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.”