Switch & Data Reports Second Month of Positive Net Income

National colocation provider Switch & Data on Wednesday reported two consecutive quarters of positive net income and projects generating a profit for the year.

Switch & Data’s largest investors are Seaport Capital and The CapStreet Group. It reported positive net income for March and April.

Switch & Data, a privately held firm based in Tampa, Fla., also says it is generating annualized monthly revenue of $74 million, exceeding its projections.

Mario Galvez, marketing vice president with Switch & Data, says the acquisition of an Internet business where ISPs swap traffic accelerated the company’s jump to profitability. Defining net income in layman’s terms, Galvez says there is more cash in the bank at the end of the month than at the beginning of the month.

Asked about possible acquisition targets, Galvez declined to get into the specifics, but notes, “We are looking at several opportunities.”

Switch & Data acquired PAIX.net in March for $40 million. PAIX facilities are hubs for swapping Internet traffic and monitoring network quality metrics, such as packet delays.

Switch & Data and PAIX, formerly owned by Metromedia Fiber Network Inc., had facilities in three of the same buildings.

PAIX represents a new business venture for Switch & Data, which has traditionally played the role of a high-tech landlord across the country. Switch & Data provides space, power, interconnection capabilities and related services to 442 telecommunications carriers, ISPs, enterprises and managed service providers, such as application service providers.

A third of its customers are ISPs.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines