35.0%      35.1%      34.6% margin (4) Net cash provided by    $14,962    $22,703    $14,898    $29,288    $10,636 operating activities % Change from previous  -53.7%     51.7%      -34.4%     96.6%      -63.7% Qtr. Capital expenditures    $16,316    $12,455    $10,165    $10,095    $15,623  % Change from         58.6%      -23.7%     -18.4%     -0.7%      54.8% previous Qtr. Customer Connections – end of period On-Net                  30,914     31,876     33,310     34,671     36,306  % Change from         3.5%       3.1%       4.5%       4.1%       4.7% previous Qtr. Off-Net                 4,591      4,728      4,886      5,088      5,244 % Change from previous  2.8%       3.0%       3.3%       4.1%       3.1% Qtr. Non-Core (1)            463        453        443        415        397  % Change from         -1.7%      -2.2%      -2.2%      -6.3%      -4.3% previous Qtr. Total                   35,968     37,057     38,639     40,174     41,947  % Change from         3.3%       3.0%       4.3%       4.0%       4.4% previous Qtr. Other – end of period Buildings On-Net        1,890      1,921      1,955      1,990      2,024 Employees               619        633        673        706        724      Consists of legacy services of companies whose assets or businesses were (1) acquired by Cogent, primarily including voice services (only provided in     Toronto, Canada).     Network operations expense excludes equity-based compensation expense of     $155, $126, $114, $112 and $113 in the three months ended March 31, 2013, (2) June 30, 2013, September 30, 2013, December 31, 2013 and March 31, 2014,     respectively. Non-GAAP gross margin represents service revenue less     network operations expense, excluding equity-based compensation and     amounts shown separately (depreciation expense).     Excludes equity-based compensation expense of $2,359, $2,011, $1,947, (3) $1,895 and $1,893 in the three months ended March 31, 2013, June 30, 2013,     September 30, 2013, December 31, 2013 and March 31, 2014, respectively.     See schedule of non-GAAP metrics below for definition and reconciliation     to GAAP measures. EBITDA, as adjusted, includes net gains (losses) from (4) asset related transactions of $2, $41, $914 and $2,295 in the three months     ended March 31, 2013 and September 30, 2013, December 31, 2013 and March     31, 2014, respectively.    Schedule of Non-GAAP Measures  EBITDA and EBITDA, as adjusted  EBITDA represents net cash flows from operating activities plus changes in operating assets and liabilities, cash interest expense and income tax expense. Management believes the most directly comparable measure to EBITDA calculated in accordance with generally accepted accounting principles in the United States, or GAAP, is cash flows provided by operating activities.  EBITDA, as adjusted, represents EBITDA plus net gains (losses) on asset related transactions. The Company believes EBITDA, as adjusted, is a useful measure of its ability to service debt, fund capital expenditures and expand its business. EBITDA, as adjusted, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. The Company also believes that EBITDA is a frequently used measure by securities analysts, investors, and other interested parties in their evaluation of issuers.  EBITDA and EBITDA, as adjusted, are not recognized terms under GAAP and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, EBITDA is not intended to reflect the Company's free cash flow, as it does not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of EBITDA and EBITDA, as adjusted, may also differ from the calculation of EBITDA and EBITDA, as adjusted, by its competitors and other companies and as such, its utility as a comparative measure is limited.    COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES EBITDA, as adjusted, is reconciled to cash flows provided by operating activities in the table below.                                      Q1 2013  Q2 2013 Q3 2013 Q4 2013 Q1 2014 ($ in 000's) – unaudited Net cash flows provided by operating $14,962   $22,703 $14,898 $29,288 $10,636 activities Changes in operating assets and      5,365     (1,446) 6,771   (8,158) 9,048 liabilities Cash interest expense and income tax 7,966     8,381   8,993   9,504   10,138 expense Gains on asset related transactions  2         -       41      914     2,295 EBITDA, as adjusted                  $28,295   $29,638 $30,703 $31,548 $32,117    Impact of foreign currencies ("constant currency" impact) on change in sequential quarterly service revenue  ($ in 000's) – unaudited                                               Q1 2014 Service revenue, as reported – Q1 2014                                 $92,937 Impact of foreign currencies on service revenue                        98 Service revenue - Q1 2014, as adjusted (1)                            $93,035 Service revenue, as reported – Q4 2013                                 $89,859 Constant currency increase from Q4 2013 to Q1 2014 - (Service revenue, $3,176 as adjusted for Q1 2014 less service revenue, as reported for Q4 2013) Percent increase (Constant currency increase from Q4 2013 to Q1 2014   3.5% divided by service revenue, as reported for Q4 2013)      Service revenue, as adjusted, is determined by translating the service     revenue for the three months ended March 31, 2014 at the average foreign     currency exchange rates for the three months ended December 31, 2013. The (1) Company believes that disclosing quarterly revenue growth without the     impact of foreign currencies on service revenue is a useful measure of     revenue growth. Service revenue, as adjusted, is an integral part of the     internal reporting and planning system used by management as a supplement     to GAAP financial information.    Impact of foreign currencies ("constant currency" impact) on change in prior year quarterly service revenue  ($ in 000's) – unaudited                                               Q1 2014 Service revenue, as reported – Q1 2014                                 $92,937 Impact of foreign currencies on service revenue                        (280) Service revenue - Q1 2014, as adjusted (2)                            $92,657 Service revenue, as reported – Q1 2013                                 $84,553 Constant currency increase from Q1 2013 to Q1 2014 - (Service revenue, $8,104 as adjusted for Q1 2014 less service revenue, as reported for Q1 2013) Percent increase (Constant currency increase from Q1 2013 to Q1 2014   9.6% divided by service revenue, as reported for Q1 2013)      Service revenue, as adjusted, is determined by translating the service     revenue for the three months ended March 31, 2014 at the average foreign     currency exchange rates for the three months ended March 31, 2013. The (2) Company believes that disclosing quarterly revenue growth without the     impact of foreign currencies on service revenue is a useful measure of     revenue growth. Service revenue, as adjusted, is an integral part of the     internal reporting and planning system used by management as a supplement     to GAAP financial information.  Net debt to trailing 12 months EBITDA, as adjusted, ratio  Under Cogent's return of capital program Cogent plans on returning an additional at least $10.5 million to its shareholders each quarter through either stock buybacks or a special dividend or a combination of stock buybacks and a special dividend. The aggregate payment under this program will total at least $10.5 million each quarter and this amount is in addition to Cogent's regular quarterly dividend payments. The program is planned to continue until Cogent's net debt to trailing twelve months EBITDA, as adjusted, ratio reaches 2.50.Cogent's net debt to trailing twelve months EBITDA, as adjusted, ratio was 1.57 at December 31, 2013 and 1.86 at March 31, 2014 as shown below.    ($ in 000's) – unaudited          As of December 31, 2013 As of March 31, 2014 Cash and cash equivalents         $304,866                $263,747 Debt Capital leases – current portion  $9,252                  $8,121 Convertible notes – par value     $91,978                 $91,978 Capital leases – long term        $152,527                $154,233 Senior secured notes – par value  $240,000                $240,000 Total debt                        $493,757                $494,332 Total net debt                    $188,891                $230,585 Trailing 12 months EBITDA, as     $120,188                $124,006 adjusted Total net debt to trailing 12 months                            1.57                    1.86  EBITDA, as adjusted    Cogent's SEC filings are available online via the Investor Relations section of www.cogentco.com or on the Securities and Exchange Commission's website at www.sec.gov.      COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2014 AND DECEMBER 31, 2013 (IN THOUSANDS, EXCEPT SHARE DATA)                                                March31,       December31,                                                2014            2013                                                (Unaudited) Assets Current assets: Cash and cash equivalents                      $    263,747    $    304,866 Accounts receivable, net of allowance for doubtful accounts of $2,192 and $1,871,        33,126          30,628 respectively Prepaid expenses and other current assets      23,781          18,777 Total current assets                           320,654         354,271 Property and equipment, net                    346,185         341,193 Deferred tax assets - noncurrent               49,710          50,861 Deposits and other assets - $448 and $448      8,698           8,776 restricted, respectively Total assets                                   $    725,247    $    755,101 Liabilities and stockholders' equity Current liabilities: Accounts payable                               $    16,441     $    14,098 Accrued liabilities                            27,221          31,465 Convertible senior notes – current portion, net of discount of $1,414 and $3,099,          90,564          88,879 respectively Current maturities, capital lease obligations  8,121           9,252 Total current liabilities                      142,347         143,694 Senior secured notes including premium of      245,131         245,423 $5,131 and $5,423, respectively Capital lease obligations, net of current      154,233         152,527 maturities Other long term liabilities                    20,536          19,965 Total liabilities                              562,247         561,609 Commitments and contingencies: Stockholders' equity: Common stock, $0.001 par value; 75,000,000 shares authorized; 46,951,593 and 47,334,218   47              47 shares issued and outstanding, respectively Additional paid-in capital                     496,453         508,256 Accumulated other comprehensive income         1,674           2,136 Accumulated deficit                            (335,174)       (316,947) Total stockholders' equity                     163,000         193,492 Total liabilities and stockholders' equity     $    725,247    $    755,101 COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND MARCH 31, 2013 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)                                                ThreeMonths    ThreeMonths                                                Ended           Ended                                                March31,2014  March31,2013                                                (Unaudited)     (Unaudited) Service revenue                                $    92,937     $    84,553 Operating expenses: Network operations (including $113 and $155 of equity-based compensation  expense, respectively, exclusive of         38,836          37,309 depreciation and amortization shown  separately below) Selling, general, and administrative (including $1,893 and $2,359 of equity-based   26,285          21,465  compensation expense, respectively) Gains on equipment                             (2,295)         - Depreciation and amortization                  17,204          15,874 Total operating expenses                       80,030          74,648 Operating income                               12,907          9,905 Interest income and other, net                 137             658 Interest expense                               (11,303)        (9,869) Income before income taxes                     1,741           694 Income tax (provision) benefit                 (1,616)         (333) Net income                                     $    125        $    361 Comprehensive income (loss): Net income                                     $    125        $    361 Foreign currency translation adjustment        (462)           (1,793) Comprehensive income (loss)                    $    (337)      $    (1,432) Net income per common share: Basic and diluted net income per common share  $    0.00       $    0.01 Dividends declared per common share            $    0.39       $    0.12 Weighted-average common shares - basic         46,409,735      45,537,607 Weighted-average common shares - diluted       46,907,360      46,435,677 COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND MARCH 31, 2013 (IN THOUSANDS)                                                Threemonths    Threemonths                                                Ended           Ended                                                March31,2014  March31,2013                                                (Unaudited)     (Unaudited) Cashflowsfromoperatingactivities: Net income                                     $    125        $    361 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization                  17,204          15,874 Amortization of debt discount and premium      1,415           1,580 Equity-based compensation expense (net of      2,006           2,514 amounts capitalized) Gains—dispositions of assets and other, net    (2,258)         135 Deferred income taxes                          1,229           59 Changes in operating assets and liabilities: Accounts receivable                            (2,554)         (3,175) Prepaid expenses and other current assets      (5,143)         (2,724) Deposits and other assets                      78              24 Accounts payable, accrued liabilities and      (1,466)         314 other long-term liabilities Net cash provided by operating activities      10,636          14,962 Cash flows from investing activities: Purchases of property and equipment            (15,623)        (16,316) Proceeds from dispositions of assets           27              2 Net cash used in investing activities          (15,596)        (16,314) Cash flows from financing activities: Dividends paid                                 (18,352)        (5,489) Purchases of common stock                      (14,196)        - Proceeds from exercises of stock options       155             215 Principal payments of capital lease            (3,379)         (4,964) obligations Net cash used in financing activities          (35,772)        (10,238) Effect of exchange rates changes on cash       (387)           (735) Net decrease in cash and cash equivalents      (41,119)        (12,325) Cash and cash equivalents, beginning of        304,866         247,285 period Cash and cash equivalents, end of period       $    263,747    $    234,960 Supplemental disclosure of non-cash investing and financing activities: Non-cash component of network equipment        $    2,235      $    - obtained in exchange transactions Capital lease obligations incurred             $    4,224      $    18,842      Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including future economic instability in the global economy or a contraction of the capital markets which could affect spending on Internet services and our ability to engage in financing activities; the impact of changing foreign exchange rates (in particular the Euro to USD and Canadian dollar to USD exchange rates) on the translation of our non-USD denominated revenues, expenses, assets and liabilities; legal and operational difficulties in new markets; the imposition of a requirement that we contribute to the U.S. Universal Service Fund and similar funds in other countries; changes in government policy and/or regulation, including net neutrality rules by the United States Federal Communications Commission and in the area of data protection; increasing competition leading to lower prices for our services; our ability to attract new customers and to increase and maintain the volume of traffic on our network; the ability to maintain our Internet peering arrangements on favorable terms; our reliance on an equipment vendor, Cisco Systems Inc., and the potential for hardware or software problems associated with such equipment; the dependence of our network on the quality and dependability of third-party fiber providers; our ability to retain certain customers that comprise a significant portion of our revenue base; the management of network failures and/or disruptions; and outcomes in litigation as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our annual report on Form 10-K for the fiscal year ended December 31, 2013 and our quarterly report on Form 10-Q for the quarter ended March 31, 2014 to be filed with the Securities and Exchange Commission. Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.  Logo - http://photos.prnewswire.com/prnh/20020204/DCM032LOGO    SOURCE Cogent Communications Group, Inc.  Website: http://www.cogentco.com Contact: Cogent Contacts: For Public Relations: Travis Wachter, + 1 (202) 295-4217, twachter@cogentco.com or For Investor Relations: John Chang, + 1 (202) 295-4212, investor.relations@cogentco.com  
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