Switch Inc (NYSE: SWCH) reported weaker-than-expected earnings for its third quarter on Tuesday. The company reiterated FY18 sales guidance of $405-$408 million
The Las Vegas-based company reported that quarterly revenue came in at $102.8 million, compared to $97.7 million for the same quarter in 2017.
Operating income of $12.5 million, compared to $25.5 million for the same quarter last year. Operating income in the third quarter of 2018 includes the impact of $7.6 million in equity-based compensation expense, compared to $1.3 million in the same quarter of 2017, and $6.1 million in additional depreciation.
Net income was $4.7 million, compared to $16.5 million for the same quarter in 2017. Net income in the third quarter of 2018 includes $7.6 million in equity-based compensation expense, compared to $1.3 million in the same quarter of 2017.
Switch President Thomas Morton exulted, "Switch signed over 450 contracts in the third quarter of 2018, equating to over 18 megawatts, with total contract value of approximately $135 million.
"As we increase capacity of colocation space, we continue adding new logos, while existing customers continue to expand their deployments within the Switch ecosystem."
Tuesday, Switch announced that its Board of Directors has declared a cash dividend of $0.0147 per share of Switch's Class A common stock for the third quarter of 2018. The dividend will be payable on December 6, to all stockholders of record as of the close of business on November 26.
Switch shares fell $1.27, or 13.7%, to $8.00
