Cogent Communications Holdings Inc (CCOI) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Cogent Communications Holdings Third Quarter 2023 Earnings Conference Call. As a reminder, this conference call is being recorded, and it will be available for replay at www.cogentco.com. A transcript of this conference call will be posted on Cogent's website when it becomes available. Cogent summary of financial and operational results attached to its press release can be downloaded from the Cogent website. I would now like to turn the call over to Mr. David Schaeffer, Chairman and Chief Executive Officer of Cogent Communications Holdings. Please go ahead.

早安，歡迎參加 Cogent Communications Holdings 2023 年第三季財報電話會議。謹此提醒，本次電話會議正在錄製中，可在 www.cogentco.com 上重播。本次電話會議的記錄一旦發布將發佈在 Cogent 的網站上。其新聞稿所附的令人信服的財務和營運業績摘要可從 Cogent 網站下載。我現在想把電話轉給 Cogent Communications Holdings 董事長兼執行長 David Schaeffer 先生。請繼續。

Thank you, and good morning, everyone. Welcome to our third quarter 2023 earnings call. I'm Dave Schaeffer, Cogent's CEO. With me on this morning's call is Tad Weed, our Chief Financial Officer. Hopefully, you've had a chance to review our earnings press release. Our press release includes a number of historical quarterly metrics, which we present in a consistent manner each quarter.

謝謝大家，大家早安。歡迎參加我們的 2023 年第三季財報電話會議。我是戴夫·謝弗 (Dave Schaeffer)，Cogent 的首席執行官。與我一起參加今天早上電話會議的是我們的財務長泰德威德 (Tad Weed)。希望您有機會閱讀我們的收益新聞稿。我們的新聞稿包括許多歷史季度指標，我們每季都會以一致的方式呈現這些指標。

Now for a few comments on our results. We closed our acquisition of the Sprint business on May 1, 2023. This transaction significantly expanded our network, our customer base and materially increase the scope and scale of our business. Our annualized revenue run rate now exceeds $1 billion. We acquired a number of large enterprise customers, many of which are Fortune 500 companies. Customers that are typically larger than our typical Cogent corporate customer base. We acquired significant owned fiber optic routes and facilities. We acquired numerous right-of-way and relationships with the underlying land owners, which represent over tens of thousands of route miles of dark fiber.

現在對我們的結果發表一些評論。我們於 2023 年 5 月 1 日完成了對 Sprint 業務的收購。這項交易顯著擴大了我們的網路和客戶群，並大幅擴大了我們的業務範圍和規模。我們的年化收入運行率現已超過 10 億美元。我們獲得了一批大型企業客戶，其中不乏世界500強企業。通常比我們典型的 Cogent 企業客戶群更大的客戶。我們收購了重要的自有光纖線路和設施。我們獲得了大量的通行權以及與底層土地所有者的關係，這些代表著超過數萬英里的暗光纖路線。

These assets and relationships would be virtually impossible for us to assemble on our own. We hired many valuable experienced Sprint business employees. Many of the Sprint business employees had an average tenure with the company of 22 years prior to the acquisition. We acquired a network with an appraised value of over $1 billion for $1. We will receive a total of $700 million from T-Mobile to offset operating losses for serving enterprise customers and for providing T-Mobile IP transit services, $350 million in the first year or $29.2 million in monthly installments. And then $350 million over the next 42 months for a monthly installment of $8.3 million per month.

這些資產和關係對我們來說幾乎不可能靠自己來組裝。我們聘請了許多有價值、經驗豐富的 Sprint 業務員工。收購前，許多 Sprint 業務員工在公司的平均任期為 22 年。我們以 1 美元收購了一個評估價值超過 10 億美元的網路。我們將從 T-Mobile 獲得總計 7 億美元的資金，用於抵銷服務企業客戶和提供 T-Mobile IP 傳輸服務的營運損失，第一年為 3.5 億美元，每月分期付款為 2,920 萬美元。然後在接下來的 42 個月內支付 3.5 億美元，每月分期付款 830 萬美元。

We are very optimistic about the cash flow generating capabilities of the combined operation. Our recent results show we achieved immediate and substantial savings in many areas, many of which exceeded our initial expectations. We anticipate additional substantial cost savings from our current run rates in many areas. As we had mentioned in our last earnings call, we have combined the Cogent classic legacy business and the Sprint business operations. As a result, we will no longer be reporting separate metrics. The combined Cogent business had a very good quarter. Our total revenues were $275.4 million. Our operations from the quarter include a full quarter of the Sprint business versus 2 months as reported in Q2.

我們對合併後的現金流產生能力非常樂觀。我們最近的結果表明，我們在許多領域立即實現了大量節省，其中許多超出了我們最初的預期。我們預計，在許多領域，我們目前的運行率將進一步節省大量成本。正如我們在上次財報電話會議中提到的，我們將 Cogent 經典遺留業務和 Sprint 業務運營合併起來。因此，我們將不再報告單獨的指標。合併後的 Cogent 業務季度表現非常出色。我們的總收入為 2.754 億美元。我們本季的業務包括整個季度的 Sprint 業務，而第二季報告的業務為兩個月。

Our EBITDA as adjusted was $131.4 million, an increase by $77.4 million from Q2 of 2023. Our EBITDA adjusted margin was a record at 47.7%, a significant increase from the EBITDA adjusted margin last quarter of 25.2%. We received 3 payments totaling $87.5 million under the transit services agreement from T-Mobile in the quarter versus only 1 IP transit service payment of $29.2 million in Q2. Our gross debt to trailing 12 months EBITDA is adjusted and our net debt ratio, both significantly improved in the quarter. Our total gross debt to trailing 12 months EBITDA as adjusted ratio was 4.56 at the end of the quarter and our net debt ratio at the end of the quarter was 4.24.

我們調整後的 EBITDA 為 1.314 億美元，比 2023 年第二季增加了 7,740 萬美元。我們的 EBITDA 調整後利潤率創歷史新高，達到 47.7%，比上季度 EBITDA 調整後利潤率 25.2% 大幅增長。本季度，根據 T-Mobile 的傳輸服務協議，我們收到了 3 筆總計 8,750 萬美元的付款，而第二季度僅收到 1 筆 IP 傳輸服務付款，金額為 2,920 萬美元。我們的總債務與過去 12 個月 EBITDA 比率進行了調整，我們的淨債務比率在本季度均顯著改善。本季末，我們的總負債與過去 12 個月 EBITDA 的調整後比率為 4.56，本季末的淨負債比率為 4.24。

This is compared to a gross debt of 5.63x in Q2 and a net debt of 4.79. We anticipate further improvements in these leverage levels over the next several quarters. Our network traffic increased sequentially by 6% and was up 26% year-over-year. This traffic growth acceleration was better than the 4% sequential growth rate we had seen in Q2 and the 21% year-over-year traffic growth. We have begun to realize synergies. And over the next 3 years, we will continue to anticipate achieving annual savings of $180 million annually from the Sprint North American network, $25 million from the Sprint International wireline network and a $50 million reduction in O&M expenses for Cogent's North American network. We anticipate achieving additional SG&A savings and other cost of revenue synergies over the next several years. Our recent progress in achieving these savings is very encouraging. And in fact, exceeded our initial targets on savings. Our total revenue for the quarter increased sequentially by 14.9% to $275.4 million and increased by 83.6% on a year-over-year basis. Our rep productivity at 9.2 last quarter and 3.6 this quarter for full-time equivalents. This number included the full-time equivalent productivity because of the 9,000 commercial services orders sold to T-Mobile under our commercial services contract.

相比之下，第二季的總債務為 5.63 倍，淨債務為 4.79 倍。我們預計未來幾季這些槓桿水平將進一步改善。我們的網路流量較上季成長 6%，較去年同期成長 26%。這種流量成長加速優於我們在第二季度看到的 4% 的環比成長率和 21% 的同比流量成長。我們已經開始實現協同效應。在未來 3 年中，我們將繼續預期 Sprint 北美網路每年可節省 1.8 億美元，Sprint International 有線電視網路每年可節省 2,500 萬美元，Cogent 北美網路的營運和維護費用將減少 5,000 萬美元。我們預計在未來幾年內將實現額外的銷售管理費用節省和其他收入成本綜效。我們最近在實現這些節約方面取得的進展非常令人鼓舞。事實上，超出了我們最初的節省目標。我們本季的總營收季增 14.9%，達到 2.754 億美元，年增 83.6%。上季我們的全職代表生產力為 9.2，本季為 3.6。該數字包括根據我們的商業服務合約向 T-Mobile 出售的 9,000 個商業服務訂單的全職等效生產力。

This commercial service contract with T-Mobile is in addition to our $700 million IP transit contract. Our rep productivity results also included the impact of the enterprise customer sales reps that we had acquired from Sprint, which were now counted as full-time equivalents and are continuing to receive training on Cogent's products and are not yet fully productive. In connection with the Sprint acquisition, we hired a total of 942 employees. During the quarter, our total sales reps actually decreased by 10 or 1.5%. We ended the quarter with 637 sales reps and 621 full-time equivalents, a 9.5% increase in full-time equivalent reps primarily due to the reps that were hired from the Sprint business now being counted as full-time equivalents. Now for a comment on our optical transport services or wavelength businesses. In connection with our acquisition of the Sprint business, we've expanded our offerings of optical wavelength services and optical transport network to utilize the Sprint outlook. We are selling these wavelength services to existing customers acquired customers from Sprint and to new customers. The customers require dedicated optical transport without the capital and ongoing expenses of owning their own infrastructure and network. Our wavelength revenue for the quarter was $3 million, and there were 449 wavelength customer connections at quarter end.

與 T-Mobile 簽訂的這份商業服務合約是對我們價值 7 億美元的 IP 傳輸合約的補充。我們的代表生產力結果還包括我們從 Sprint 收購的企業客戶銷售代表的影響，這些代表現在被視為全職員工，並且正在繼續接受 Cogent 產品的培訓，但尚未完全發揮生產力。在收購 Sprint 期間，我們總共僱用了 942 名員工。本季度，我們的銷售代表總數實際上減少了​​ 10% 或 1.5%。截至本季末，我們有 637 名銷售代表和 621 名全職等效代表，全職等效代表增加了 9.5%，主要是因為從 Sprint 業務僱用的銷售代表現在被計為全職等效代表。現在對我們的光傳輸服務或波長業務進行評論。透過收購 Sprint 業務，我們擴大了光波長服務和光傳輸網路的產品範圍，以利用 Sprint 的前景。我們正在向從 Sprint 獲得的現有客戶和新客戶銷售這些波長服務。客戶需要專用的光傳輸，而無需擁有自己的基礎設施和網路的資本和持續費用。本季我們的波長收入為 300 萬美元，季度末有 449 個波長客戶連線。

We have sold wavelengths in a total of 50 locations with shorter provisioning cycles. We have connectivity and wavelength sales capabilities in over 250 locations but with longer provisioning cycles. In approximately 14 months, we expect to be able to offer wavelengths in over 800 carrier-neutral data center locations in the U.S. with more rapid provisioning cycles. Our Sprint acquisition materially expanded our network footprint. We added 18,905 miles of route miles of intercity owned fiber, 12,570 route miles of metropolitan-owned fiber network. We added approximately 11,400 route miles of intercity IRU fiber and approximately 4,500 metro route miles of IRU fiber to the Cogent network. Most of this is redundant and will be eliminated as part of our cost-saving measures. We eliminated approximately 430 redundant fiber route miles that were leased in the quarter. We will reconfigure 45 of the acquired Sprint facilities into data centers and add those to the 1,528 carrier-neutral data centers that we operate in and the 60 proprietary Cogent data centers. To date, we have converted all of the acquired Sprint facilities into Cogent data centers. Now for a comment on our dividend program.

我們已在總共 50 個地點銷售波長，且配置週期更短。我們在 250 多個地點擁有連接和波長銷售能力，但供應週期更長。在大約 14 個月內，我們預計能夠以更快的配置週期在美國 800 多個運營商中立的資料中心位置提供波長。我們對 Sprint 的收購極大地擴大了我們的網路覆蓋範圍。我們增加了 18,905 英里的城際自有光纖路由里程，12,570 英里的大都會自有光纖網路路由里程。我們為 Cogent 網路添加了約 11,400 英里的城際 IRU 光纖和約 4,500 英里的城域 IRU 光纖。其中大部分都是多餘的，並將作為我們節省成本措施的一部分予以消除。我們消除了本季租賃的約 430 英里冗餘光纖路由。我們將把收購的 Sprint 設施中的 45 個重新配置為資料中心，並將這些設施添加到我們營運的 1,528 個營運商中立資料中心和 60 個專有 Cogent 資料中心中。迄今為止，我們已將所有收購的 Sprint 設施轉變為 Cogent 資料中心。現在對我們的股息計劃發表評論。

During the quarter, we returned $45.1 million to our shareholders for our regular dividend. Our Board of Directors, which reflects on our strong cash flow generating capability and investment opportunities, including the Sprint acquisition, decided to increase our quarterly dividend yet again by an additional $0.01 per share sequentially, raising our dividend quarterly from $0.945 per share to $0.955 per share. This represents the 45th consecutive sequential increase in our regular quarterly dividend and a 4.4% annual growth rate in our dividend. Now for a comment on our future guidance and expectations.

本季度，我們向股東返還 4,510 萬美元的定期股息。我們的董事會考慮到我們強大的現金流產生能力和投資機會（包括收購 Sprint），決定將季度股息再次增加每股 0.01 美元，將季度股息從每股 0.945 美元提高到每股 0.955 美元。分享。這代表我們的定期季度股利連續第 45 次連續增加，股利年增率為 4.4%。現在對我們未來的指導和期望發表評論。

Now that we have combined the Sprint business with the Cogent business, we anticipate long-term average revenue growth of between 5% and 7% per year and EBITDA margin expansion of approximately a 100 basis points per year. Our revenue and EBITDA guidance were intended to be multiyear goals and are not intended to be used specific quarterly or annual guidance. Our EBITDA as adjusted and our leverage ratios were impacted by the $700 million IP transit services agreement that we have entered into with T-Mobile. Beginning in May of '24, these payments will be reduced from $29.2 million per month to $8.3 million. That reduction will impact future EBITDA as adjusted, and our leverage ratios beginning in the second quarter of 2024. However, these metrics are measured on a trailing 12-month basis. Now I'd like to ask Tad to read our safe harbor language and provide some additional operating performance metrics for the quarter. Following our remarks, we will open the floor for questions and answers.

現在，我們已將 Sprint 業務與 Cogent 業務合併，我們預計長期平均收入每年增長 5% 至 7%，EBITDA 利潤率每年增長約 100 個基點。我們的收入和 EBITDA 指導旨在作為多年目標，而不是用於特定的季度或年度指導。我們調整後的 EBITDA 和槓桿率受到我們與 T-Mobile 簽訂的價值 7 億美元的 IP 傳輸服務協議的影響。從 2024 年 5 月開始，這些付款將從每月 2,920 萬美元減少到 830 萬美元。這項減少將影響調整後的未來 EBITDA 以及我們從 2024 年第二季開始的槓桿率。但是，這些指標是在過去 12 個月的基礎上衡量的。現在我想請泰德閱讀我們的安全港語言並提供本季的一些額外營運績效指標。發言結束後，我們將開始提問和回答。

Thank you, Dave, and good morning to everyone. This earnings conference call includes forward-looking statements. These forward-looking statements are based upon our current intent, belief and expectations. These forward-looking statements and all other statements that may be made on this call that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Please refer to our SEC filings for more information on the factors that could cause actual results to differ. Cogent undertakes no obligation to update or revise our forward-looking statements. If we use non-GAAP financial measures during this call, you will find these reconciled to the corresponding GAAP measurement in our earnings releases that are posted on our website at cogentco.com. We analyze our revenues based upon network connection type, which is on-net, off-net, wavelength services and noncore services. And we also analyze our revenues based upon customer type.

謝謝你，戴夫，祝大家早安。本次收益電話會議包含前瞻性陳述。這些前瞻性陳述是基於我們目前的意圖、信念和期望。這些前瞻性陳述以及本次電話會議中可能做出的所有其他非歷史事實的陳述均受到許多風險和不確定性的影響，實際結果可能存在重大差異。請參閱我們向 SEC 提交的文件，以了解有關可能導致實際結果不同的因素的更多資​​訊。 Cogent 不承擔更新或修改我們的前瞻性聲明的義務。如果我們在本次電話會議中使用非 GAAP 財務指標，您會發現這些指標與我們網站 cogentco.com 上發布的收益發布中相應的 GAAP 指標一致。我們根據網路連線類型（網內、網外、波長服務和非核心服務）分析我們的收入。我們也根據客戶類型分析我們的收入。

We classify all of our customers into 3 types: NetCentric customers, corporate customers and enterprise customers. Our corporate customers buy bandwidth from us in large multi-tenant office buildings or in carrier-neutral data centers. These corporate customers are typically professional services firms financial services firms and educational institutions located in multi-tenant office buildings, connecting to our network through or connecting to our network through our carrier-neutral data center footprint.

我們將所有客戶分為三類：NetCentric 客戶、企業客戶和企業客戶。我們的企業客戶向我們購買大型多租戶辦公大樓或營運商中立資料中心的頻寬。這些企業客戶通常是位於多租戶辦公大樓的專業服務公司、金融服務公司和教育機構，透過我們的營運商中立資料中心足跡連接到我們的網路或透過我們的網路連接。

Our NetCentric customers buy significant amounts of bandwidth from us and carrier-neutral data centers and include streaming companies and content distribution service providers as well as access networks who serve consumer and business customers. Our corporate and enterprise customers generally purchase our services based on a price per location and our NetCentric customers purchase our services based upon price per megabit. Comments on the corporate business. Our corporate business continues to be influenced by real estate activity in central business districts, 2 key statistics, including the level of card swipes and buildings and leasing activity indicate that year-to-date, the real estate market and leasing activity and central business districts where we operate has seen some continuing improvement in certain areas of the country, but has not returned to pre-pandemic levels in most geographic regions.

我們的 NetCentric 客戶從我們和營運商中立的資料中心購買大量頻寬，其中包括串流媒體公司和內容分發服務提供商以及為消費者和企業客戶提供服務的存取網路。我們的公司和企業客戶通常會根據每個位置的價格購買我們的服務，而我們的 NetCentric 客戶則根據每兆位元的價格購買我們的服務。對公司業務的評論。我們的企業業務繼續受到中央商務區房地產活動的影響，包括刷卡水平和建築物和租賃活動在內的兩項關鍵統計數據表明，今年迄今為止，房地產市場和租賃活動以及中央商務區在我們開展業務的地區，該國某些地區的情況持續改善，但大多數地理區域尚未恢復到大流行前的水平。

We continue to remain cautious in our outlook for our corporate revenues given the uncertain economic environment and other challenges from the lingering effects of the pandemic. Our corporate business represented 43.7% of our revenues for the quarter, and our quarterly corporate revenue increased year-over-year by 40.9% to $120.5 million from last year and increased sequentially by 8.5%. We had 5,000 -- 55,045 corporate customer connections on our network at quarter end, this was a sequential decrease of 10.2% and a year-over-year increase of 29.8%. The sequential net decrease in corporate customer connections primarily resulted from the elimination of a noncore product for corporate customers. During the quarter, we eliminated 8,486-session initiation protocol or SIP noncore customer connections, of which 5,006 of these 8,400 were noncore corporate customer connections. Excluding the impact of the SIP corporate customer connections that reached end of life, our corporate customer connections decreased by 1,200 connections or by 2.2% from last quarter and that was also due to some other noncore products being end of life. For the quarter, the sequential impact of USF on our corporate revenues was a positive $3.5 million and a positive year-over-year impact of $10.4 million.

鑑於經濟環境的不確定性以及疫情持續影響帶來的其他挑戰，我們對企業收入的前景持續保持謹慎。我們的企業業務佔本季營收的 43.7%，季企業營收較去年同期成長 40.9%，達到 1.205 億美元，季增 8.5%。截至季末，我們的網路上有 5,000 至 55,045 個企業客戶連接，季減 10.2%，年增 29.8%。企業客戶連線環比淨減少主要是由於取消了企業客戶的非核心產品。本季度，我們消除了 8,486 個會話啟動協定或 SIP 非核心客戶連接，其中 8,400 個中的 5,006 個是非核心企業客戶連接。剔除SIP企業客戶連線生命週期終止的影響，我們的企業客戶連線數較上季減少1,200個連接，即2.2%，這也是由於其他一些非核心產品生命週期終止所致。本季度，USF 對我們公司營收的連續影響為 350 萬美元，年比影響為 1,040 萬美元。

Some comments on the NetCentric business. Our NetCentric business continues to benefit from continued growth in video traffic and streaming. For the quarter, our network traffic growth accelerated and was up by 6% sequentially and 26% year-over-year. Our NetCentric business represented 34.5% of our revenues for the quarter and grew sequentially by 8.4% to $94.9 million and grew by 47.2% year-over-year. We had 62,291 NetCentric customer connections on our network at quarter end. That was a sequential decrease of 6.6% and a year-over-year increase of 21.8%. Explaining the sequential decrease included in our NetCentric customer connections at the end of last quarter or 8,028 NetCentric customer connections under the commercial services agreement with T-Mobile that Dave mentioned earlier, and 1,088 of the SIP customer connections, that product that reached end of life. At the end of the quarter, there were 4,661 NetCentric customer connections under the commercial services agreement with T-Mobile. If you exclude the impact of both these NetCentric customer connections under the T-Mobile commercial services agreement, and the SIP product that reached end of life from both periods, our NetCentric customer connections increased sequentially by 35 connections. Our enterprise business was 21.8% of our revenues for the quarter.

對 NetCentric 業務的一些評論。我們的 NetCentric 業務持續受益於視訊流量和串流媒體的持續成長。本季度，我們的網路流量成長加速，季增 6%，年增 26%。我們的 NetCentric 業務佔本季營收的 34.5%，季增 8.4%，達到 9,490 萬美元，年增 47.2%。截至季末，我們的網路上有 62,291 個 NetCentric 客戶連線。環比下降 6.6%，年增 21.8%。解釋了上季度末NetCentric 客戶連接的環比下降，即Dave 之前提到的與T-Mobile 簽訂的商業服務協議下的NetCentric 客戶連接數為8,028 個，以及SIP 客戶連接數為1,088 個，該產品已達到生命週期終點。截至本季末，根據與 T-Mobile 簽訂的商業服務協議，NetCentric 客戶連線數量為 4,661 個。如果排除 T-Mobile 商業服務協議下的這些 NetCentric 客戶連線以及兩個時期都已終止生命的 SIP 產品的影響，我們的 NetCentric 客戶連線將連續增加 35 個連線。我們的企業業務佔本季營收的 21.8%。

We had 20,689 enterprise customer connections at the end of Q3. There were 3,392 SIP enterprise connections at the end of last quarter that reached our end-of-life term this quarter. Again, all -- there all the SIP connections were canceled during the quarter, whether they were corporate, NetCentric or enterprise and all of that product was noncore. Revenue and customer connections by network type on-net revenue. Our on-net revenue was $130 million for the quarter. That was a sequential increase of 1.9% and year-over-year 14.9%. Our on-net customer connections were 89,623 at the end of the quarter. We serve our on-net customers in 3,257 in total on-net multi-tenant office and carrier-neutral data center buildings. We continue to succeed in selling larger 100 gigabit connections and 400 gigabit connections carrier-neutral data centers and selling 10-gig gigabit connections and select multi-tenant office buildings. Selling these larger connections has the impact increasing our year-over-year on-net ARPU. Off-net revenue. Our off-net revenue was $131 million for the quarter, a sequential increase of 28.4% and year-over-year increase of 257.7%, including our new off-net locations from the Sprint business, we now serve off-net customers in over 27,800 off-net buildings. These off-net buildings are primarily located in North America.

截至第三季末，我們擁有 20,689 個企業客戶連線。截至上季末，有 3,392 個 SIP 企業連線已在本季到期。同樣，本季所有 SIP 連線都被取消，無論是企業、NetCentric 還是企業，而且所有這些產品都是非核心產品。按網路類型劃分的收入和客戶連接網路收入。本季我們的線上收入為 1.3 億美元。季增 1.9%，年增 14.9%。截至本季末，我們的線上客戶連線數為 89,623。我們為 3,257 個網路客戶提供網路多租戶辦公室和營運商中立資料中心建築的服務。我們繼續成功銷售更大的 100 GB 連接和 400 GB 連接營運商中立資料中心，以及銷售 10 GB 連接和選定的多租戶辦公大樓。出售這些更大的連接會增加我們的逐年在線 ARPU。網外收入。本季我們的網外營收為 1.31 億美元，季增 28.4%，年增 257.7%，包括我們來自 Sprint 業務的新網外地點，我們現在為超過27,800 座網外建築物。這些網外建築物主要位於北美洲。

Wavelength revenue, our wavelength revenue increased by 88.8% sequentially and was $3 million for the quarter. Our wavelength customer connections were 449 at quarter end. Noncore revenue. Our noncore revenue was $11.4 million for the quarter, noncore customer connections were 11,187 at quarter end. At the end of last quarter, total noncore customer connections, again, including -- included the 8,486 SIP customer connections that reached our end of life this quarter. Comments on pricing. Our average price per megabit for our installed base increased sequentially by 7.7% to $0.30 and also increased year-over-year by 9.6%. Our average price per megabit for our new customer contracts was $0.17 and that was almost a 64% increase over $0.10 from last quarter and the year-over-year price increase of 8.8% of increases all around. Comments on ARPU, our on-net and off-net ARPUs for the quarter decreased sequentially primarily from the impact of the Sprint business ARPUs. However, our year-over-year on-net and off-net ARPUs increased. Our on-net ARPU decreased sequentially by 1.7% to $483 from $483 to $475. And year-over-year, our on-net ARPU increased by 3.8%, and it was 458 last year for the third quarter. Our off-net ARPU decreased sequentially by 10.7% from $1,294 to $1,156. And year-over-year, our net ARPU increased by 25.6%, it was $920 last year for the third quarter.

波長收入，本季我們的波長收入季增 88.8%，達到 300 萬美元。截至季末，我們的波長客戶連線數為 449。非核心收入。本季我們的非核心營收為 1,140 萬美元，季末非核心客戶連線數為 11,187 筆。上季末，非核心客戶連線總數再次包括—包括本季壽命結束的 8,486 個 SIP 客戶連線。定價的評論。我們的安裝基數每兆位元平均價格連續上漲 7.7% 至 0.30 美元，較去年同期上漲 9.6%。新客戶合約的每兆位元平均價格為 0.17 美元，比上季的 0.10 美元上漲了近 64%，年比價格漲幅為 8.8%。對 ARPU 的評論，我們本季的網內和網外 ARPU 環比下降，主要是受到 Sprint 業務 ARPU 的影響。然而，我們的網內和網外 ARPU 年成長。我們的線上 ARPU 環比下降 1.7%，從 483 美元降至 475 美元，降至 483 美元。與去年同期相比，我們的線上 ARPU 成長了 3.8%，去年第三季為 458。我們的網外 ARPU 環比下降 10.7%，從 1,294 美元降至 1,156 美元。與去年同期相比，我們的淨 ARPU 成長了 25.6%，去年第三季為 920 美元。

Churn rates. Our sequential churn rate for our on-net connections for the combined business did increase from the impact of the Sprint business this quarter. Our on-net unit churn rate was 1.8% for the quarter, up from 1.4% last quarter. Our off-net unit churn rate was 1.5% for the quarter, which was a slight decrease from 1.6% last quarter. These on-net and off-net churn rates do not include large number of noncore churn customer connections. On EBITDA, we reconcile our EBITDA to our cash flow from operations in each of our quarterly press releases.

流失率。由於本季 Sprint 業務的影響，合併後業務的線上連線的連續流失率確實有所增加。本季我們的網內單位流失率為 1.8%，高於上季的 1.4%。本季我們的網外單位流失率為 1.5%，比上季的 1.6% 略有下降。這些網內和網外流失率不包括大量非核心流失客戶連線。關於 EBITDA，我們在每份季度新聞稿中將 EBITDA 與營運現金流進行核對。

We incurred $0.4 million of Sprint noncapital acquisition costs this quarter compared to $0.7 million last quarter. Our EBITDA for the quarter increased sequentially by $19.4 million and decreased by $40.3 million year-over-year. Our EBITDA margin increased to 15.8% from 10.1% last quarter. Now on EBITDA as adjusted. Our EBITDA as adjusted, which includes adjustments for Sprint acquisition costs and the cash payments received under our $700 million IP transit services agreement with T-Mobile. We billed and collected $87.5 million under the IP transit services agreement this quarter. Last quarter, we billed $58.4 million and collected $29.2 million under the agreement. All amounts billed under the IP transit services agreement have been paid on time, and as of this call, we have received 2 additional payments.

本季我們產生了 40 萬美元的 Sprint 非資本收購成本，而上季為 70 萬美元。我們本季的 EBITDA 環比增加 1,940 萬美元，比去年同期減少 4,030 萬美元。我們的 EBITDA 利潤率從上季度的 10.1% 增至 15.8%。現在是調整後的 EBITDA。調整後的 EBITDA 包括 Sprint 收購成本的調整以及根據我們與 T-Mobile 簽訂的 7 億美元 IP 傳輸服務協議收到的現金付款。本季我們根據 IP 傳輸服務協議收取了 8,750 萬美元的費用。上季度，我們根據協議收取了 5840 萬美元的費用並收取了 2920 萬美元。根據 IP 傳輸服務協議收取的所有費用均已按時支付，截至本次通話，我們已收到 2 筆額外付款。

Our EBITDA as adjusted for Sprint acquisition costs and cash payments received under the $700 million IP transit services agreement was $131.4 million for the quarter, that was a 47.7% EBITDA as adjusted margin. This EBITDA as adjusted margin as a company record and a substantial increase from 22.5% last quarter, and the increase was from both additional payments under the IP transit services agreement and cost reduction and an increase in revenue. Foreign currency impact.

在根據 Sprint 收購成本和根據 7 億美元 IP 傳輸服務協議收到的現金付款進行調整後，本季的 EBITDA 為 1.314 億美元，調整後利潤率為 47.7% 的 EBITDA。調整後的 EBITDA 利潤率創公司紀錄，較上季度的 22.5% 大幅增長，增長源自 IP 傳輸服務協議項下的額外付款以及成本降低和收入增加。外幣影響。

Our revenue earned outside of the United States is reported in U.S. dollars and was approximately 16% of our revenues this quarter. About 10% of our revenues this quarter were based in Europe, and 6% of our revenues related to our Canadian, Mexican, Oceanic South American and African operations. The average euro to U.S. dollar rate so far this quarter is about $1.06 and the average Canadian dollar exchange rate is about $0.73. If these average foreign exchange rates remain at their current levels for the quarter, we estimate that the FX conversion impact on our sequential revenues would be a negative, about $1 million, and the FX conversion impact year-over-year would be a positive of about $0.8 million. Customer concentration. We believe that our revenue and customer base is not very highly concentrated, although it has increased with the Sprint acquisition.

我們在美國境外賺取的收入以美元報告，約佔本季營收的 16%。本季我們約 10% 的收入來自歐洲，6% 的收入與加拿大、墨西哥、南美大洋洲和非洲業務有關。本季迄今歐元兌美元平均匯率約為 1.06 美元，加幣平均匯率約為 0.73 美元。如果本季這些平均外匯匯率維持在當前水平，我們估計外匯兌換對我們連續收入的影響將為負數，約為 100 萬美元，而與去年同期相比，外匯兌換影響將為正數約80萬美元。客戶集中度。我們相信，我們的收入和客戶群並不是高度集中，儘管隨著收購 Sprint 而增加。

Including the impact of the customers acquired in the Sprint business, our top 24 customers represented about 90% of our revenues this quarter. We acquired a number of larger enterprise customers with the Sprint business, and we are providing services to T-Mobile under the commercial services agreement. Our quarterly CapEx materially decreased and was $25.4 million this quarter compared to $37.4 million last quarter. On finance leases and finance lease payments, also known as capital leases. Our finance lease IRU obligations are for long-term dark fiber leases and typically have initial terms of 15 to 20 years or longer and often include multiple renewal options after the initial term. Our IRU finance lease obligations totaled $483.2 million at quarter end. We have a very diverse set of IRU suppliers and IRU contracts with over 315 different dark fiber suppliers. We acquired relationships with several new suppliers of dark fiber with the Sprint business. During the quarter, we recorded a purchase accounting measurement period adjustment to reclassify a lease agreement from right of use operating these assets acquired from T-Mobile to finance lease assets. This adjustment under U.S. GAAP accounting standard 842 accounting for leases resulted in a reclass of almost -- of about $161 million from our acquired operating lease liabilities to a finance lease liability.

包括 Sprint 業務中獲得的客戶的影響，我們的前 24 位客戶約占我們本季收入的 90%。我們透過 Sprint 業務收購了許多大型企業客戶，並根據商業服務協議向 T-Mobile 提供服務。我們的季度資本支出大幅下降，本季為 2,540 萬美元，而上季為 3,740 萬美元。關於融資租賃和融資租賃付款，也稱為資本租賃。我們的融資租賃 IRU 義務適用於長期暗光纖租賃，通常具有 15 至 20 年或更長的初始期限，並且通常包括初始期限後的多個續約選項。截至季末，我們的 IRU 融資租賃債務總額為 4.832 億美元。我們擁有非常多樣化的 IRU 供應商，並且與超過 315 家不同的暗光纖供應商簽訂了 IRU 合約。我們透過 Sprint 業務與幾家新的暗光纖供應商建立了關係。本季度，我們記錄了購買會計計量期間調整，將租賃協議從經營從 T-Mobile 收購的這些資產的使用權重新分類為融資租賃資產。根據美國公認會計原則 842 號租賃會計準則進行的這項調整導致我們收購的經營租賃負債中的約 1.61 億美元被重新分類為融資租賃負債。

The corresponding adjustment also reduced our cost of goods sold run rate by $12.6 million per quarter and increased our depreciation expense by about $11 million. Some comments on cash and operating cash flow. At quarter end, our cash and cash equivalents and restricted cash $166.million. Our $56.4 million of restricted cash is tied to the estimated fair value of our interest rate swap agreement. And as of November 6. So just recently, the swap valuation reduced from $56.4 million to $43.8 million. Our operating cash flow results are materially impacted by the timing and amount of our payments under our transition services agreement with T-Mobile and the presentation of the payments under our $700 million IP transit agreement. Payments under the IP transit agreement under U.S. GAAP are considered cash receipts from investing activities and are not classified as operating activities. Our operating cash flow was a use of $52.4 million for the quarter compared to a positive $82.6 million last quarter, mostly from the impact of the transition services agreement. Last quarter, the PSA agreement provided $118.8 million of operating cash flow since no payments were due or made during the quarter. This quarter, we paid $153.1 million under the TSA under their terms and when the payments were due.

相應的調整也使我們每季的銷售成本運行率降低了 1,260 萬美元，並使我們的折舊費用增加了約 1,100 萬美元。關於現金和經營現金流的一些評論。截至季末，我們的現金和現金等價物以及限制性現金為 1.66 億美元。我們的 5,640 萬美元限制性現金與我們的利率掉期協議的估計公允價值掛鉤。截至 11 月 6 日，互換估值從 5,640 萬美元降至 4,380 萬美元。我們的營運現金流量結果受到我們與 T-Mobile 的過渡服務協議下的付款時間和金額以及我們 7 億美元的 IP 傳輸協議下的付款列報的重大影響。根據美國公認會計原則，智慧財產權傳輸協議下的付款被視為投資活動的現金收入，不屬於營運活動。本季我們的營運現金流使用了 5,240 萬美元，而上季為 8,260 萬美元，主要來自過渡服務協議的影響。上季度，PSA 協議提供了 1.188 億美元的營運現金流，因為該季度沒有到期或支付任何付款。本季度，我們根據 TSA 條款和付款到期日支付了 1.531 億美元。

Combined with amounts billed under the TSA for the quarter, net cash provided from the TSA was $9.5 million this quarter, and that changed from last quarter under this one line item is $109.3 million. Most of the amounts paid under the TSA are for direct reimbursement of Sprint business vendors paid by T-Mobile on our behalf. We have transient to our payable systems and expect to transition the remaining vendors by the end of the year. IP transit payments under the IP transit agreement is $700 million.

加上本季根據 TSA 收取的金額，本季 TSA 提供的淨現金為 950 萬美元，與上季相比，此項目下的淨現金變動為 1.093 億美元。根據 TSA 支付的大部分款項用於直接償還由 T-Mobile 代表我們支付的 Sprint 業務供應商。我們已經過渡到我們的付費系統，並預計在今年年底之前過渡剩餘的供應商。 IP 傳輸協定下的 IP 傳輸付款為 7 億美元。

Our payments received under the IP transit agreement are recorded as cash provided by investing activities and were $29.2 million last quarter compared to $87.5 million this quarter. Total net cash used in investing activities was $22.3 million last quarter and cash provided by investment activities was $62.1 million this quarter. That was a sequential quarterly increase of cash of $84.4 million for this line item, investing activity. Dave mentioned debt and debt ratios. Our total gross debt at par, including our finance lease obligations was $1.4 billion at quarter end and our net debt was $1.3 billion. Our total gross debt to last 12 months EBITDA as adjusted and our net debt ratio both significantly improved this quarter. Our total gross debt to last 12 months EBITDA as adjusted ratio was 4.79 and net debt ratio was 4.24.

我們根據 IP 傳輸協議收到的付款記錄為投資活動提供的現金，上季為 2,920 萬美元，而本季為 8,750 萬美元。上季投資活動使用的淨現金總額為 2,230 萬美元，本季投資活動提供的現金為 6,210 萬美元。投資活動這一項目的現金環比季度增加了 8,440 萬美元。戴夫提到了債務和債務比率。截至季末，我們的以面額計算的總債務（包括融資租賃義務）為 14 億美元，淨債務為 13 億美元。我們過去 12 個月調整後的 EBITDA 總負債和淨負債比率在本季均顯著改善。我們過去 12 個月的總負債與 EBITDA 調整後的比率為 4.79，淨負債比率為 4.24。

There's a material improvement compared to gross debt trailing ratio as adjusted of 5.63 last quarter and net debt ratio of 4.56. Our consolidated leverage ratio, as calculated under the note indentures reduced to 5.09 from 5.30 last quarter. Our secured leverage ratio as calculated under our note indentures increased slightly from 3.5 -- up to 3.5 from 3.45.

與上季調整後的總負債比率 5.63 和淨負債比率 4.56 相比，有了實質改善。根據票據契約計算，我們的綜合槓桿比率從上季的 5.30 降至 5.09。根據票據契約計算，我們的擔保槓桿率從 3.5 略有上升，從 3.45 上升至 3.5。

Additional comments on the swap agreement. We are party to an interest rate swap agreement that modifies our fixed interest rate obligations associated with our $500 million 2026 notes to a variable interest rate obligation based upon the secured overnight financing rate for the remaining term of our 2026 notes. We record the estimated fair value of the swap agreement at each recording period, and we incur corresponding noncash gains or losses due to the changes in market interest rates. The fair value of our swap agreement increased by $4.8 million from last quarter at quarter end to a liability of $56.4 million. We are required to maintain a restricted cash balance with the counterparty equal to the liability. And as I mentioned previously, as of November 6, our swap valuation reduced to $43.8 million. Lastly, some comments on bad debt and DSO. Our days sales outstanding or DSO remained stable. Our DSO for worldwide accounts receivable was 24 days, the same as last quarter.

關於互換協議的附加評論。我們是利率互換協議的締約方，該協議將我們與 5 億美元 2026 年票據相關的固定利率義務修改為基於 2026 年票據剩餘期限的擔保隔夜融資利率的可變利率義務。我們在每個記錄期間記錄掉期協議的估計公允價值，並因市場利率的變化而產生相應的非現金利得或損失。截至季末，掉期協議的公允價值比上季增加了 480 萬美元，負債達 5,640 萬美元。我們需要與交易對手保持與負債相等的受限現金餘額。正如我之前提到的，截至 11 月 6 日，我們的掉期估值降至 4,380 萬美元。最後，關於壞帳和 DSO 的一些評論。我們的銷售業績或 DSO 保持穩定。我們的全球應收帳款 DSO 為 24 天，與上季相同。

In the fourth quarter, we will be converting the billing of the Sprint business customers for the Cogent billing platform. And in fact, we just completed that process. Our bad debt expense was only $0.8 million and only 3% of our revenues for the quarter, outstanding results. Again, we want to thank and recognize our worldwide billing and collections team members, including our new billing and collections employees from Sprint business. We're doing a fantastic job in serving our legacy Cogent customers and our newsprint customers and collecting for them and converting the Sprint billing to the Cogent billing system. I will now turn the call back over to Dave.

在第四季度，我們將把 Sprint 企業客戶的計費方式轉換為 Cogent 計費平台。事實上，我們剛剛完成了這個過程。我們的壞帳費用僅為 80 萬美元，僅佔本季營收的 3%，業績出色。再次，我們要感謝並認可我們的全球計費和收款團隊成員，包括來自 Sprint 業務的新計費和收款員工。我們在為傳統 Cogent 客戶和新聞紙客戶提供服務、為他們收款並將 Sprint 計費轉換為 Cogent 計費系統方面做得非常出色。我現在將把電話轉回給戴夫。

Great. Thanks, Tad. I'd like to highlight a couple of strengths of our network, our customer base and sales force. We continue to experience significant revenue and traffic growth at our legacy NetCentric business. We are direct beneficiaries of increased streaming over-the-top fit and other screen agitations, particularly in international markets. At quarter's end, we were on-net in 1,528 carrier-neutral data centers and 60 of Cogent's owned data centers for a grand total of 1,588 data centers, more than any other carrier as measured by independent third-party research.

偉大的。謝謝，泰德。我想強調一下我們的人脈、客戶群和銷售團隊的幾個優勢。我們的傳統 NetCentric 業務持續實現顯著的營收和流量成長。我們是串流媒體頂級適配和其他螢幕風潮增加的直接受益者，特別是在國際市場。截至季末，我們已在 1,528 個營運商中立資料中心和 60 個 Cogent 自有資料中心聯網，總計 1,588 個​​資料中心，根據獨立第三方研究的衡量，比任何其他營運商都多。

The breadth of our coverage enables our NetCentric customers to better optimize our network and reduce legacy. We expect that we will continue to widen this lead in the market and project to add approximately an additional 100 carrier-neutral per year to our network footprint over the next several years. We expect to convert an additional 41 of the former Sprint technical facilities to new Cogent data centers. To date, we have converted 4 of these facilities. As of today, whereas wavelengths in 50 carrier-neutral data centers with reasonable provisioning windows, and we are selling wavelengths in 250 additional locations with a prolonged ability to install those services. In the next 14 months, we expect to be able to sell wavelength services in 100 U.S. carrier-neutral data centers was substantially reduced provisioning time. I know our traffic growth accelerated in the quarter. Our traffic growth increased by 6% sequentially and 26% year-over-year. We expanded our footprint and have additional IRUs and owned fiber and rate agreements. At quarter's end, we are the most interconnected network in the world with 7,971 networks directly connected to Cogent. This collection of ISPs, telephone companies, cable companies, mobile operators and other carriers allow us to reach directly the vast majority of the world's broadband subscribers and mobile phone customers.

我們的覆蓋範圍廣泛，使我們的 NetCentric 客戶能夠更好地優化我們的網路並減少遺留問題。我們預計，我們將繼續擴大在市場上的領先地位，並計劃在未來幾年內每年在我們的網路覆蓋範圍中再增加約 100 個營運商中立網路。我們預計將另外 41 個前 Sprint 技術設施改造為新的 Cogent 資料中心。到目前為止，我們已經改造了其中 4 個設施。截至今天，雖然波長在 50 個運營商中立的資料中心具有合理的配置窗口，但我們正在另外 250 個地點銷售波長，並且能夠長期安裝這些服務。在未來 14 個月內，我們預計能夠在 100 個美國營運商中立的資料中心出售波長服務，並大幅縮短配置時間。我知道我們的流量成長在本季加速。我們的流量成長比上一季成長 6%，比去年同期成長 26%。我們擴大了業務範圍，並擁有更多 IRU 和自有光纖和費率協議。截至季末，我們是世界上互聯程度最高的網絡，有 7,971 個網路直接連接到 Cogent。 ISP、電話公司、有線電視公司、行動營運商和其他營運商的集合使我們能夠直接接觸到全球絕大多數寬頻用戶和行動電話客戶。

At quarter's end, we had 257 sales professionals solely focused on the NetCentric market. This group of professionals is 1 of the largest most successful sales teams in the industry. This team will be primarily responsible for growing our wavelength market. Now for a couple of comments on our corporate business. We are seeing positive trends in our corporate business. Corporate customers are increasingly integrating new applications in part of their working environment includes the regular use of streaming video conference. This requires high-capacity connections, both inside and outside of their premise. Our aggressive partial lower bandwidth costs and provide greater coverage has begun to post corporate demand for our bidirectional symmetric 1 gig and 10 gig ports. Corporate customers are increasingly buying connections in carrier-neutral data centers for redundancy for the ad hoc PNs to support a hybrid work environment. Our enterprise customers continue to focus on our dedicated Internet access and VPN services. We are continuing to terminate noncore products and the significant reduction that you saw in the last quarter was the elimination of our voice services based on session initiation protocol. Now for a comment on our sales force productivity. We remain focused on training and improving our sales force efficacy.

截至季末，我們有 257 位銷售專業人員專門專注於 NetCentric 市場。這群專業人士是業界最大、最成功的銷售團隊之一。該團隊將主要負責發展我們的波長市場。現在對我們的企業業務發表一些評論。我們看到我們的企業業務呈現出正面的趨勢。企業客戶越來越多地將新應用程式整合到其工作環境中，包括定期使用串流視訊會議。這需要其場所內部和外部的高容量連接。我們積極降低部分頻寬成本並提供更大的覆蓋範圍，這已開始滿足企業對雙向對稱 1 GB 和 10 GB 連接埠的需求。企業客戶越來越多地購買營運商中立資料中心的連接，為臨時 PN 提供冗餘，以支援混合工作環境。我們的企業客戶持續關注我們的專用網路存取和 VPN 服務。我們將繼續終止非核心產品，您在上個季度看到的顯著減少是消除了基於會話啟動協議的語音服務。現在評論一下我們的銷售人員生產力。我們仍然專注於培訓和提高銷售人員的效率。

We do manage out underperformers. On a sequential basis, our total head count and sales decreased by 10 to 637 reps. Our sales force turnover rate was stable at a 5.7% per month for the quarter, up from a peak of 8.7 during the pandemic and consistent with our long-term average rate of sales force turnover of 5.7%. We remain very optimistic about our unique position to serve small- and medium-sized businesses located in the 1,860 multi-tenant office buildings, representing over 1 billion square feet of rentable space in central business districts. We're excited about the addition of the large enterprise customer base and our ability to sell optical transport networking to our NetCentric as well as enterprise customers. We also remain encouraged by demand in our data center footprint and our ability to expand that footprint. We have a significant backlog and funnel of wavelength orders of approximately 1,000 unique wavelengths. However, due to longer provisioning cycles that we are temporarily experiencing, we are unsure if all of these opportunities will convert into install of orders. Currently, we see key indicators of office activity work reentry and leasing activity, all improving as tenants continue to require employees to return to their offices and commercial office vacancy rates have continued to decline.

我們確實淘汰了表現不佳的員工。環比來看，我們的總人數和銷售額減少了 10 名，至 637 名代表。本季我們的銷售人員流動率穩定在每月 5.7%，高於疫情期間的峰值 8.7%，與我們 5.7% 的銷售人員長期平均流動率一致。我們對我們為中小型企業提供服務的獨特地位仍然非常樂觀，這些辦公大樓位於 1,860 座多租戶辦公大樓中，代表著中央商務區超過 10 億平方英尺的可出租空間。我們對大型企業客戶群的增加以及我們向 NetCentric 和企業客戶銷售光傳輸網路的能力感到興奮。我們對資料中心足跡的需求以及擴大足跡的能力仍然感到鼓舞。我們有大量積壓的波長訂單和大約 1,000 個獨特波長的漏斗。然而，由於我們暫時經歷的供應週期較長，我們不確定所有這些機會是否都會轉換為訂單安裝。目前，我們看到辦公室活動、工作重入和租賃活動的關鍵指標均有所改善，因為租戶繼續要求員工返回辦公室，商業辦公室空置率持續下降。

Certain corporations have decreased the amount of square footage are taking per location, which will ultimately allow us to grow our addressable market for unique corporate customers. Under our indenture, including our $250 million general basket, we have a cumulative amount of cash available for dividend buybacks that actually exceeds the amount of cash that we have available.

某些公司已經減少了每個地點佔用的面積，這最終將使我們能夠為獨特的企業客戶擴大我們的目標市場。根據我們的契約，包括我們 2.5 億美元的一般籃子，我們可用於股息回購的累積現金量實際上超過了我們可用的現金量。

So we have effectively the ability to use all cash for or friendly activities, whether it be dividends and/or buybacks. We are diligently working on integrating the Sprint business. We're excited and optimistic about cash flow-generating capabilities. We'll continue to achieve annual savings of about $180 million on the North American network, $25 million internationally and $15 million in reduction in Cogent expenses. We also anticipate additional SG&A savings and other cost and revenue synergies over the next several years. Now I'd like to open the floor for questions.

因此，我們實際上有能力將所有現金用於友好活動，無論是股息和/或回購。我們正在努力整合 Sprint 業務。我們對現金流產生能力感到興奮和樂觀。我們將繼續在北美網路上每年節省約 1.8 億美元，在國際上節省 2,500 萬美元，並在 Cogent 費用上減少 1,500 萬美元。我們也預計未來幾年將進一步節省銷售管理費用以及其他成本和收入綜效。現在我想請大家提問。

(Operator Instructions)

（操作員說明）

Our first question comes from Greg Williams from TD Cowen.

我們的第一個問題來自 TD Cowen 的 Greg Williams。

Dave, I was hoping you can unpack the EBITDA be it by a little bit. I know you've integrated the Sprint business with Cogent by the way. So the investors are looking at it as core EBITDA for Cogent if it's around $60 million. You're going to add another $87 million to the T-Mobile payment, and then we're subtracting the EBITDA burn from the Sprint GMG business. And it sounds like you got more from Sprint GMG then they appreciate it. So I guess the question is, typically, you said you're at a run rate when you close the business at $180 million earned. Where is that run rate today? And the second question then is, if you are cutting more than we expected, do you still anticipate breaking even by year 2 or end of year 3? Or could that be accelerated to break even faster?

戴夫，我希望你能稍微解開 EBITDA。順便說一下，我知道您已經將 Sprint 業務與 Cogent 進行了整合。因此，如果該數字約為 6000 萬美元，投資者會將其視為 Cogent 的核心 EBITDA。您將在 T-Mobile 付款中再增​​加 8700 萬美元，然後我們將從 Sprint GMG 業務中扣除 EBITDA 消耗。聽起來你從 Sprint GMG 得到了更多，然後他們很欣賞。所以我想問題是，通常情況下，你說過當你以 1.8 億美元的收入關閉公司時，你的運作率是正常的。今天的運行率在哪裡？第二個問題是，如果您的削減幅度超出我們的預期，您是否仍預計在第二年或第三年年底實現收支平衡？或者是否可以加速以更快地突破？

Yes. So as Tad mentioned, we're no longer segregating the customers. So the acquired Sprint customers are now fully integrated in the Cogent and are part of our single accounting and single billing platform. We are ahead of schedule in terms of reducing the expenses of that business. Probably the most significant savings comes from the immediate elimination of gross margin negative products. The nearly 9,000 SIP services that we were able to eliminate in the quarter allowed us to improve margins.

是的。正如泰德所提到的，我們不再隔離客戶。因此，收購的 Sprint 客戶現在已完全整合到 Cogent 中，並成為我們單一會計和單一計費平台的一部分。我們在減少該業務的費用方面提前了。最顯著的節省可能來自立即消除毛利率負產品。我們在本季消除了近 9,000 個 SIP 服務，從而提高了利潤率。

That termination did not occur until the end of the quarter. So it was a September 30 termination. These customers were given notice of end of life of these products a year ago when the initial transaction was signed with T-Mobile in early September of 2022. As part of that agreement, T-Mobile agreed to end of life a number of products. The SIP product was the largest of those products. The 24 products that we identified for elimination carried negative gross margins. So they are either direct costs or to employee involvement in the products that we've been able to eliminate. We are not in a position today to modify our breakeven 2 years post closing. But we do feel right now we are running ahead of schedule on those cost synergies and should be able to continue to achieve better cost reductions. There are other noncore products beyond SIP that are also being eliminated, you saw that in the 1,233 products that were eliminated for corporate customers in the quarter that were non-SIP products, not all of the reduction was noncore, but the majority of it was.

直到本季末才終止。因此，終止日期為 9 月 30 日。一年前，當 2022 年 9 月初與 T-Mobile 簽署初始交易時，這些客戶就收到了這些產品生命週期終止的通知。作為該協議的一部分，T-Mobile 同意終止一些產品的生命週期。 SIP 產品是這些產品中最大的。我們確定淘汰的 24 種產品的毛利率為負。因此，它們要么是直接成本，要么是員工參與我們已經能夠消除的產品的成本。今天我們無法修改交易結束後兩年的損益平衡點。但我們確實覺得現在我們在這些成本協同效應方面比計劃提前，並且應該能夠繼續實現更好的成本削減。除了SIP之外，還有其他非核心產品也在被淘汰，你看到在本季為企業客戶淘汰的1,233種非SIP產品中，並不是所有的削減都是非核心產品，但大部分是被淘汰的。 。

So what we're trying to do is as quickly as possible, manage customers away from these unprofitable products. But also as part of our agreement with T-Mobile, we are going to honor each customer's contract, and customers have just contractual provisions that require us to provide some of these services through the end of 2026. So it is why we were so definitive in our ability to schedule out the reduction in cost. Now in some cases, we've been able to convince customers to allow us to terminate these products early and that is an added benefit to us in helping us reduce the cash burn.

因此，我們正在努力做的是盡快讓客戶遠離這些無利可圖的產品。但作為我們與 T-Mobile 協議的一部分，我們將履行每個客戶的合同，而客戶的合同條款要求我們在 2026 年底之前提供其中一些服務。這就是為什麼我們如此明確我們有能力安排成本削減。現在，在某些情況下，我們已經能夠說服客戶允許我們提前終止這些產品，這對我們來說是一個額外的好處，可以幫助我們減少現金消耗。

My next question comes from David Barden from Bank of America.

我的下一個問題來自美國銀行的大衛巴登。

You got Alex on for Dave. Dave, maybe just first question here, just in terms of wavelengths. I think it came in a little bit lighter than our expectations. And can you just kind of frame the opportunity and where you think you could be in wavelength revenues in at the end of 2024.

你讓亞歷克斯代替戴夫。戴夫，也許只是第一個問題，就波長而言。我認為它比我們的預期要輕一些。您能否簡單描述一下機會以及您認為在 2024 年底您的波長收入可能會達到什麼水平？

And then secondly, on SG&A -- sorry if I missed it on the call, but can you talk a little bit more about what drove the decrease quarter-over-quarter? And then what kind of the run rate we should expect here for SG&A heading into the next year?

其次，關於銷售、管理和行政費用——如果我在電話會議上錯過了，很抱歉，但是您能多談談是什麼推動了季度環比下降嗎？那我們預計明年的 SG&A 運行率會是多少？

Yes. So I'll take those in order. On wavelengths, as we commented on the previous earnings call, we had a very narrow set of locations where we can provision within a 60-day window and a larger but still not adequate set of locations where we can provision within a 120-day window. We have increased the number of locations where we can provision within that shorter window, we've also partially reduced that window down from 60 to about 50 days, still not the 17-day SLA target that we give for our transit services. We have over 1,000 unique wavelength orders, either in provisioning or in our sales funnel. That would meet all of our growth objectives and there will be additional orders being added to that funnel on a daily basis.

是的。所以我會按順序處理這些。在波長方面，正如我們在先前的財報電話會議上所評論的那樣，我們可以在 60 天的窗口內提供的位置非常狹窄，而我們可以在 120 天的窗口內提供的位置範圍更大但仍然不夠。 。我們增加了可以在較短的窗口內提供服務的地點數量，我們還將該窗口從 60 天部分縮短到大約 50 天，但仍然沒有達到我們為運輸服務提供的 17 天 SLA 目標。我們在供應或銷售管道中擁有超過 1,000 個獨特的波長訂單。這將滿足我們所有的成長目標，並且每天都會有額外的訂單添加到該管道中。

I want to caution though that some of these orders will have 120- to 130-day provisionings. And as a result, some of those orders may not ultimately get installed customers may be frustrated. While we are trying to manage those expectations, we have a number of foundational steps that we're taking to streamline our provisioning of wavelength services, we already provisioned this quarter about 150 additional wavelengths just since the close of last quarter, so basically 1/3 of what we had in the base just got provisioned in the past 6 weeks.

但我想提醒大家的是，其中一些訂單的供應期限為 120 至 130 天。因此，其中一些訂單最終可能無法安裝，客戶可能會感到沮喪。在我們努力管理這些期望的同時，我們正在採取一些基本步驟來簡化我們的波長服務配置，自上季度末以來，我們已經在本季度額外配置了大約 150 個波長，所以基本上是 1/我們在基地擁有的3 件物品在過去6 週內剛剛得到配置。

We expect that pace to continue to accelerate. We also believe that we will be on a revenue run rate of close to $100 million in wavelength sales post closing. So in May of 24, the monthly run rate for wavelength sales should be in the order of about $8 million a month. And our sales funnel, I think, supports that and the continued interest that we're seeing due to the uniqueness of our routes and the ubiquity of locations we wish to serve, I think, are all indications that will do better.

我們預計這一步伐將繼續加快。我們也相信，交易完成後，我們的波長銷售收入將接近 1 億美元。因此，到 24 日 5 月，波長銷售的月運行率應該約為每月 800 萬美元。我認為，我們的銷售漏斗支持了這一點，並且由於我們路線的獨特性和我們希望服務的地點的普遍性，我們看到了持續的興趣，我認為，所有這些都表明我們會做得更好。

On SG&A, some of it is head count reduction. Some of it is facilities consolidation. Those are the two main areas that we've been able to achieve SG&A improvments.

在SG&A 方面，其中一些是人員減少。其中一些是設施整合。這是我們能夠實現 SG&A 改進的兩個主要領域。

There was also a substantial improvement in bad debt expense quarter-to-quarter. That was a $4 million reduction. So we were less than 1% of revenues this quarter. Our typical bogey is about 1% of revenue. So we outperformed on that but -- and bad debt expense was abnormally high last quarter as we had to reestablish some reserves.

壞帳費用也逐季大幅改善。相當於減少了 400 萬美元。所以我們本季的營收不到 1%。我們典型的忌諱大約是收入的 1%。因此，我們在這方面表現出色，但是——上個季度的壞帳費用異常高，因為我們必須重新建立一些準備金。

I think we're at 0.3% this quarter, which I think is the lowest bad debt expense we've had in the company's history.

我認為本季我們的壞帳費用為 0.3%，這是公司歷史上壞帳費用最低的一次。

Our next question comes from Frank Louthan from Raymond James.

我們的下一個問題來自雷蒙德詹姆斯的弗蘭克勞森。

I want to talk about the outlook for the business if returned office doesn't really improve. So how much of that long-term guide that you've given out is kind of dependent on an improvement in the return to office environment? And what level of occupancy do we kind of need to hit over the long term to achieve that? And then what are your options if that doesn't happen to still kind of hit that long-term guidance goal?

我想談談如果返回辦公室並沒有真正改善的話，業務前景如何。那麼，您發布的長期指南有多少取決於重返辦公環境的改善？從長遠來看，我們需要達到什麼程度的入住率才能實現這一目標？如果這仍然無法達到長期指導目標，您有什麼選擇？

Yes. So our long-term growth targets of 5% to 7% are predicated on office occupancy and corporate performance being similar to the current levels that they are at today. Again, we have diversified our total revenue base now having 3 discrete segments being less exposed to pure corporate growth. Our enterprise customers tend to be much more global in their footprint. Just to remind you, 44% of total revenues are Corporate, 34% are NetCentric, 22% are Enterprise. Our NetCentric business has actually continued to outperform long-term averages and our ability to have a total revenue growth rate in that 5% to 7% range is possible with vacancy rates remaining elevated at about 15% in central business districts.

是的。因此，我們 5% 至 7% 的長期成長目標是以辦公室入住率和企業績效與當前水準相似為基礎的。我們再次實現了總收入基礎的多元化，現在擁有 3 個獨立的細分市場，較少受到純粹企業成長的影響。我們的企業客戶的足跡往往更加全球化。只要提醒您一下，總收入的 44% 來自企業，34% 來自 NetCentric，22% 來自企業。我們的 NetCentric 業務實際上繼續跑贏長期平均水平，並且我們有能力實現 5% 至 7% 範圍內的總收入增長率，而中央商務區的空置率仍保持在 15% 左右的高位。

While we believe that vacancy number will come down, we can achieve our growth rate and our guidance targets at these elevated levels and are guidance is also predicated on our NetCentric business moderating, which it continues to accelerate, as you saw in the traffic stats that we provided sequential growth growing from 4% sequentially last quarter to 6% and year-over-year growth growing fro 21% to 26%. So material improvements in that business continuing longer. And then finally, we are very optimistic about our wavelength opportunity based on the breadth of our sales backlog.

雖然我們相信空缺數量將會下降，但我們可以在這些較高的水平上實現我們的增長率和指導目標，並且指導也基於我們的NetCentric 業務放緩，它繼續加速，正如您在流量統計中看到的那樣我們提供的環比增長率從上季度的 4% 增至 6%，同比增長率從 21% 增至 26%。因此，該業務的實質改善持續時間更長。最後，基於我們銷售積壓的廣度，我們對我們的波長機會非常樂觀。

And you mentioned on the waves that an $8 million run rate for sales, what is sort of a quarterly run rate of conversion to that from sales to kind of what you'll be able to recognize in the quarter?

您在波浪中提到 800 萬美元的銷售運行率，從銷售到您在本季度能夠認識到的轉換的季度運行率是多少？

So obviously, the growth rate we achieved this quarter in waves of 88% sequentially is not sustainable. That growth rate will moderate. I would say that for the, I guess, second quarter of '24, wavelength sales will probably be in the $20 million range for the quarter. But building throughout the quarter.

顯然，我們本季實現的連續 88% 的成長率是不可持續的。該增長率將會放緩。我想說的是，我猜想，2024 年第二季的波長銷售額可能會在該季度 2000 萬美元的範圍內。但整個季度都在建設。

Next question comes from Walter Piecyk from LightShed.

下一個問題來自 LightShed 的 Walter Piecyk。

Dave, just some questions on corporate. I know there's a lot of moving parts now that you have that Sprint/T-Mobile business in there, but it looks like on a pro forma basis, it was down sequentially. I'm just curious when you expect that to grow on a sequential basis.

戴夫，我有一些關於公司的問題。我知道現在有很多變動的部分，因為 Sprint/T-Mobile 業務在那裡，但看起來在預期的基礎上，它是連續下降的。我只是很好奇你什麼時候期望它會連續成長。

Actually, I would disagree with it being down. I think the majority of what was down in corporate was the elimination of the SIP product and other non-core products. We did acquire corporate customers from Sprint as well as enterprise customers. If we looked at our MTOB footprint, we actually saw the number of connections grow. So I would kind of disagree with the premise of your statement.

事實上，我不同意它被關閉。我認為企業的大部分下滑是 SIP 產品和其他非核心產品的淘汰。我們確實從 Sprint 獲得了企業客戶以及企業客戶。如果我們查看 MTOB 足跡，我們實際上會看到連接數量正在增長。所以我有點不同意你聲明的前提。

It'd be great if you actually reported. I know Tad in his prepared remarks (inaudible) pro forma sub growth type numbers, but maybe providing pro forma revenue and EBITDA would have been more helpful. So if we look at the fourth quarter then, is there going to be a similar type of excuse in terms of the shutdown at the end of the fourth quarter? Or should there be actual sequential growth in the fourth quarter?

如果你真的檢舉就太好了。我知道泰德在他準備好的評論中（聽不清楚）預估子成長類型數字，但也許提供預估收入和 EBITDA 會更有幫助。那麼，如果我們看看第四季度，是否會在第四季末出現類似的停工藉口？或者第四季是否應該出現實際的環比成長？

Well, as we have said, there are still non-core products that we are trying to eliminate as quickly as we possibly can. These products carry negative gross margin. They were a significant contributor to the losses at T-Mobile, and SIP was the largest of these products. But the run rate...

嗯，正如我們所說，我們仍然試圖盡快消除一些非核心產品。這些產品的毛利率為負。它們是 T-Mobile 虧損的重要原因，而 SIP 是這些產品中最大的。但運行率...

So what is the baseline then for corporate of non -- can you give us some type of comparable. So we don't always have the excuse of like, oh, we just churned off non-core stuff, like what is the baseline in corporate revenue of stuff that's generating gross margin.

那麼，非企業的基準是什麼——你能給我們某種類型的可比較的嗎？因此，我們並不總是有這樣的藉口，哦，我們只是大量生產非核心產品，例如產生毛利率的產品的公司收入基準是多少。

So we report the non-core products separately, and we had a run rate of those non-core products of about $11 million. That will go to zero or as close to zero as possible.

因此，我們單獨報告非核心產品，這些非核心產品的運作率約為 1,100 萬美元。這將為零或盡可能接近零。

So is that $11 million in the $120 million from the quarter? For corporate revenue that was reported. Any of that $11 million.

那麼，這 1,100 萬美元是本季 1.2 億美元中的 1,100 萬美元嗎？對於所報告的公司收入。這 1100 萬美元中的任何一個。

$11 million is non-core revenue.

1100 萬美元是非核心收入。

But non-core accounts corporate, yes. So that is -- the majority of that is in corporate.

但非核心客戶公司，是的。也就是說，其中大部分是在企業中。

So your baseline in corporate is effectively, basically 1 -- whatever it is, $120 million minus the $11 million, and we'll just have to get an update on the $11 million every quarter, and then we'll figure out what your true organic growth rate is. I would suggest maybe you actually just put that in the press release and provide that as a pro forma number to give better transparency to what's going on in the business. I also have a question on the lease expense. So you moved -- I think it was like $12.5 million out of OpEx. So you boost your EBITDA by $12.5 million in the CapEx. So if I look at that lease number on CapEx, I think that was like $40 million?

所以你在公司的基線實際上是 1——不管它是什麼，1.2 億美元減去 1100 萬美元，我們只需要每個季度更新 1100 萬美元，然後我們就會弄清楚你的真實情況是什麼有機增長率是。我建議您實際上只是將其放入新聞稿中，並將其作為預計數字提供，以便為業務中正在發生的事情提供更好的透明度。我還有一個關於租賃費用的問題。所以你搬家了——我認為營運支出大約有 1250 萬美元。因此，您的 EBITDA 資本支出增加了 1,250 萬美元。因此，如果我查看資本支出上的租賃數字，我認為這大約是 4000 萬美元？

It's not in CapEx. It's in principal payments because it is a lease payment. It is not a CapEx.

它不在資本支出中。它是本金付款，因為它是租賃付款。它不是資本支出。

Now I understand. So whatever I do this for the telcos. Telcos always like to try and exclude that from CapEx, I consider that CapEx. So that's fine. But bottom line, as you moved it, you helped EBITDA and you moved it on to the cash flow statement, fine. Is that a recurring $12.5 million? Is that -- like how do we look at that number? Because obviously, free cash flow is ultimately everything that matters.

現在我明白了。所以無論我為電信公司做什麼。電信公司總是喜歡嘗試將其從資本支出中排除，我認為是資本支出。所以沒關係。但最重要的是，當你移動它時，你幫助了 EBITDA，並將其轉移到現金流量表上，很好。這是 1250 萬美元的經常性資金嗎？就像我們如何看待這個數字一樣？因為顯然，自由現金流最終才是最重要的。

Right, yes. That's a change in accounting. So it will continue until the lease expires.

對，是的。這是會計方面的變動。所以它將持續到租約到期為止。

And as we indicated, in the appraisal for the acquired assets, there was approximately $150 million of uneconomic lease obligations that reduced the appraised value to get to the $1 billion value for the network and the majority of that was associated with this lease, and this lease in fact, met all of the criteria to be treated as a financing or capital lease as opposed to an operating lease. This was just a correction, but it will continue until that lease expires.

正如我們所指出的，在對所收購資產的評估中，大約有 1.5 億美元的不經濟租賃義務，導致網路的評估價值降低至 10 億美元，其中大部分與該租賃相關，而這事實上，租賃符合被視為融資或資本租賃而非經營租賃的所有標準。這只是一次更正，但它將持續到租約到期為止。

But the capital lease principal payments, I guess is, how you're calling it, was $41 million. So of that $41 million only $12 million was moved out of OpEx helping your EBITDA. Is it -- do I have that right?

但資本租賃本金付款，我想，你是這麼稱呼的，是 4,100 萬美元。因此，在這 4,100 萬美元中，只有 1,200 萬美元從營運支出中轉移出來，幫助您實現 EBITDA。是嗎——我說得對嗎？

Yes, that's about right. Yes.

是的，差不多是這樣。是的。

That's correct.

這是正確的。

What was the other? Because last quarter was $8 million. So what are those -- what are the other $30 million or $25 million of payments that are capital lease? And is that an ongoing payment that's going to pinch your free cash flow?

另一個是什麼？因為上個季度是 800 萬美元。那麼，那些屬於資本租賃的其他 3000 萬美元或 2500 萬美元付款是什麼？這筆持續付款是否會擠壓您的自由現金流？

So we have a total of 315 different suppliers and over 3,000 unique IRUs, those IRUs fluctuate. Some are paid annually, some are paid quarterly, summer pay monthly, some are paid upfront. And you can go back and look at the principal payment on capital lease run rate that we've had and see a fair amount of sequential volatility based on the quarter end or annual, but you can take the annualized rate and extrapolate that and add this additional $12 million a quarter. And that would get you to a...

因此，我們總共有 315 個不同的供應商和 3,000 多個獨特的 IRU，這些 IRU 是波動的。有些按年支付，有些按季度支付，夏季按月支付，有些預付。您可以返回並查看我們擁有的資本租賃運行率的本金付款，並看到基於季末或年度的相當數量的連續波動，但您可以採用年化率並推斷並添加此每季度額外增加1200萬美元。這會讓你...

So what is the annual rate? Is that -- because legacy obviously didn't include Sprint. So if I'm adding $12 million , what is the legacy? Because I look at '22 and you had $45 million. So you're saying that it's basically going to be...

那麼年利率是多少呢？是因為遺產顯然不包括 Sprint。那麼，如果我增加 1200 萬美元，會留下什麼遺產？因為我看 22 年你有 4500 萬美元。所以你是說這基本上是...

Only finance lease with the acquired business.

僅與所收購的業務進行融資租賃。

This is the only incremental lease.

這是唯一的增量租賃。

Only finance.

只有金融。

So we're talking like $60 million on a go-forward basis for what you call principal payments, what I call CapEx, but whatever you want to call it, that impacts the free cash flow.

因此，我們談論的是大約 6000 萬美元，用於您所謂的本金支付，我稱之為資本支出，但無論您想怎麼稱呼它，這都會影響自由現金流。

That's correct.

這是正確的。

Our next question comes from Tim Horan from Oppenheimer.

我們的下一個問題來自奧本海默的蒂姆霍蘭。

Can you just level set where you think the EBITDA margins will be 4, 5 years from now? Also maybe where you think the wavelength of revenue run rate will be at that time? And then just a clarification on your $20 million of sales of wavelength in the second quarter next year, is that bookings? Or is that recognized revenue? I mean will it take another quarter which you recognize that revenue. Are you talking about actually sales bookings? Or are you actually going to use towards sales revenue bookings.

您能否將 4、5 年後的 EBITDA 利潤率設定為一個水準？另外，也許您認為當時的收入運行率會在哪裡？然後澄清一下你們明年第二季 2000 萬美元的波長銷售額，這是預訂嗎？或者說這是確認的收入？我的意思是，您還需要一個季度才能確認該收入嗎？您是在談論實際的銷售預訂嗎？或者您實際上打算將其用於銷售收入預訂。

We're actually talking about revenue run rate, recognized installed revenue. And again, to be clear, we anticipate this backlog that we have as well as additional sales to begin to install with shorter and shorter provisioning windows. But we expect to be doing about $20 million of reported, not bookings, but reported. And the idea of presenting a backlog number is something -- and a bookings number is something that we historically don't do and probably will do for the next couple of quarters until investors see a consistent cadence in our growth in wavelength revenue. And at that point, we will only be reporting actual revenue, not pipeline and funnels and provisioning queues. But I think in the short term, that's necessary.

我們實際上談論的是收入運行率，即已確認的安裝收入。再次需要明確的是，我們預計我們的積壓訂單以及額外的銷售量將開始安裝越來越短的配置視窗。但我們預計將完成約 2000 萬美元的報告（不是預訂，而是報告）。提供積壓訂單數量的想法是有意義的——而預訂數量是我們歷史上不做的事情，而且可能會在接下來的幾個季度做，直到投資者看到我們波長收入增長的一致節奏。到那時，我們將只報告實際收入，而不是管道、管道和供應隊列。但我認為從短期來看，這是必要的。

And then to go to answer your question around a 5-year target, and I'm going to use 5 years from closing. So May of '23 to May of '28. We anticipate being on a run rate for wavelength sales of approximately $500 million and a total run rate for the combined business in excess of $1.5 billion, up from the $1.1 billion of $1.150 billion, $1.2 billion that we're running at right now. And EBITDA margins in the mid-30s. And that will be -- last year will probably be a little bit above that because we will still be getting a payment stream from T-Mobile, which will be counted, but we'll be going away probably by year 6.

然後圍繞 5 年目標來回答你的問題，我將用距離結束後的 5 年。所以從23年5月到28年5月。我們預計波長銷售的運行率約為 5 億美元，合併後業務的總運行率將超過 15 億美元，高於我們目前運行的 11 億美元、11.5 億美元、12 億美元。 EBITDA 利潤率約為 30 多歲。去年的情況可能會比去年高一點，因為我們仍然會從 T-Mobile 獲得支付流，這將被計算在內，但我們可能會在第 6 年消失。

Very helpful. And just the wavelength market. Can you give us just a little bit more color what's going on, do you think, with the overall growth in that market of volumes and pricing and the competitive dynamics now that you've had more time to be in that market.

很有幫助。還有波長市場。您認為，隨著該市場銷售和定價的整體增長以及競爭動態，您是否可以給我們更多的信息，因為您有更多的時間進入該市場。

Yes. I mean, we did a fair amount of customer outreach during the period between signing and closing. And since closing, we're actually taking orders and the backlog I've mentioned is a good indication of that. The demand set seems robust. The list of data centers, that people want connectivity to, is long. It is fortunate that we're already in those facilities, but are not yet wave-enabled in those facilities. So there's kind of two steps. One, can we even sell a wave in the facility. And then two, can we provision it in a much more expeditious way. We are working on both fronts.

是的。我的意思是，在簽約和成交期間，我們進行了大量的客戶外展活動。自從關閉以來，我們實際上正在接受訂單，我提到的積壓就是一個很好的跡象。需求似乎很強勁。人們想要連接的資料中心列表很長。幸運的是，我們已經在這些設施中，但尚未在這些設施中啟用波。所以有兩個步驟。第一，我們能在設施裡賣一波嗎？第二，我們能否以更迅速的方式提供它。我們正在這兩個方面開展工作。

In terms of the demand set, we're seeing it from -- some of our larger content companies, hyperscale-type customers, we're seeing it from a broader set of content players and a number of regional and international access network operators. And we are seeing a small but growing set of AI-centric businesses that had traditionally not been wavelength buyers approaching us to buy wavelengths in some of these data centers.

就需求而言，我們從一些較大的內容公司、超大規模客戶、更廣泛的內容播放器以及一些區域和國際接入網路營運商那裡看到了這一點。我們看到一小部分以人工智慧為中心的企業不斷成長，這些企業傳統上不是波長買家，正在向我們尋求購買其中一些資料中心的波長。

So we're seeing four discrete buckets. The three NetCentric buckets I've just spoken about. And then finally, some enterprise customers who historically had bought waves from Sprint and other enterprise customers who are constructing private networks that are independent of the Internet. A wavelength is more expensive than transit on a perfect utilized basis. However, it has the three positive attributes of being able to support large file transfers, having predefined latency and complete diversity from the Internet for greater security.

所以我們看到四個離散的桶子。我剛才談到的三個 NetCentric 儲存桶。最後，一些歷史上從 Sprint 購買 Waves 的企業客戶和其他正在建立獨立於互聯網的專用網路的企業客戶。在完美利用的基礎上，波長比傳輸更昂貴。然而，它具有三個積極的屬性：能夠支援大文件傳輸、具有預定義的延遲以及來自互聯網的完全多樣性以提高安全性。

Those are the reasons why companies will pay a premium per bit mile for a wavelength.

這就是為什麼公司願意為波長的每比特英里支付溢價的原因。

Our next question comes from Nick Del Deo from MoffetNathanson.

我們的下一個問題來自 MoffetNathanson 的 Nick Del Deo。

I didn't catch all of Tad's comments regarding the TSA change or at least how that's recorded. It looks like the balance sheet value in terms of what you owe T-Mobile went down quite a bit. Just to review, is that just a function of getting off their platforms faster. And I think you noted that you're off their billing system effective now. What's left to do on that front?

我沒有聽清楚泰德關於 TSA 變更的所有評論，或者至少沒有聽清這些評論是如何記錄的。看起來你欠 T-Mobile 的資產負債表價值下降了很多。回顧一下，這只是更快離開他們平台的功能。我想你已經注意到你現在已經退出他們的計費系統了。這方面還需要做些什麼？

Yes, the TSA is entirely associated with paying vendors. So initially, they were paying 100% of the vendors we assumed with the wireline business on our behalf. And that has been winding down. In the second quarter, we were billed for May and June. However, those payments were not due yet. So we made no payments in the second quarter. That resulted in those charges being cash flow from operating activities of about $118 million.

是的，TSA 完全與付費供應商相關。因此，最初，他們代表我們向我們假定的有線業務供應商支付 100% 的費用。而這種情況已經逐漸結束。在第二季度，我們支付了五月和六月的費用。然而，這些付款尚未到期。所以我們在第二季沒有付款。這導致這些費用是來自經營活動的現金流量約為 1.18 億美元。

In this quarter, we have made three monthly payments, similar to the IP Transit, but on the cost side instead of the revenue side. So that's why you see the large swing in that line item if you look at the cash flow statement. At the end of the quarter, we were -- we still owe $69 million under the TSA agreement, which is essentially 2 months of activity. As we sit here now, we have migrated most of the vendors to our accounts payable systems and we anticipate having all of the vendors migrated by the end of the year. The long pole in that tent, as no one would be surprised, are some of the circuit vendors which just take longer based upon their nature to get those migrated.

在本季度，我們進行了三個月的付款，與 IP Transit 類似，但在成本方面而不是收入方面。這就是為什麼如果您查看現金流量表，您會看到該行項目大幅波動的原因。截至本季末，根據 TSA 協議，我們仍欠 6,900 萬美元，基本上是 2 個月的活動。當我們現在坐在這裡時，我們已經將大多數供應商遷移到我們的應付帳款系統，我們預計所有供應商將在今年年底前完成遷移。沒人會感到驚訝的是，那個帳篷裡的長桿是一些電路供應商，根據他們的性質，他們需要更長的時間來遷移這些內容。

Right. And that complexion of that on T-Mobile had consolidated its circuit spends for its wireless business in many instances, with the wireline business. So not only do we have to migrate that vendor, we have to segregate the portion of the bill that's attributable to the business we acquired. And T-Mobile has been very cooperative in helping us do that, but it is an arduous task with hundreds of vendors. I mean there are a couple of dozen that really matter in terms of scale. But on -- actually I'm very pleased that we're as far along in transitioning our accounts payable into our own systems and being able to pretty confidently say we'll have virtually all of them within Cogent Systems by year-end. And equally impressive, I think, is the fact that we have migrated the billing platform to our platform and we'll be billing with Cogent bills going forward, actually shutting down the acquired platform that Sprint had used.

正確的。 T-Mobile 的這種情況在許多情況下將其無線業務的電路支出與有線業務合併。因此，我們不僅必須遷移該供應商，還必須將帳單中與我們收購的業務相關的部分分開。 T-Mobile 一直非常配合地幫助我們做到這一點，但這是一項涉及數百家供應商的艱鉅任務。我的意思是，有幾十個在規模上確實很重要。但事實上，我很高興我們在將應付帳款轉移到我們自己的系統方面取得瞭如此大的進展，並且能夠非常自信地說，到年底我們將幾乎將所有應付帳款都納入 Cogent Systems 中。我認為同樣令人印象深刻的是，我們已經將計費平台遷移到我們的平台，我們將使用 Cogent 帳單進行計費，實際上關閉了 Sprint 所使用的收購平台。

Just as a point of reference, we still actually get off-net circuit bills from Verizon, let's say MCI on them. And it's been probably over 15 years since Verizon acquired MCI. If the bill does not say Verizon then it says MCI.

作為參考，我們實際上仍然從 Verizon 獲得網外電路帳單，比如說 MCI。距離 Verizon 收購 MCI 已經過去 15 年多了。如果帳單上沒有寫 Verizon，那麼就會寫 MCI。

That's funny, that's funny. But again, good work kind of getting your system moving over that quickly.

這很有趣，這很有趣。但同樣，出色的工作可以讓您的系統快速移動。

So a separate question. On the data center front, you converted a few more facilities this quarter. I guess are you finding that the broader supply pinch in certain data center markets is increasing interest in your data center facilities, whether it's old Cogent ones or the ones that you're converting for Sprint. Or is there a size and locations and other attributes, power densities, et cetera, I mean they might not necessarily be benefiting from that supply dynamic?

這是一個單獨的問題。在資料中心方面，本季您又改造了一些設施。我想您是否發現某些資料中心市場更廣泛的供應緊張正在增加您對資料中心設施的興趣，無論是舊的 Cogent 設施還是您正在轉換為 Sprint 的設施。或者是否存在尺寸、位置以及其他屬性、功率密度等等，我的意思是他們可能不一定從這種供應動態中受益？

Yes. So I'm going to segregate the two groups of data centers because they are substantially different. The Cogent data centers are all in leased facilities and tend to be smaller, both in size and power. Today, we have, in the Cogent footprint, including the facilities that we've converted, 109 megawatts of power available in those facilities. We still have 41 facilities to convert, and we anticipate about another 100 megawatts coming from those facilities. So we concentrated on the facilities that had the biggest footprint of rack space and power.

是的。因此，我將隔離這兩組資料中心，因為它們有很大不同。 Cogent 資料中心均位於租賃設施中，且無論是規模或功率都較小。如今，在 Cogent 足跡中，包括我們已改造的設施，這些設施中的可用電力為 109 兆瓦。我們仍有 41 個設施需要改造，預計這些設施將再產生約 100 兆瓦的電力。因此，我們專注於機架空間和電力佔用最大的設施。

The second challenge we've had is that these facilities were occupied by unused telecom equipment. As I had mentioned on our previous call, there were over 22,500 bays of equipment that are not in service but physically sitting on the floor. We're removing those right now at the pace of about 400 a week across the footprint. I mean, it's going to take a year, we're trying to accelerate that. We have a footprint today that will support a little over 40,000 bays of equipment. So the challenge has been not the interest in our data centers, but really not disappointing customers and making promises that we can't keep in terms of when these facilities will have vacant space and power that customers can use.

我們遇到的第二個挑戰是這些設施被未使用的電信設備佔用。正如我在之前的電話會議中提到的，有超過 22,500 個設備之間沒有投入使用，而是直接放在地板上。我們現在正在以每週約 400 個的速度在整個足跡中移除這些內容。我的意思是，這需要一年的時間，我們正在努力加快速度。今天，我們的足跡將支援超過 40,000 個設備托架。因此，挑戰不在於我們對資料中心的興趣，而是不要讓客戶失望，並在這些設施何時有空閒空間和電力供客戶使用方面做出我們無法兌現的承諾。

The demand set has been strong. There is, at least for now, a short-term crunch in power availability. I think the locations of our facilities are venturous to companies who are trying to have a more decentralized component to their data center model. So for the largest consumers of data center space, they currently have kind of a 2-tier hierarchy, their own proprietary, very large purpose-built facilities and then a footprint in carrier-neutral facilities for connectivity to the greater Internet. Most of those customers are looking to add a third tier, which would be something between those two extremes and our data centers are very interesting to them. We are in discussions around wholesale capacity in our centers. But again, we're just not in a position to sell at this point.

需求一直很強。至少目前而言，電力供應有短期緊縮。我認為我們設施的位置對於那些試圖在其資料中心模型中擁有更加分散的組件的公司來說是冒險的。因此，對於資料中心空間的最大消費者來說，他們目前擁有一種2 層層次結構、自己專有的、非常大的專用設施，然後在運營商中立的設施中佔據一席之地，以連接到更大的互聯網。大多數客戶都希望添加第三層，這將是這兩個極端之間的東西，我們的資料中心對他們來說非常有趣。我們正在討論我們中心的批發能力。但同樣，我們目前還不能出售。

Our next question comes from Brandon Nispel from KeyBank Capital Markets.

我們的下一個問題來自 KeyBank 資本市場的布蘭登·尼斯佩爾 (Brandon Nispel)。

Could you just go through the Corporate, NetCentric and Enterprise connection that adds this quarter, excluding the SIP impact I was hoping you could give us what the revenue impact of the SIP shutdown could be, because it did sound like the September 30 shutdown.

您能否簡單介紹一下本季新增的Corporate、NetCentric 和Enterprise 連接，排除SIP 的影響。我希望您能給我們SIP 關閉可能對收入產生的影響，因為聽起來確實像是9 月30 日的關閉。

And then can you help us sort of bridge from 3Q to 4Q from a revenue standpoint across the 3 customer segments. And we talked already about the 11,000 non-core connections that you still have, how much of that will be end-of-life at the end of next quarter. It would be helpful to get the trajectory of revenue, right?

然後，從收入的角度來看，您能否幫助我們在 3 個客戶群之間建立從第 3 季到第 4 季的橋樑。我們已經討論過您仍然擁有的 11,000 個非核心連接，其中有多少將在下個季度末終止。獲得收入軌跡會有幫助，對吧？

Yes. So I'll start by taking those in reverse order Brandon. The first one is the 11,000 non-core connections that we have are across 23 product categories, they will go away much slower. SIP was the largest of these categories. That was the one that also had the most notice requirement because it was regulated, at least one customer protested to the FCC that the 1-year notice that they received was inadequate and wanted an extension, which was not granted. But out of the 19,000 non-core connections, we went after the biggest group first, the SIP. And then for the others, products are much more heterogeneous and the path will be much longer.

是的。所以我將從相反的順序開始，布蘭登。第一個是我們在 23 個產品類別中擁有的 11,000 個非核心連接，它們消失的速度會慢得多。 SIP 是這些類別中最大的。這也是具有最多通知要求的一項，因為它受到監管，至少有一名客戶向 FCC 提出抗議，稱他們收到的 1 年通知不夠充分，希望延期，但未獲批准。但在 19,000 個非核心連結中，我們首先關注最大的群體，即 SIP。對於其他產品來說，產品更加異質，路徑也會更長。

I would suspect we'll see a reduction every quarter, but it's probably going to take till the end of '26 until these non-core products are completely eliminated. It is a major component of our cost savings.

我懷疑每個季度我們都會看到減少，但可能要到 26 年底才能完全消除這些非核心產品。這是我們節省成本的一個主要組成部分。

I can repeat the customer connections for you. So the SIP connections were 8,486 at the end of last quarter. Those are all non-core connections. When you look at Corporate, NetCentric and Enterprise of the 8,486 connections, 5,006 were Corporate. 1,088 were NetCentric and 2,392 were Enterprise, and that's the numbers at June 30, 2023. And obviously, at 9/30, those numbers are zero.

我可以為您重複客戶聯絡方式。因此，上季末 SIP 連線數為 8,486。這些都是非核心連結。當您查看 8,486 個連線中的 Corporate、NetCentric 和 Enterprise 時，會發現 5,006 個是企業連線。 NetCentric 為 1,088，Enterprise 為 2,392，這是截至 2023 年 6 月 30 日的數字。顯然，到 9 月 30 日，這些數字為零。

Yes. So for the remaining 11,000 non-core connections, they are spread across all three customer types. I will say that there's less NetCentric even than there was for SIP. So it's probably roughly 80% of it is in the Enterprise base and Corporate base and less than 20% of it would be in NetCentric.

是的。因此，對於剩餘的 11,000 個非核心連接，它們分佈在所有三種客戶類型中。我想說，NetCentric 的作用甚至比 SIP 還要少。因此，大約 80% 的資料可能位於企業基地和企業基地，不到 20% 位於 NetCentric。

And could I just follow up? Did you guys say that these products were end-of-life at the end of September, and so there's a revenue impact in the fourth quarter. I think that's what I'm trying to get at because obviously, this quarter, I mean trends were below expectations, and it doesn't make sense that it was the SIP impact that, that was shut down at the end of the quarter. So just trying to understand sort of where we should be going and looking for in terms of total revenue next quarter. So there isn't sort of a big headline that, Dave.

我可以跟進嗎？你們是否說過這些產品已於 9 月底停產，因此會對第四季的營收產生影響。我認為這就是我想要表達的意思，因為很明顯，本季度，我的意思是趨勢低於預期，而 SIP 的影響在本季度末被關閉，這是沒有意義的。因此，我只是想了解下季度我們應該去哪裡並尋找總收入。所以戴夫，沒有什麼大標題。

Yes. Well, I might disagree with that statement. But we ended up pushing these customers on almost a weekly basis. reminding them this product was going away. So the stragglers were shut off at the end of the quarter. So the product is completely gone. It is end-of-life, but the revenue was declining ever since we acquired the business. Actually was declining under T-Mobile's ownership, and it was a big contributor to why the revenue run rate at signing was $560 million and was down to about $485 million at closing 9 months later. A lot of it was one-off in these non-core products and in SIP, in particular, We, I think, push even more aggressively. So while the unit count was down materially, the revenue impact from these end-of-life products in the third quarter was not very material.

是的。嗯，我可能不同意這個說法。但我們最終幾乎每週都會向這些客戶推銷。提醒他們該產品即將消失。因此，落後者在季度末被關閉。所以產品就完全消失了。它已經結束了，但自從我們收購該業務以來，收入一直在下降。事實上，在T-Mobile 的收購下，該公司的營收一直在下降，這也是為什麼簽約時的收入運行率為5.6 億美元，而在9 個月後關閉時收入運行率下降至約4.85 億美元的一個重要原因。在這些非核心產品和 SIP 中，很多都是一次性的，特別是，我認為，我們會更積極地推動。因此，儘管單位數量大幅減少，但這些報廢產品對第三季收入的影響並不是很大。

Got it. Can I just do one more. Of the 1,000 in wavelength in terms of backlogs, what percentage of those were signed during the quarter? And then what do you -- what's the average sort of provisioning time line on the 1,000 that you have in backlog?

知道了。我可以再做一件事嗎？在 1,000 個波長的積壓訂單中，本季簽署的百分比是多少？然後你會做什麼——你積壓的 1,000 個訂單的平均供應時間是多少？

So I would say the majority of them were signed in the quarter. Some were actually signed in the previous quarter, Q2, right after closing. And an average is very misleading on provisioning times because it's dependent on the two data centers that need to be connected, being wave-enabled. It is why I tempered by backlog comment on saying some of these may never install because people may get frustrated. They are not going to wait 14 months until we have all of the data centers wave-enabled. We increased the number of wave-enabled facilities by about 25% in the quarter. I think we'll see that pace accelerate.

所以我想說其中大部分是在本季簽署的。有些實際上是在上一季（即第二季）交易結束後簽署的。平均值在配置時間上非常具有誤導性，因為它取決於需要連接、啟用波的兩個資料中心。這就是為什麼我對積壓評論表示其中一些可能永遠不會安裝，因為人們可能會感到沮喪。他們不會等待 14 個月，直到我們讓所有資料中心都啟用 Wave。本季我們將支援波浪的設施數量增加了約 25%。我認為我們會看到這一步伐加快。

If you looked at an average, it's probably more than 150 days because you've got a subset that are in the kind of 50-day provisioning window, both ends are in sites we can do today. Some are more like 120 days, I mean one site is in the shorter window and one site is in a longer window. And then we've got waves to sites that are not yet wave-enabled. Now we call customers, we're working as quickly as we can. They still wanted to sign orders but some of those may not install because I'm not convinced the customer is going to wait 6, 7 months to get a wave. And there could be a subset of those that take that all.

如果您查看平均值，可能會超過 150 天，因為您有一個子集處於 50 天的配置視窗中，兩端都位於我們今天可以完成的網站中。有些更像是 120 天，我的意思是一個站點處於較短的視窗中，一個站點處於較長的視窗中。然後我們向尚未啟用 Wave 的網站發送 Waves。現在我們打電話給客戶，我們正在盡快工作。他們仍然想簽署訂單，但其中一些可能無法安裝，因為我不相信客戶會等待 6、7 個月才能收到訂單。可能有一個子集可以實現這一切。

All right. We don't hear any responses from Brandon so we're going to move on to Phil Cusick from JPMorgan and Chase.

好的。我們沒有聽到布蘭登的任何回應，因此我們將轉向摩根大通和大通的菲爾庫斯克。

This is Jerome on for Phil. A couple of follow-ups, if I could. You mentioned that corporate grew this quarter. Could you quantify that for us has there really been any change in trajectory. Could you talk about customer conversations and corporate, are the weaker markets starting to come along? And how should we think about the potential for growth to pick up?

這是傑羅姆替菲爾發言。如果可以的話，請進行一些後續行動。您提到公司本季有所成長。您能否量化一下，對於我們來說，軌跡是否真的發生了任何變化？您能否談談客戶對話和企業，疲軟的市場是否開始出現？我們該如何看待成長的潛力？

Second, could you just talk about the level of SG&A in 3Q and how that should look in 4Q, given some of the cost cutting that's going on, how should we think about overall margins heading into the fourth quarter and into 2024.

其次，您能否談談第三季的銷售管理費用水準以及第四季度的情況，考慮到正在進行的一些成本削減，我們應該如何考慮進入第四季度和 2024 年的整體利潤率。

Yes. So on corporate growth, I would say it was very similar to the growth rates that we had had in Q2. That's kind of an underlying kind of same-store growth rate of about 1% year-over-year, far less than the kind of 10%, 11% that we had long-term average. We are seeing slow but consistent improvement in corporate buying cycles and expect that corporate growth should continue to improve the non-core services. And answering Brandon's question that are heavily weighted towards Corporate and Enterprise will continue to decline, but probably not nearly as precipitously as they did this quarter.

是的。因此，就企業成長而言，我想說這與我們第二季的成長率非常相似。這是一種潛在的同店成長率，約 1%，遠低於我們長期平均的 10%、11%。我們看到企業購買週期緩慢但持續改善，並預期企業成長應繼續改善非核心服務。在回答布蘭登的問題時，對企業和企業的關注度將繼續下降，但可能不會像本季那樣急劇下降。

So you may see a low customer connection count but you will see, I think, revenue growth probably continue to be positive from this point forward and SIP was the largest of these non-core products. And then in terms of SG&A, as Tad mentioned, we had record low bad debt expense I think we're probably expecting that to revert back to historical norms. And then we are continuing to continue to groom head count and expect to see some underlying improvement.

因此，您可能會看到客戶連線數量較少，但我認為，您會看到，從現在開始，收入成長可能會繼續呈正成長，而 SIP 是這些非核心產品中最大的產品。然後，就SG&A 而言，正如泰德所提到的，我們的壞帳支出創歷史新低，我認為我們可能預計會恢復到歷史正常水平。然後我們將繼續增加人員數量，並期望看到一些根本性的改善。

Yes. So the Q3 run rate is about reflective of our current run rate as we exited the quarter.

是的。因此，第三季的運行率大約反映了我們在本季結束時目前的運行率。

Our next question comes from Michael Rollins from Citi.

我們的下一個問題來自花旗銀行的麥可‧羅林斯。

Just a couple of questions. Going back to some of the comments from earlier in the call. And then just one on the business. So first, in the same way you just -- couple of questions ago, recapped the breakdown of what happened with the SIP product. Could you do the same with the T-Mobile commercial services agreement in terms of just recapping and summarizing in total what happened, which customer verticals that volume came out of? And what's left going forward for that?

只是幾個問題。回到之前電話會議中的一些評論。然後就是關於生意的一件事。首先，就像您剛才提出的幾個問題一樣，回顧一下 SIP 產品發生的情況。您能否對 T-Mobile 商業服務協議做同樣的事情，重述和總結所發生的事情以及該數量來自哪些客戶垂直領域？未來還剩下什麼？

And then secondly, with respect to the reclass of the operating leases to the -- or operating lease to the capital lease. If I'm doing the math right, it looks like it's about 3 years in terms of the change in the cost of the lease versus how much you increase the balance sheet accounts by. And just curious if that's something that once it expires, it goes away? Or is this something that needs to get renewed? Like how should we be thinking about what needs to happen for this lease after you get through the next few years of the balance that you've increased?

其次，關於將經營租賃重新分類為－或將營業租賃重新分類為資本租賃。如果我算得對的話，從租賃成本的變化與資產負債表帳戶增加的數量來看，這似乎是大約 3 年的時間。只是好奇這是否是一旦過期就會消失的東西？或者這是需要更新的東西嗎？例如，在您度過未來幾年增加的餘額後，我們應該如何考慮該租賃需要發生什麼？

And then I have an operating question. I'll follow up with.

然後我有一個操作問題。我會跟進。

That's actually a very good question, Mike. And you did your arithmetic quickly. That lease ends at the end of 2026, it will not be renewed. It does not need to be replaced. It is completely uneconomic and it is for an IRU that is not even fully in use and is totally redundant to fiber that we have today is something that Sprint signed almost 35 years ago and had CPIs. The end of the lease is our -- what we have the ability to exit it in about 3 years at the end of '26. And we'll exit it as quickly as possible. The lease is way out of market as I indicated, and we indicated on the previous earnings call, there's about $150 million of uneconomic value in that lease set for out of market, and it was a reduction in the gain in our purchase of the assets.

這實際上是一個非常好的問題，麥克。你算得很快。租約將於 2026 年底結束，不會續約。不需要更換。這是完全不經濟的，對於 IRU 來說，它甚至還沒有完全投入使用，並且對於我們今天擁有的光纖來說是完全多餘的，這是 Sprint 大約 35 年前簽署的，並且有 CPI。租約的結束是我們的——我們有能力在 26 年底的大約 3 年內退出。我們會盡快退出。正如我所指出的，該租賃已脫離市場，而且我們在先前的財報電話會議上表示，該租賃在脫離市場時具有約 1.5 億美元的非經濟價值，這減少了我們購買資產的收益。

It's just something we had to take. And I'm sure as T-Mobile would say, that's why we're paying them $700 million. We took some bad stuff, and that's probably the single worst item. It clearly meets the test to be a capital lease. It is for fiber and it's something that will not be replaced.

這只是我們必須接受的事情。我確信正如 T-Mobile 所說，這就是我們向他們支付 7 億美元的原因。我們拿了一些不好的東西，這可能是最糟糕的東西。它顯然符合資本租賃的測試。它是用於纖維的，是不會被取代的東西。

I can take the -- CSA. So, under the commercial services agreement with T-Mobile, and this is just like a regular customer, not under the IP Transit services agreement. So the revenue was $7.3 million in the second quarter and $8 million in the third quarter. The connections, this is all NetCentric revenue, the connections were 8,028 at the end of the second quarter and 4,661 at the end of the third quarter. So the revenue was about the same and the connections dropped to about 50%.

我可以參加——CSA。因此，根據與 T-Mobile 的商業服務協議，這就像普通客戶一樣，而不是根據 IP Transit 服務協議。因此，第二季的營收為 730 萬美元，第三季的營收為 800 萬美元。連線數，這是NetCentric的全部收入，第二季末的連線數為8,028個，第三季末的連線數為4,661個。所以收入大致相同，連線數下降到 50% 左右。

And Mike, to give you a little more granularity, there are really two primary services that are not covered by the transit agreement. The first is co-location. These are T-Mobile bays or racks that are located in our facilities that we are removing at the request of T-Mobile but there's a long tail on those. And then the second are the VPN services, the Ethernet point-to-point services that are providing backhaul for T-Mobile through our network, and they are grooming those circuits as well. So we would expect the unit count to continue to come down. We also do expect the revenue to eventually come down. But I think what has been going on in the short term has been grooming units more than a revenue focus.

麥克，為了給您更詳細的信息，實際上有兩項主要服務未包含在運輸協議中。第一個是共址。這些是位於我們設施中的 T-Mobile 托架或機架，我們應 T-Mobile 的要求將其拆除，但這些托架或機架很長。第二個是 VPN 服務，透過我們的網路為 T-Mobile 提供回程的乙太網路點對點服務，他們也在整理這些電路。因此，我們預計單位數量將繼續下降。我們也確實預期收入最終會下降。但我認為，短期內發生的事情更多的是對部門的培訓，而不是對收入的關注。

And so even though the volume fell significantly quarter-over-quarter, would you expect -- as you're describing a more measured roll down of this over the next few years?

因此，儘管銷量逐季度大幅下降，但您是否預計 - 正如您所描述的那樣，在未來幾年內銷量會更加謹慎地下降？

I don't have visibility that far out. That would really be a question you need to ask T-Mobile because they can cancel these with 30 days notice. I do have visibility to this quarter, and it looks very similar to Q3. Q4 should be similar to Q3 in terms of revenue but with fewer units.

我看不到那麼遠的地方。這確實是一個你需要問 T-Mobile 的問題，因為他們可以提前 30 天通知取消這些服務。我確實了解這個季度，它看起來與第三季度非常相似。第四季的收入應該與第三季類似，但數量較少。

And then just moving to the operating side of the business, and thanks for all that details, you made a comment earlier in the discussion about how customers on the NetCentric side are really pushing to much higher levels of switching. I think you mentioned 100 gig, 400 gig. And as customers are moving up to these higher port speed, what does that mean in terms of volume being a lesser indicator of revenue because customers are pushing more volume, they're just doing it through fewer connections. And is this a short-term blip where this type of grooming or optimization happens quickly on the volume side? Or do you see, for whatever the reason, that there might be an ongoing difference between the way the revenue and NetCentric performs and the way volume performs because more customers across more ports adopt these higher speeds?

然後轉向業務的營運方面，感謝您提供的所有詳細信息，您在之前的討論中就 NetCentric 方面的客戶如何真正推動更高水平的轉換發表了評論。我想你提到了 100 gig、400 gig。隨著客戶轉向更高的連接埠速度，這意味著數量不再是收入指標，因為客戶正在推動更多的數量，他們只是透過更少的連線來做到這一點。這種類型的修飾或優化在數量方面迅速發生，這是否是短期現象？或者您是否認為，無論出於何種原因，收入和 NetCentric 的表現方式與數量表現方式之間可能存在持續差異，因為更多連接埠上的更多客戶採用了這些更高的速度？

Yes. So we've been through two similar grooming exercises in the past 20 years. The primary driver of these exercises is to reduce cross-connect costs. So when you say volume, there are really two different volumes. Volume of connections may actually go down as people consolidate 100 gig ports into 400 gig ports and the remnant of the 10 gig to 100 gig consolidation continues. And then the second volume measure is the number of bits flowing. So the average price per bit has declined for 23 years, almost 23.5 years at Cogent since we've been in business and will continue to decline, but the bit volume growth has outpaced that, allowing us to achieve an average of about 9% NetCentric revenue growth in a flat addressable market.

是的。因此，在過去 20 年裡，我們經歷了兩次類似的美容活動。這些活動的主要驅動力是降低交叉連接成本。所以當你說體積時，其實有兩個不同的體積。隨著人們將 100 個千兆端口合併為 400 個千兆端口，並且 10 個千兆到 100 個千兆的整合仍在繼續，連接量實際上可能會下降。第二個量度是流動的位數。因此，每比特的平均價格已經下降了23 年，Cogent 自我們開展業務以來已經下降了近23.5 年，並​​將繼續下降，但比特量的增長速度超過了這一水平，使我們能夠實現約9%的平均NetCentric在平坦的目標市場中實現收入成長。

I think what will continue to happen over the next couple of years as we will see an acceleration in the 100 to 400 gig conversion. Of course, it cuts your cross-connect cost by 75%. And the cost of those 400 gig pluggable optics has come down meaningfully in the past year. And today, I would say, only a couple of percent of NetCentric ports are at 400 gig. We have a long way to go in this grooming cycle. That will depress the number of connections, [reports sold], but will not depress revenue. We literally had the same exact phenomenon when we went from multiple 10 gig to a lot fewer 100-gig interfaces. And I think that's happening.

我認為未來幾年將會繼續發生什麼，因為我們將看到 100 到 400 演出的加速轉換。當然，它可以使您的交叉連接成本降低 75%。去年，這些 400 GB 可插拔光學元件的成本大幅下降。我想說，今天只有百分之幾的 NetCentric 連接埠達到 400 GB。在這個美容週期中，我們還有很長的路要走。這將減少連線數量，[已售出的報告]，但不會減少收入。當我們從多個 10 G 介面轉向更少的 100 G 介面時，我們確實遇到了同樣的現象。我認為這種情況正在發生。

We're also seeing on the wavelength side, customers looking to take 400 gig wavelength. Our network is equipped to be able to support that. We will be selling those. We have some of those in the funnel that I had described. And I think customers increasingly are sensitive to cross-connect expense.

我們也看到在波長方面，客戶希望採用 400 gig 波長。我們的網路能夠支持這一點。我們將出售這些。我們在我所描述的漏斗中找到了其中一些。我認為客戶對交叉連接費用越來越敏感。

That concludes our question-and-answer session. I'd now like to hand back over to Mr. Dave Schaeffer for any closing remarks.

我們的問答環節到此結束。現在我想請 Dave Schaeffer 先生致閉幕詞。

Well, thank you all very much. We'll be chatting if anyone has any follow-up questions, and we'll talk soon. Thank you all very much. Take care. Bye-bye.

嗯，非常感謝大家。如果有人有任何後續問題，我們會聊天，我們很快就會討論。非常感謝大家。小心。再見。

Thank you for attending today's session. You may now all disconnect your lines.

感謝您參加今天的會議。現在你們都可以斷開線路了。