WASHINGTON -- Cogent Communications Group, Inc. (NASDAQ:CCOI) today announced net service revenue of $45.1 million for the three months ended June 30, 2007, compared with $36.2 million for the three months ended June 30, 2006. On-net revenue was $35.3 million for the three months ended June 30, 2007, an increase of 40.4% over $25.1 million for the three months ended June 30, 2006. On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent-owned facilities. Off-net revenue was $7.9 million for the three months ended June 30, 2007, a decrease of 7.5% from $8.6 million for the three months ended June 30, 2006. Off-net customers are located in buildings directly connected to Cogent's network using other carriers'facilities to provide the last mile portion of the link from the customers'premises to Cogent's network. Non-core revenue was $1.9 million for the three months ended June 30, 2007, a decrease of 22.8% from $2.4 million for the three months ended June 30, 2006. Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.

Gross profit, excluding equity-based compensation expense, increased 47.3% from $16.1 million for the three months ended June 30, 2006 to $23.7 million for the three months ended June 30, 2007. Gross profit margin, excluding equity-based compensation expense, expanded from 44.5% for the three months ended June 30, 2006 to 52.5% for the three months ended June 30, 2007.

Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $11.1 million for the three months ended June 30, 2007, an increase of 146.5%, over $4.5 million for the three months ended June 30, 2006.

Basic and diluted net loss applicable to common stock was $(0.19) per share for the three months ended June 30, 2007 compared to $(0.34) per share for the three months ended June 30, 2006. Weighted average common shares outstanding -- basic and diluted -- were 48.4 million for the three months ended June 30, 2007 as compared to 45.1 million for the three months ended June 30, 2006.

Cogent Communications Holdings Inc. (Nasdaq: CCOI)