2005 Post 200
Cogent Communications Group Inc.
1015 31st St. NW
Washington, D.C. 20007
Post 200 Category: Top 125 Companies
Revenue: $91.29 Million
Net Income/Loss: ($89,660,000.00)
Earnings per share: ($117.43)
Stockholder equity: $212.49 Million
Auditor: Ernst & Young LLP
Assets: $378.59 Million
Market capitalization: $367.72 Million
52-week high: 41 4/14/2004
52-week low: 4.6 7/14/2004
Chairman and CEO: David Schaeffer
President and COO: Reed Harrison
Local employees: 132
Description: Cogent Communications sells high-speed Internet service to small- and medium-size businesses. It owns a fiber-optic network that reaches more than 1,000 large buildings, and it sells its service to clients in those buildings. Through some of the companies it acquired, it now sells security services and wholesale dial-up Internet access.
Developments: Cogent continued its acquisitive streak in 2004, buying nine companies or their assets. It bought LambdaNet Spain, LambdaNet France, part of Carrier1 International, Global Access, Unlimited Fiber Optics, Aleron Broadband Services and, most recently, some of Verio's Internet access customers in December. The company has been acquiring these distressed companies for their network assets and to expand its customer roster. Cogent is not in an easy business. Competition in the business-communications market is still fierce, and the amount businesses are willing to pay for telecommunications continues to fall. But Cogent chief executive David Schaeffer says he embraces the harsh dynamics of the industry and that the company is doing its part to encourage the fall in prices. "There's a reason that we're willing to price at a seventh the price of our competitors," he said. Cogent wants to price its competitors out of the market, then take their customer base. The key for Cogent will be to cut its own costs, then sell to more customers than its competitors, he said. In February, Cogent announced conversion of all of its preferred stock to common stock, then implemented a 1-for-20 reverse stock split.
Chairman and CEO: Dave Schaeffer
Total Cash: $250,000.00
Total Compensation: $6,828,078.00