Cbeyond beats Wall Street Q1 estimates

IT and communications service provider Cbeyond (NASDAQ:CBEY) today reported revenues of $119 million, up nearly 8 percent from a year ago, just beating Wall Street estimates that had expected the company to report income of $118 million; earnings essentially were flat, with Cbeyond reporting a loss of 0.1 million, compared to $1 million a year ago. Earning per share was $0.00, better than estimated losses per share of 4 cents.

The company has aggressively moved into cloud services, with CEO Jim Geiger commenting that the company expected to see strong growth in that segment for the remainder of the year.

"We were pleased with our results in the first quarter and believe that they demonstrate that we are on track to achieve our goals for 2011," said Geiger. "Within our Core Managed Services business we showed improvement in both revenue and adjusted EBITDA. Also, we made solid progress ramping up our newly acquired Cloud Services division and expect rapid growth of this division throughout the remainder of the year."

For more:
- see this release

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