Savvis Delivers Year-over-Year Revenue Growth of 13% and Adjusted EBITDA Growth of 17% for Third Quarter 2010
By Savvis Inc., PRNETuesday, October 26, 2010
Managed Services revenue growth of 30% YoY and 10% QoQ
ST. LOUIS, October 27, 2010 - Savvis, Inc. (Nasdaq: SVVS), a global leader in cloud infrastructure and
hosted IT solutions for enterprises, today reported its third quarter 2010
financial results, with revenue of US$241.9 million, compared to US$213.2
million in the third quarter of 2009. Adjusted EBITDA* was US$59.7 million,
compared to US$51.2 million of adjusted EBITDA in the third quarter of 2009.
"Savvis continues to deliver on its stated goal of exiting the year at a
quarterly sequential double-digit run rate for both revenue and adjusted
EBITDA growth," said Jim Ousley, chairman and chief executive officer for
Savvis. "The company-wide changes and improvements we have made over the past
year, specifically in sales and marketing, are now flowing through to our
results. Based on the strength we continue to see in bookings, installs and
renewals, we expect to continue on this path throughout 2011."
Income from continuing operations for the third quarter of 2010 was
US$3.5 million, compared to US$4.5 million in the third quarter of 2009.
Savvis reported a net loss of (US$26.2) million, or (US$0.47) per share, in
the third quarter of 2010, and this amount includes approximately US$11.8
million in costs related to the company's debt refinancing, which occurred
during the quarter. Savvis had a net loss of (US$9.9) million, or (US$0.18)
per share, in the third quarter of 2009.
Third Quarter Financial Results
US$ in millions Three months ended
9/30/10 6/30/10 9/30/09
Hosting $176.7 $158.2 $148.1
Network $65.2 $63.6 $65.1
----- ----- -----
Total revenue $241.9 $221.8 $213.2
------ ------ ------
Cost of revenue(1) $131.6 $120.2 $117.9
SG&A expenses(1) (2) $56.5 $56.9 $52.6
Non-cash, equity-based compensation(1) $5.4 $6.5 $8.5
Income from continuing operations $3.5 $2.2 $4.5
Net income (loss) from continuing
operations ($26.2) ($13.3) ($9.9)
Income (loss) from discontinued
operations, net of income tax(3) ($0.0) ($0.1) --
Net income (loss) ($26.2) ($13.4) ($9.9)
Adjusted EBITDA $59.7 $54.7 $51.2
Adjusted EBITDA margin 25% 25% 24%
(1) Both cost of revenue and SG&A expenses exclude depreciation,
amortization and accretion and include non-cash, equity-based
compensation. Total non-cash, equity-based compensation
attributed to cost of revenue for the three months ended Sept. 30,
2010, June 30, 2010, and Sept. 30, 2009, was $1.5 million, $1.5
million and $1.5 million and to SG&A expenses was $3.9 million, $5.1
million and $7.0 million, respectively. (2) SG&A expenses include
acquisition and integration costs of $0.5 million and $3.5 million
for the three months ended Sept. 30, 2010, and June 30, 2010,
respectively. (3) Includes losses from the application services
business acquired from Fusepoint, which is classified as an asset
held for sale at Sept. 30, 2010. Total losses attributed to net
income for the three months ended Sept. 30, 2010, and June 30, 2010,
were ($9,000) and ($88,000), respectively.
Third Quarter Overview
Total Savvis revenue for the third quarter was US$241.9 million, up 9%
compared to second quarter 2010 revenue of US$221.8 million. Revenue improved
in the third quarter, as the company continued to exceed its internal
bookings, installs and renewals targets for 2010.
Adjusted EBITDA was US$59.7 million for the third quarter of 2010, up 9%
compared to US$54.7 million of adjusted EBITDA in the second quarter of 2010.
Growth in adjusted EBITDA continues to track the company's quarterly
sequential improvements in revenue.
Both revenue and adjusted EBITDA included a full-quarter of contribution
from the Fusepoint acquisition, which closed on June 16, 2010.
Hosting
Percent of
US$ in millions Revenue Three months ended
9/30/10 6/30/10 9/30/09
Managed Services 46% $81.5 $73.9 $62.8
Percentage change 10% 30%
Colocation 54% $95.2 $84.3 $85.3
Percentage change 13% 12%
Total Hosting
revenue $176.7 $158.2 $148.1
Percentage change 12% 19%
In the third quarter, Managed Services revenue grew as enterprises in the
company's targeted verticals looked to outsourcing as a way to improve the
benefit they receive from technology solutions while reducing their overall
spend and time to implementation. Managed services revenue includes Savvis
Symphony Cloud solutions, such as Open, Dedicated and Virtual Private Data
Center.
Colocation revenue was up both quarterly and annually in the third
quarter, due to the return of enterprise client demand, lower churn and an
improved fill rate. The trend of combining colocation with the company's
managed services and network to create a complete solution, continued during
the quarter.
Network
Percent of
US$ in millions Revenue Three months ended
9/30/10 6/30/10 9/30/09
Core(1) 56% $36.4 $33.5 $28.7
Percentage change 9% 27%
Sustaining(2) 44% $28.8 $30.1 $36.4
Percentage change (4%) (21%)
Total Network
revenue $65.2 $63.6 $65.1
Percentage change 3% --
(1) Core network includes revenue from Thomson Reuters and from other
financial vertical and data center clients, who also purchase
bundled network and hosting services.
(2) Sustaining network includes revenue from services that are either
in slower growth or declining markets or are not directly tied to
the future growth of the company's network and hosting businesses.
As expected, the overall Network business showed quarterly sequential
revenue growth in the third quarter. Core Network revenue continued to grow,
while the decline in Sustaining Network revenue continued to slow. The
majority of Savvis' hosting clients continued to take the company's network
offering, as 96% use Network as part of an end-to-end solution.
Other Highlights
The Financial Vertical represented 28% of total revenue, or US$67.0
million, in the third quarter of 2010. Revenue in the quarter was up 11%,
compared to the second quarter of 2010 and was up 24%, compared to the third
quarter of 2009. Financial firms have begun making additional investments in
infrastructure, in order to meet new industry-related regulatory
requirements. Savvis has benefitted from this interest in outsourcing, by
providing both new and existing clients with the services they require in
centrally located data centers.
Cash Flow and Balance Sheet
Net cash provided by operating activities was US$35.7 million in the
third quarter of 2010, compared to US$45.0 million in the third quarter of
2009. Cash capital expenditures for the third quarter of 2010 totaled US$56.6
million.
The company's cash position at Sept. 30, 2010, was US$88.0 million,
compared to US$118.7 million at June 30, 2010. As of Sept. 30, 2010, the
long-term debt and capital leases for Savvis (net of current portion) totaled
US$747.7 million, up from US$712.8 million as of June 30, 2010.
In August, the company closed its senior secured credit facilities, which
include a US$550.0 million term loan, maturing in 2016, and a US$75.0 million
revolving credit facility, maturing in 2014. The company also completed a
cash tender offer for its 3% Convertible Senior Notes due May 2012, with
approximately 99% of the outstanding US$345.0 million Notes tendered.
Financial Outlook
"With strong revenue and adjusted EBITDA growth reported in the third
quarter, we have been able to raise and tighten our revenue and adjusted
EBITDA guidance for 2010," said Greg Freiberg, chief financial officer for
Savvis. "Due to successful sales and marketing efforts, we have seen strong
revenue growth this year. We are now beginning to see commensurate leverage
in adjusted EBITDA and expect both of these trends to continue into 2011."
Savvis now expects the following for full year 2010:
-- Revenue of US$925 to US$930 million, increasing from previous guidance
of US$917 to US$927 million
-- Adjusted EBITDA of US$225 to US$235 million, narrowing from previous
guidance of US$220 to US$240 million
-- Total cash capital expenditures of US$190 to US$210 million
-- Cash interest expense (net) of approximately US$50 million, decreasing
from previous guidance of US$55 to US$60 million
Investor Conference Call
Savvis will webcast an investor conference call at 10:00 a.m. ET today,
Oct. 27, 2010. Both the webcast and supporting presentation will be available
at savvis.net on the Investor Relations page. A live conference call will be
available at +1-866-261-2650 for analysts in North America or +1-703-639-1221
for international analysts. A replay will be available on the website for six
months. Investors may also access the replay by dialing (888)-266-2081 in
North America or +1-703-925-2533 internationally and using the access code
1487309 through Monday, Nov. 8.
About Savvis
Savvis, Inc. (NASDAQ: SVVS) is a global leader in cloud infrastructure
and hosted IT solutions for enterprises. More than 2,500 unique clients,
including 30 of the top 100 companies in the Fortune 500, use Savvis to
reduce capital expense, improve service levels and harness the latest
advances in cloud computing. For more information, please visit savvis.net.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from Savvis' expectations. Certain factors that could
adversely affect actual results are set forth as risk factors described in
Savvis' SEC reports and filings, including its annual report on Form 10-K for
the year ended Dec. 31, 2009, and subsequent filings. Those risk factors
include, but are not limited to, uncertainties in economic conditions,
including conditions that could pressure enterprise IT spending; introduction
of, demand for and market acceptance of Savvis' products and services;
whether or not Savvis is able to sign additional outsourcing deals;
variability in pricing for those products and services; merger and
acquisition activity by Savvis customers or other customer activity that
affects the level of business done with Savvis; rapid evolution of
technology; changes in the operating environment; and changes or proposed
changes in, or introduction of new, regulatory schemes or environments that
impact Savvis and/or its customers' businesses. The forward-looking
statements contained in this document speak only as of the date of
publication, Oct. 27, 2010. Subsequent events and developments may cause the
company's forward-looking statements to change, and the company will not
undertake efforts to revise those forward-looking statements to reflect
events after this date.
* Non-GAAP Measures
Savvis includes information pertaining to certain non-GAAP measures in
conjunction with reporting of its quarterly and year-end financial results.
Adjusted EBITDA represents income from continuing operations before
depreciation, amortization and accretion, and non-cash, equity-based
compensation and excludes acquisition and integration costs. We have included
information concerning adjusted EBITDA because we believe that in our
industry such information is a relevant measurement of a company's operating
financial performance and liquidity. Leveraged free cash flow represents
adjusted EBITDA less cash paid acquisition and integration costs, less cash
capital expenditures and less cash interest, net. We have included
information concerning leveraged free cash flow because we believe that in
our industry such information is a relevant measurement of a company's
operating financial performance and liquidity. We do not provide forward
looking guidance for certain financial data, such as income from operations,
depreciation, amortization and accretion, non-cash, equity-based
compensation, and interest income. As a result, we are unable to provide a
reconciliation of non-GAAP measures, such as adjusted EBITDA and leveraged
free cash flow, for forward looking data, including 2010 full-year guidance.
The calculations of adjusted EBITDA and leveraged free cash flow are not
specified by United States generally accepted accounting principles. Our
calculations of adjusted EBITDA and leveraged free cash flow may not be
comparable to similarly-titled measures of other companies.
SAVVIS, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2010 2009 2010 2009
---- ---- ---- ----
Revenue $241,901 $213,211 $680,244 $654,595
Operating
Expenses:
Cost of revenue
(including non-
cash, equity-
based
compensation of
$1,536, $1,473,
$4,657 and
$4,430) (1) 131,597 117,945 371,186 359,907
Sales, general
and
administrative
expenses
(including
non-cash,
equity-based
compensation of
$3,899, $7,003,
$15,776 and
$18,722) (1) 56,500 52,551 165,096 152,704
Depreciation,
amortization
and accretion 50,335 38,201 133,513 112,335
------ ------ ------- -------
Total Operating
Expenses 238,432 208,697 669,795 624,946
------- ------- ------- -------
Income from
Continuing
Operations 3,469 4,514 10,449 29,649
Loss on debt
extinguishment 8,735 - 8,735 -
Other income and
expense 21,845 13,887 52,935 43,268
------ ------ ------ ------
Income (Loss)
from Continuing
Operations
before
Income Taxes (27,111) (9,373) (51,221) (13,619)
Income tax
(benefit)
expense (886) 557 (307) 1,868
---- --- ---- -----
Income (Loss)
from Continuing
Operations, net
of Income Taxes (26,225) (9,930) (50,914) (15,487)
------- ------ ------- -------
Income (loss)
from
discontinued
operations, net
of income taxes (9) - (98) -
--- --- --- ---
Net Income
(Loss) $(26,234) $(9,930) $(51,012) $(15,487)
======== ======= ======== ========
Income (Loss)
per Share from
Continuing
Operations
Basic earnings
per share $(0.47) $(0.18) $(0.92) $(0.29)
====== ====== ====== ======
Diluted earnings
per share $(0.47) $(0.18) $(0.92) $(0.29)
====== ====== ====== ======
Weighted-
Average Common
Shares
Outstanding
Basic 55,282 53,960 55,453 53,724
====== ====== ====== ======
Diluted 55,282 53,960 55,453 53,724
====== ====== ====== ======
(1) Excludes depreciation, amortization and accretion, which is reported
separately.
SAVVIS, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2010 2009
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $88,048 $160,815
Trade accounts receivable, net 74,130 45,754
Prepaid expenses and other current assets 34,407 21,217
Total Current Assets 196,585 227,786
------- -------
Property and equipment, net 841,083 783,852
Goodwill 77,208 -
Intangible assets 20,864 404
Other non-current assets 23,156 12,716
------ ------
Total Assets $1,158,896 $1,024,758
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Payables and other trade accruals $64,849 $52,710
Current portion of long-term debt and
lease obligations 18,901 17,479
Other accrued liabilities 74,399 68,314
Total Current Liabilities 158,149 138,503
------- -------
Long-term debt, net of current portion 531,283 376,089
Capital and financing method lease
obligations, net of current portion 216,429 223,897
Other accrued liabilities 79,340 76,452
Total Liabilities 985,201 814,941
------- -------
Stockholders' Equity:
Common stock 558 545
Additional paid-in capital 871,795 862,834
Accumulated deficit (685,441) (634,429)
Accumulated other comprehensive loss (13,217) (19,133)
Total Stockholders' Equity 173,695 209,817
------- -------
Total Liabilities and Stockholders' Equity $1,158,896 $1,024,758
========== ==========
SAVVIS, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2010 2009 2010 2009
---- ---- ---- ----
Cash Flows from
Operating
Activities:
Net income
(loss) $(26,234) $(9,930) $(51,012) $(15,487)
(Income) loss
from
discontinued
operations, net
of income taxes (9) - (98) -
--- --- --- ---
Income (loss)
from continuing
operations, net
of income taxes (26,225) (9,930) (50,914) (15,487)
Reconciliation
of net income
(loss) from
continuing
operations to
net cash
provided by
operating
activities:
Depreciation,
amortization
and accretion 50,335 38,201 133,513 112,335
Non-cash,
equity-based
compensation 5,435 8,476 20,433 23,152
Accrued
interest, net 2,279 4,016 3,617 6,280
Amortization of
debt discount 1,774 3,615 9,386 10,628
Loss on debt
extinguishment 7,535 - 7,535 -
Other, net 3,642 1,469 4,235 927
Net changes in
operating
assets and
liabilities:
Trade accounts
receivable, net (14,649) 8 (23,082) 5,472
Prepaid expenses
and other
current and
non-current
assets 4,239 1,712 (17,636) (565)
Payables and
other trade
accruals 3,196 (2,284) 12,421 (5,275)
Other accrued
liabilities (2,419) (318) 6,456 (8,456)
------ ---- ----- ------
Net cash
provided by
continuing
operations 35,142 44,965 105,964 129,011
Net cash
provided by
discontinued
operations 514 - 351 -
--- --- --- ---
Net cash
provided by
operating
activities 35,656 44,965 106,315 129,011
------ ------ ------- -------
Cash Flows from
Investing
Activities:
Payments for
capital
expenditures (56,576) (30,328) (158,743) (75,804)
Acquisition of
business, net
of cash
acquired (826) - (112,790) -
Net cash used in
investing
activities (57,402) (30,328) (271,533) (75,804)
------- ------- -------- -------
Cash Flows from
Financing
Activities:
Proceeds from
long-term debt 533,500 - 643,500 2,865
Principal
payments on
long-term debt (520,944) (1,650) (524,244) (4,950)
Payments for
debt
extinguishment (1,179) - (1,179) -
Payments for
debt issuance
costs (10,190) - (12,740) -
Proceeds from
stock option
exercises 7,207 288 16,538 330
Payments for
employee taxes
on equity-
based
instruments (283) (1,175) (3,097) (1,619)
Principal
payments under
capital lease
obligations (14,109) (1,932) (19,298) (6,090)
Other, net (3,409) (1,462) (4,607) (1,462)
Net cash
provided by
(used in)
financing
activities (9,407) (5,931) 94,873 (10,926)
------ ------ ------ -------
Effect of
exchange rate
changes on
cash and cash
equivalents 531 (156) (2,422) (67)
--- ---- ------ ---
Net Increase
(Decrease) in
Cash and Cash
Equivalents (30,622) 8,550 (72,767) 42,214
Cash and Cash
Equivalents,
Beginning of
Period 118,670 154,948 160,815 121,284
------- ------- ------- -------
Cash and Cash
Equivalents,
End of Period $88,048 $163,498 $88,048 $163,498
======= ======== ======= ========
Supplemental
Disclosures of
Cash Flow
Information:
Cash paid for
interest $14,298 $5,541 $35,084 $25,642
SAVVIS, Inc. and Subsidiaries
Unaudited Selected Condensed Consolidated Financial Information
(in thousands)
Three Months Ended
------------------
September 30, June 30,
------------- --------
2010 2009 2010
---- ---- ----
Segment Revenue:
Hosting $176,724 $148,155 $158,179
Network 65,177 65,056 63,577
Total Revenue $241,901 $213,211 $221,756
======== ======== ========
Segment Adjusted EBITDA:
Hosting $66,892 $55,582 $59,280
Network 15,747 18,484 16,589
Corporate - Other (1) (22,917) (22,875) (21,153)
Total Adjusted EBITDA (2) $59,722 $51,191 $54,716
======= ======= =======
Adjusted EBITDA Reconciliation:
Income from continuing operations $3,469 $4,514 $2,217
Depreciation, amortization and
accretion 50,335 38,201 42,441
Non-cash, equity-based compensation 5,435 8,476 6,545
Acquisition and integration costs 483 - 3,513
Adjusted EBITDA $59,722 $51,191 $54,716
======= ======= =======
Reconciliation of Adjusted EBITDA
to Income (Loss)
from Continuing Operations before
Income Taxes:
Adjusted EBITDA $59,722 $51,191 $54,716
Depreciation, amortization and
accretion (50,335) (38,201) (42,441)
Non-cash, equity-based compensation (5,435) (8,476) (6,545)
Acquisition and integration costs (483) - (3,513)
Interest income 41 33 20
Interest expense (18,391) (14,533) (15,573)
Other income (expense) (12,230) 613 220
------- --- ---
Income (Loss) from Continuing
Operations
before Income Taxes $(27,111) $(9,373) $(13,116)
======== ======= ========
Leveraged Free Cash Flow
Reconciliation:
Adjusted EBITDA $59,722 $51,191 $54,716
Acquisition and integration costs (483) - (3,513)
Cash capital expenditures (56,576) (30,328) (51,476)
Cash interest paid (14,298) (5,541) (12,953)
Interest income 41 33 20
Leveraged Free Cash Flow (3) $(11,594) $15,355 $(13,206)
======== ======= ========
(1) Corporate -Other adjusted EBITDA includes all costs not directly
associated with hosting services or network services. Costs not
directly associated with hosting services or network services
include, but are not limited to, general and administrative costs.
(2) Adjusted EBITDA represents income from continuing operations before
depreciation, amortization, accretion and non-cash, equity-based
compensation and excludes acquisition and integration costs. We
have included information concerning adjusted EBITDA because we
believe that in our industry such information is a relevant
measurement of a company's operating financial performance and
liquidity. The calculation of adjusted EBITDA is not specified by
United States generally accepted accounting principles. Our
calculation of adjusted EBITDA may not be comparable to similarly
titled measures of other companies.
(3) Leveraged Free Cash Flow represents adjusted EBITDA less cash paid
acquisition and integration costs, less cash capital expenditures
and less cash interest, net. We have included information
concerning leveraged free cash flow because we believe that in our
industry such information is a relevant measurement of a company's
operating financial performance and liquidity.
SAVVIS, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Nine Months
Ended Ended
----- -----
September 30, 2010
------------------
Revenue $241,901 $680,244
Operating Expenses:
Cost of revenue (including non-cash,
equity-based
compensation of $1,536 and $4,657) 131,597 371,186
Sales, general and administrative
expenses (including
non-cash, equity-based compensation
of $3,899 and $15,776) 56,500 165,096
Depreciation, amortization and
accretion 50,335 133,513
------ -------
Total Operating Expenses 238,432 669,795
------- -------
Income from Continuing Operations 3,469 10,449
Loss on debt extinguishment 8,735 8,735
Other income and expense 21,845 52,935
------ ------
Income (Loss) from Continuing
Operations before
Income Taxes (27,111) (51,221)
Income tax expense (886) (307)
---- ----
Income (Loss) from Continuing
Operations, net
of Income Taxes (26,225) (50,914)
------- -------
Income (loss) from discontinued
operations, net
of income taxes (9) (98)
--- ---
Net Income (Loss) $(26,234) $(51,012)
======== ========
Adjusted EBITDA $59,722 $168,391
As a percentage of revenue 25% 25%
Acquisition and integration costs 483 3,996
--- -----
Adjusted EBITDA including acquisition
and integration costs $59,239 $164,395
As a percentage of revenue 24% 24%
SAVVIS, Inc. and Subsidiaries
Unaudited Supplemental Revenue Information
(in thousands, except per square foot amounts)
Three Months Ended
------------------
September 30, December 31,
2009 2009
---- ----
Data Center Revenue
$85,341 $86,892
Colocation
62,814 67,772
Managed hosting
Data Center Metrics (1)
1,433 1,433
Total raised floor
886 878
Revenue space
640 591
Billed square feet
72% 67%
Utilization
Average Billed Square
Feet
608.6 592.3
Colocation
22.2 22.9
Managed hosting ---- ----
630.8 615.2
Total Average Billed
Square Feet ===== =====
Average Monthly Data
Center Revenue
Per Billed Square Foot
(2)
$46.7 $48.9
Colocation
945.1 985.4
Managed hosting
Three Months Ended
------------------
March 31, June 30, September 30,
2010 2010 2010
---- ---- ----
Data Center Revenue
$82,467 $84,281 $95,211
Colocation
70,284 73,898 81,513
Managed hosting
Data Center Metrics (1)
1,477 1,477 1,564
Total raised floor
889 885 957
Revenue space
601 622 678
Billed square feet
68% 70% 71%
Utilization
Average Billed Square
Feet
572.1 586.6 623.4
Colocation
23.8 25.1 26.8
Managed hosting ----
595.9 611.7 650.3
Total Average Billed
Square Feet ===== ===== =====
Average Monthly Data
Center Revenue
Per Billed Square Foot
(2)
$48.1 $47.5 $50.9
Colocation
984.5 974.4 1,012.7
Managed hosting
(1) Data center metrics are calculated as of period end for each
respective quarter.
(2) Average monthly data center revenue per billed square foot is
calculated as the revenue per quarter divided by the average billed
square feet per quarter stated on a monthly basis.
SAVVIS Revenue by Vertical
Three Months Ended
------------------
September 30, December 31,
2009 2009
---- ----
$53,974 $57,742
Financial vertical
159,237 162,077
Other
$213,211 $219,819
Total Revenue ======== ========
Three Months Ended
------------------
March 31, June 30, September 30,
2010 2010 2010
---- ---- ----
$55,532 $60,417 $67,007
Financial vertical
161,055 161,339 174,894
Other
$216,587 $221,756 $241,901
Total Revenue ======== ======== ========
Network Revenue Supplemental Information:
Three Months Ended
------------------
September 30, December 31,
2009 2009
---- ----
$28,616 $31,483
Core (1)
36,440 33,672
Sustaining (2)
$65,056 $65,155
Total Network Revenue ======= =======
Three Months Ended
------------------
March 31, June 30, September 30,
2010 2010 2010
---- ---- ----
$31,670 $33,459 $36,339
Core (1)
32,166 30,118 28,838
Sustaining (2)
$63,836 $63,577 $65,177
Total Network Revenue ======= ======= =======
(1) Core network includes revenue from Thomson Reuters and from other
financial vertical and data center clients, who also purchase
bundled network and hosting services.
(2) Sustaining network includes revenue from services that are either
in slower growth or declining markets or are not directly tied to
the future growth of the company's network and hosting businesses.
investors, Peggy Reilly Tharp, +1-314-628-7491, peggy.tharp at savvis.net, or media, George Csolak, +1-314-628-7266, george.csolak at savvis.net, both of Savvis, Inc.
Tags: England, Missouri, October 27, Savvis Inc., St. louis
