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Summary:

High Speed Internet is hot. So hot, that Covad, the wholesale DSL provider managed to become profitable ahead of its own internal plans. Not bad for a company that was a Chapter 11 bankruptcy case a couple of years ago. This morning, the company announced its […]

High Speed Internet is hot. So hot, that Covad, the wholesale DSL provider managed to become profitable ahead of its own internal plans. Not bad for a company that was a Chapter 11 bankruptcy case a couple of years ago. This morning, the company announced its fourth quarter results.

bq. Broadband provider Covad Communications Group Inc., of San Jose, says it lost $99.9 million, or 44 cents per share, on revenue of $288.9 million in 2003. That compares with a net loss of $184.8 million on revenue of $383.5 million in 2002. The company claims it achieved a pro forma profit in the fourth quarter.

“Achieving EBITDA profitability one quarter ahead of plan is a major accomplishment for our company, our employees and our shareholders,” said Charles Hoffman, president and chief executive officer of Covad. “In just two years we have elevated Covad out of bankruptcy and into EBITDA profitability, and we remain on track to become cash-flow positive in mid-year 2004.”

By Om Malik

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  1. Didn’t he say LAST year they’d be cash flow positive by the second half of THIS year?

    That stock sure doesn’t want to move anywhere….

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  2. yes that’s what he said, and he is saying exactly the same thing here as well. i think the stock has all the good news priced in and there is very little room to grow. look what is important is that they are sticking to their knitting and executing. which is frankly something they never did before Charlie came around

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