Covad Rises on Solid Quarter

Guidance is in line.
Author:
Publish date:

Covad (DVW) rose 5% late Thursday after posting first-quarter results that were in line with expectations.

The San Jose, Calif., DSL specialist had a net loss of $9.3 million, or 3 cents a share, on sales of $117.8 million in the first quarter. Those numbers compare with a loss of $17.9 million, or 7 cents a share, on $107.7 million in the prior quarter, which ended in December.

Analysts were looking for a net loss of 5 cents a share on $116.7 million in revenue for the first quarter, according to Reuters Research.

"We remain fully focused on executing our strategy and achieving our financial objectives," CEO Charlie Hoffman said in a press release Thursday.

Covad says it had positive cash flow of $2.1 million before interest, taxes, depreciation and amortization, or EBITDA. That is a $5.5 million swing from the prior quarter, when the company had negative EBITDA of $3.4 million.

Looking ahead, the company expects to post a net loss of $8.25 million, but generate EBITDA of about $3 million on sales of about $119.35 million in the current quarter ending in June. Analysts are looking for sales of $119 million.

Covad shares rose 8 cents in regular trading, and jumped another 17 cents to $2.74 in the post-close session.