Switch & Data Facilities Company, Inc. swings to profit, upgrades guidance
Shares of Switch & Data Facilities Company, Inc. (Nasdaq:SDXC) got a boost this morning in pre-market trading after the provider of Internet exchange and colocation services reported it swung to a profit for the second quarter and upgraded guidance last night.
For the three months ended June 30, the Tampa, Fla.-based company recorded net income of $2 million, or $0.06 per share, compared with a net loss of $3.5 million, or $0.06 per share for the second quarter last year. Eight analysts polled by Thomson Financial were on average expecting earnings of $0.05 per share.
Total revenues increased 22% to $33.3 million from $27.3 million in the same quarter in 2006. Six analysts polled by Thomson Financial were on average expecting revenues of $33.38 million.
Switch & Data also upgraded its financial guidance for 2007. The company said it expects total revenues to be $135 million and adjusted EBITDA to be $42 million. This compares with previously given guidance for revenues of $127 million and adjusted EBITDA of $40 million. Eight analysts polled by Thomson Financial were on average expecting revenues of $130.80 million.
The company further said that since it has outperformed its plan, it is increasing capital expenditures for the current year in order to accelerate product capacity. Switch & Data now expects capital expenditures for 2007 of between $37 million and $39 million.
Shares of Switch & Data climbed $2.03, or 12.71%, to $18.00 in pre-market trading.
