Thursday, AboveNet Inc. (ABVT), a provider of high-bandwidth connectivity solutions, reported that its profit for the third-quarter increased sharply from the previous year quarter as revenues increased 12.5% from last year driven mainly by domestic metro services.
AboveNet recorded third-quarter net income of $22.7 million or $0.88 per share from $10.4 million or $0.42 per share last year.
On average, four analysts polled by Thomson Reuters expected the company to report profit of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue increased 12.5% to $92.4 million from $82.1 million last year. Analysts expected revenue of $88.79 million for the quarter.
Revenue from domestic operations was $83.6 million, an increase of 13.3% from last year. Revenue from domestic metro services totaled $24.8 million, up 40.9% from the prior year period. Revenue from domestic fiber infrastructure services totaled $40.5 million, an increase of 6.6% year over year.
Revenue from foreign operations, primarily in the U.K., increased to $8.8 million from $8.3 million in the prior year period. For the nine months, net income was $74.7 million or $2.96 per share compared with $25.0 million or $1.02 per share for the last year period. Revenue for the nine months were $265.8 million versus $230.1 million for the last year, an increase of 15.5%. Looking ahead, the company raised its outlook for revenue for 2009 to be in the range of $355 million to $360 million from previous range of $350 million to $355 million.
Analysts expect the company to post revenues of $354.76 million for the full year.
Capital expenditures for 2009 is expected to be between $110 million and $120 million, of which $80.0 million is already expended.
ABVT closed Thursday's regular trading at $51.0 up $2.62 or 5.42% on a volume of 0.109 million shares on the NYSE.
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