Savvis Reports Second Quarter 2010 Results
By Savvis Inc., PRNESunday, July 25, 2010
Quarter-on-Quarter Revenue Results Show Improvement
ST. LOUIS, July 26, 2010 - Savvis, Inc. (Nasdaq: SVVS), a global leader in cloud infrastructure and
hosted IT solutions for enterprises, today reported its second quarter 2010
financial results, with revenue of US$221.8 million, compared to US$219.9
million in the second quarter of 2009. Adjusted EBITDA* was US$54.7 million,
excluding US$3.5 million of Fusepoint acquisition and integration costs,
compared to US$55.1 million of adjusted EBITDA in the second quarter of 2009.
Income from continuing operations for the second quarter of 2010 was
US$2.6 million, compared to US$9.5 million in the second quarter of 2009. The
company reported a net loss of (US$13.2) million, or (US$0.24) per share, in
the second quarter of 2010, compared to a second quarter 2009 net loss of
(US$6.2) million, or (US$0.12) per share. Leveraged free cash flow* in the
second quarter of 2010 was (US$13.2) million, down from US$15.3 million in
the second quarter of 2009.
"Once again, Savvis outperformed internal plans for revenue, bookings,
installs, churn and renewals," said Jim Ousley, chairman and chief executive
officer for Savvis. "The organic growth we are seeing - in combination with
our strategic acquisition of Fusepoint - has left us poised to exit the year
at double digit growth run rates for both revenue and adjusted EBITDA. We
look forward to building on our successive quarterly strength, as we continue
implementing our new programs and process improvements and benefiting from
our efforts."
(All amounts in U.S. dollars unless otherwise noted.)
Second Quarter Financial Results
US dollars in millions Three months ended
6/30/10 3/31/10 6/30/09
Hosting $158.2 $152.8 $152.2
Network $63.6 $63.8 $67.7
Total revenue $221.8 $216.6 $219.9
Cost of revenue(1) $120.2 $119.4 $121.4
SG&A expenses(1) $56.9 $51.7 $51.1
Non-cash, equity-based compensation(1) $6.5 $8.5 $7.8
Income from continuing operations $2.6 $4.8 $9.5
Net income (loss) from continuing
operations ($13.1) ($11.3) ($6.2)
Income (loss) from discontinued
operations, net of income tax(2) ($0.05) -- --
Net income (loss) ($13.2) ($11.3) ($6.2)
Adjusted EBITDA $54.7 $54.0 $55.1
Adjusted EBITDA margin 25% 25% 25%
The Fusepoint acquisition was completed on June 16, 2010. (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 June 30, 2010, March 31, 2010,
and June 30, 2009, was US$1.5 million, US$1.6 million and US$1.5 million
and to SG&A expenses was US$5.1 million, US$6.8 million and US$6.3
million, respectively. (2) Includes a (US$49,000) loss from the
application services business acquired from Fusepoint, which has
been classified as an asset held for sale, as of June 30, 2010.
Second Quarter Overview
Total Savvis revenue for the second quarter was US$221.8 million, up 2%
compared to first quarter 2010 revenue of US$216.6 million. Excluding revenue
from the Fusepoint acquisition, revenue for the second quarter was US$220.3
million, up 2% compared to the first quarter of 2010.
Adjusted EBITDA was US$54.7 million for the second quarter of 2010, up 1%
compared to US$54.0 million of adjusted EBITDA recorded in the first quarter
of 2010. As expected, the company increased its sales and marketing spend, as
it continued to ramp up its efforts in this area.
For the second quarter of 2010, income from continuing operations of
US$2.6 million was down when compared to the US$4.8 million recorded in the
first quarter of 2010. A net loss from continuing operations of (US$13.1)
million was recorded in the second quarter of 2010, compared to a net loss of
(US$11.3) million in the first quarter of 2010. Savvis recorded a loss per
share of (US$0.24) in the second quarter of 2010, compared to a loss per
share of (US$0.21) in the first quarter of 2010. For the second quarter,
leveraged free cash flow was (US$13.2) million, down from (US$4.5) million in
the first quarter of 2010.
Hosting
US dollars in millions Three months ended
6/30/10 3/31/10 6/30/09
Colocation $84.3 $82.5 $84.9
Managed Services $73.9 $70.3 $67.3
Total Hosting revenue $158.2 $152.8 $152.2
Percentage change 4% 4%
Overall Hosting revenue was US$158.2 million in the second quarter, up 4%
on a quarter-over-quarter basis. On a year-over-year basis, Hosting revenue
was up 4%. Excluding revenue from the Fusepoint acquisition, overall Hosting
revenue was US$156.8 million in the second quarter, up 3% on a year-over-year
basis and up 3% on a quarter-over-quarter basis.
For the quarter, Managed Services contributed US$73.9 million to overall
Hosting revenue, or 47%. Managed Services revenue was up 5% on a quarterly
basis and year-over-year it was up 10%. Excluding revenue from the Fusepoint
acquisition, Managed Services revenue was US$73.2 million in the second
quarter, up 4% on a quarter-over-quarter basis and up 9% on a year-over-year
basis. The growth in revenue reflects client interest in both standard
managed services and cloud services. For the second quarter of 2010, cloud
revenue was up 24% on a quarter-over-quarter basis and up 129%
year-over-year.
Colocation contributed US$84.3 million to overall Hosting revenue in the
quarter, or 53%. Quarter-over-quarter, Colocation revenue was up 2%. On a
year-over-year basis, Colocation revenue was roughly flat. Excluding revenue
from the Fusepoint acquisition, Colocation revenue was US$83.6 million in the
second quarter, up 1% on a quarter-over-quarter basis and down (2%) on a
year-over-year basis. The company is experiencing strong trends in colocation
bookings, with increased interest from financial and cloud related clients.
Network
US dollars in millions Three months ended
6/30/10 3/31/10 6/30/09
Core $33.5 $31.7 $26.9
Sustaining $30.1 $32.2 $40.8
Total Network revenue $63.6 $63.8 $67.7
Percentage change -- (6%)
Overall Network revenue was US$63.6 million in the second quarter and was
flat on a quarterly basis. On an annual basis, Network revenue was down (6%).
As of the second quarter, Core Network revenue surpassed Sustaining Network
revenue, as the Core Network continued to grow while the Sustaining Network
decline continued to slow. The Network business has continued to stabilize,
as the company has refocused its efforts in this area, and it should begin to
show overall growth by the end of 2010. The Network has also benefited from
increased client interest in converged cloud.
For the quarter, Core Network contributed US$33.5 million to overall
Network revenue. Core Network revenue was up 6% on a quarter-over-quarter
basis and was up 24% on a year-over-year basis. Sustaining Network
contributed US$30.1 million to overall Network revenue in the quarter.
Quarter-over-quarter, Sustaining Network revenue was down (6%). On a
year-over-year basis, Sustaining Network revenue declined (26%).
Highlights
The Financial Vertical represented 27% of total revenue, or US$60.4
million, in the second quarter of 2010. Revenue in the quarter was up 9%
compared to the first quarter of 2010 and was flat compared to the second
quarter of 2009.
During the second quarter, the company announced the addition of Barclays
Capital's dark liquidity crossing network and UBS Investment Bank's
Alternative Trading System to its financial vertical ecosystem, in addition
to many other new financial vertical clients.
Savvis continues to lead in the Financial Vertical, by functioning as a
vital component of the fabric that interconnects the financial industry. In
addition, the company remains well-positioned in this area, with
infrastructure resources in the key financial markets, such as New York,
Chicago, Toronto, London, Frankfurt, Tokyo, Hong Kong and Singapore.
In June, Savvis announced that its Savvis Symphony Virtual Private Data
Center (VPDC) had successfully transitioned from beta to general
availability. VPDC is one of the industry's first enterprise-class virtual
private data center solutions, with multi-tiered security, service and
network profiles.
Savvis Symphony is the centerpiece of a converged cloud solution that
blends cloud with traditional infrastructure services such as colocation and
managed services. This unique combination, coupled with Savvis' Tier1 network
and global data center footprint, enables enterprises to have a consistent,
secure, low-latency solution anywhere in the world.
Cash Flow and Balance Sheet
Net cash provided by operating activities was US$32.3 million in the
second quarter of 2010, compared to US$38.4 million in the second quarter of
2009. Cash capital expenditures for the second quarter of 2010 totaled
US$51.5 million.
The company's cash position at June 30, 2010, was US$118.7 million,
compared to US$145.9 million at March 31, 2010. As of June 30, 2010, the
long-term debt and capital leases for Savvis (net of current portion) totaled
US$712.8 million, up from US$595.8 million as of March 31, 2010.
The company's debt position increased during the second quarter of 2010,
as the company borrowed US$110.0 million on its revolving credit facility to
fund the acquisition of Fusepoint. As part of the acquisition, Savvis added
US$9.3 million of capital leases.
Financial Outlook
"In addition to a 2% quarterly increase in revenue, we saw a slight
quarterly increase in adjusted EBITDA, excluding Fusepoint acquisition and
integration costs of US$3.5 million. This improvement was despite our
expected investment in cloud sales and marketing spend, performance driven
sales and support costs, and an increase in commissions related to new
business," said Greg Freiberg, chief financial officer for Savvis. "Thanks to
our continued strong organic growth, we have decided to provide full year
2010 revenue guidance of US$912 to US$927 million, which includes the
Fusepoint acquisition."
In addition, Savvis now expects the following for full year 2010, which
includes the Fusepoint acquisition:
- Adjusted EBITDA of US$220 to US$240 million, which is an increase from
previous guidance of US$210 to US$225 million and does not include the
US$5 to US$6 million of acquisition and integration costs
- Total cash capital expenditures of US$190 to US$210 million, which is
an increase from previous guidance of US$180 to US$200 million and
includes US$50 to US$55 million for data center expansion
- Cash interest expense (net) of approximately US$55 to US$60 million,
which is an increase over previous guidance of US$40 to US$50 million
and is due to expected changes in the company's debt structure
Investor Conference Call
Savvis will webcast an investor conference call at 10:00 a.m. ET today,
July 26, 2010. Both the webcast and supporting presentation will be available
at www.savvis.net on the Investor Relations page. A live conference
call will also be available by telephone at (866) 835-8906 for financial
analysts in North America or +1-703-639-1413 for international analysts. A
replay will be available on the web site for six months. Investors may also
access the replay by telephone through Saturday, Aug. 7, by dialing
(888) 266-2081 in North America or +1-703-925-2533 internationally and using
the access code 1469201.
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
www.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 December 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, July 26, 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 Six Months Ended
June 30, June 30,
-------- --------
2010 2009 2010 2009
---- ---- ---- ----
Revenue $221,756 $219,861 $438,343 $441,384
Operating
Expenses:
Cost of revenue
(including non-
cash, equity-
based
compensation of
$1,491, $1,474,
$3,121 and
$2,957) 120,221 121,441 239,589 241,962
Sales, general and
administrative
expenses
(including
non-cash, equity-
based
compensation of
$5,054, $6,311,
$11,877 and
$11,719) 56,877 51,084 108,596 100,153
Depreciation,
amortization and
accretion 42,089 37,799 82,826 74,134
------ ------ ------ ------
Total Operating
Expenses 219,187 210,324 431,011 416,249
------- ------- ------- -------
Income from
Continuing
Operations 2,569 9,537 7,332 25,135
Other income and
expense 15,487 14,955 31,244 29,381
------ ------ ------ ------
Income (Loss) from
Continuing
Operations before
Income Taxes (12,918) (5,418) (23,912) (4,246)
Income tax expense 224 756 579 1,311
--- --- --- -----
Income (Loss) from
Continuing
Operations, net
of Income Taxes (13,142) (6,174) (24,491) (5,557)
------- ------ ------- ------
Income (loss) from
discontinued
operations, net
of income taxes (49) - (49) -
--- --- --- ---
Net Income (Loss) $(13,191) $(6,174) $(24,540) $(5,557)
======== ======= ======== =======
Income (Loss) per
Share from
Continuing
Operations
Basic earnings per
share $(0.24) $(0.12) $(0.45) $(0.10)
====== ====== ====== ======
Diluted earnings
per share $(0.24) $(0.12) $(0.45) $(0.10)
====== ====== ====== ======
Weighted-Average
Common Shares
Outstanding
Basic 55,005 53,664 54,775 53,650
====== ====== ====== ======
Diluted 55,005 53,664 54,775 53,650
====== ====== ====== ======
SAVVIS, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2010 2009
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $118,729 $160,815
Trade accounts receivable, net 59,517 45,754
Prepaid expenses and other current assets 40,741 21,217
------- -------
Total Current Assets 218,987 227,786
------- -------
Property and equipment, net 834,316 783,852
Goodwill and intangibles 95,336 -
Other non-current assets 20,102 13,120
------ ------
Total Assets $1,168,741 $1,024,758
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Payables and other trade accruals $76,972 $52,710
Current portion of long-term debt and
lease obligations 21,506 17,479
Other accrued liabilities 75,562 68,314
------- -------
Total Current Liabilities 174,040 138,503
------- -------
Long-term debt, net of current portion 486,873 376,089
Capital and financing method lease
obligations, net of current portion 225,927 223,897
Other accrued liabilities 77,358 76,452
------- -------
Total Liabilities 964,198 814,941
------- -------
Stockholders' Equity:
Common stock 551 545
Additional paid-in capital 884,354 862,834
Accumulated deficit (658,969) (634,429)
Accumulated other comprehensive loss (21,393) (19,133)
------- -------
Total Stockholders' Equity 204,543 209,817
------- -------
Total Liabilities and Stockholders' Equity $1,168,741 $1,024,758
========== ==========
SAVVIS, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2010 2009 2010 2009
---- ---- ---- ----
Cash Flows from
Operating
Activities:
Net income (loss) $(13,191) $(6,174) $(24,540) $(5,557)
(Income) loss from
discontinued
operations, net of
income taxes (49) - (49) -
--- --- --- ---
Income (loss) from
continuing
operations, net of
income taxes (13,142) (6,174) (24,491) (5,557)
Reconciliation of
net income (loss)
from continuing
operations to
net cash provided by
operating
activities:
Depreciation,
amortization and
accretion 42,089 37,799 82,826 74,134
Non-cash, equity-
based compensation 6,545 7,785 14,998 14,676
Accrued interest,
net (1,948) (1,293) 1,338 2,264
Amortization of debt
discount 3,845 3,542 7,612 7,013
Other, net 261 (595) 593 (542)
Net changes in
operating assets
and liabilities:
Trade accounts
receivable, net (2,843) 3,261 (9,424) 5,464
Prepaid expenses and
other current and
non-current assets (15,192) (3,268) (21,764) (2,277)
Payables and other
trade accruals 1,794 (3,018) 9,249 (2,991)
Other accrued
liabilities 10,910 357 10,354 (8,138)
------ --- ------ ------
Net cash provided by
continuing
operations 32,319 38,396 71,291 84,046
Net cash provided by
discontinued
operations 1 - 1 -
--- --- --- ---
Net cash provided by
operating
activities 32,320 38,396 71,292 84,046
------ ------ ------ ------
Cash Flows from
Investing
Activities:
Payments for capital
expenditures (51,476) (27,224) (102,167) (45,476)
Acquisition of
business, net of
cash acquired (112,537) - (112,537) -
-------- -------- -------- --------
Net cash used in
investing
activities (164,013) (27,224) (214,704) (45,476)
-------- -------- -------- --------
Cash Flows from
Financing
Activities:
Proceeds from long-
term debt 110,000 799 110,000 2,865
Payments for debt
issuance costs (2,550) - (2,550) -
Proceeds from stock
option exercises 2,683 38 9,331 42
Payments for
employee taxes on
equity-based
instruments (2) - (2,814) (444)
Principal payments
on long-term debt (1,650) (1,650) (3,300) (3,300)
Principal payments
under capital lease
obligations (2,651) (2,208) (5,189) (4,158)
Other, net (586) - (1,198) -
---- ------ ------ ------
Net cash provided by
(used in) financing
activities 105,244 (3,021) 104,280 (4,995)
------- ------ ------- ------
Effect of exchange
rate changes on
cash and cash
equivalents (750) 935 (2,954) 89
---- --- ------ ---
Net Increase
(Decrease) in Cash
and Cash
Equivalents (27,199) 9,086 (42,086) 33,664
Cash and Cash
Equivalents,
Beginning of Period 145,928 145,862 160,815 121,284
------- ------- ------- -------
Cash and Cash
Equivalents, End of
Period $118,729 $154,948 $118,729 $154,948
======== ======== ======== ========
Supplemental
Disclosures of Cash
Flow Information:
Cash paid for
interest $12,953 $12,613 $20,786 $20,101
SAVVIS, Inc. and Subsidiaries
Unaudited Selected Condensed Consolidated Financial Information
(in thousands)
Three Months Ended
------------------
June 30, March 31,
--------
2010 2009 2010
---- ---- ----
Segment Revenue:
Hosting $158,179 $152,159 $152,751
Network 63,577 67,702 63,836
-------- -------- --------
Total Revenue $221,756 $219,861 $216,587
======== ======== ========
Segment Adjusted EBITDA:
Hosting $59,280 $60,221 $58,960
Network 16,589 16,804 16,265
Corporate - Other (1) (21,153) (21,904) (21,272)
------- ------- -------
Total Adjusted EBITDA (2) $54,716 $55,121 $53,953
======= ======= =======
Adjusted EBITDA
Reconciliation:
Income from continuing
operations $2,569 $9,537 $4,763
Depreciation, amortization
and accretion 42,089 37,799 40,737
Non-cash, equity-based
compensation 6,545 7,785 8,453
Acquisition and integration
costs 3,513 - -
------- ------- -------
Adjusted EBITDA $54,716 $55,121 $53,953
======= ======= =======
Reconciliation of Adjusted
EBITDA to Income (Loss)
from Continuing Operations
before Income Taxes:
Adjusted EBITDA $54,716 $55,121 $53,953
Depreciation, amortization
and accretion (42,089) (37,799) (40,737)
Non-cash, equity-based
compensation (6,545) (7,785) (8,453)
Acquisition and integration
costs (3,513) - -
Interest income 20 44 30
Interest expense (15,573) (14,661) (15,475)
Other income (expense) 66 (338) (312)
--- ---- ----
Income (Loss) from Continuing
Operations
before Income Taxes $(12,918) $(5,418) $(10,994)
======== ======= ========
Leveraged Free Cash Flow
Reconciliation:
Adjusted EBITDA $54,716 $55,121 $53,953
Acquisition and integration
costs (3,513) - -
Cash capital expenditures (51,476) (27,224) (50,691)
Cash interest paid (12,953) (12,613) (7,832)
Interest income 20 44 30
-------- ------- -------
Leveraged Free Cash Flow (3) $(13,206) $15,328 $(4,540)
======== ======= =======
--------------------------------
(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 Six Months
Ended Ended
----- -----
June 30, 2010
-------------
Revenue $221,756 $438,343
Operating Expenses:
Cost of revenue (including non-cash,
equity-based
compensation of $1,491, $1,474, $3,121
and $2,957) 120,221 239,589
Sales, general and administrative
expenses (including
non-cash, equity-based compensation of
$5,054, $6,311, $11,877 and $11,719) 56,877 108,596
Depreciation, amortization and accretion 42,089 82,826
------ ------
Total Operating Expenses 219,187 431,011
------- -------
Income from Continuing Operations 2,569 7,332
Other income and expense 15,487 31,244
------ ------
Income (Loss) from Continuing Operations
before
Income Taxes (12,918) (23,912)
Income tax expense 224 579
--- ---
Income (Loss) from Continuing Operations,
net
of Income Taxes (13,142) (24,491)
------- -------
Income (loss) from discontinued
operations, net
of income taxes (49) (49)
--- ---
Net Income (Loss) $(13,191) $(24,540)
======== ========
Adjusted EBITDA $54,716 $108,669
As a percentage of revenue 25% 25%
Acquisition and integration costs 3,513 3,513
----- -----
Adjusted EBITDA including acquisition and
integration costs $51,203 $105,156
As a percentage of revenue 23% 24%
SAVVIS, Inc. and Subsidiaries
Unaudited Supplemental Revenue Information
(in thousands, except per square foot amounts)
Three Months Ended
------------------
June 30, September 30, December 31,
2009 2009 2009
---- ---- ----
Data Center Revenue
Colocation $84,856 $85,341 $86,892
Managed hosting 67,303 62,814 67,772
Data Center Metrics (1)
Total raised floor 1,433 1,433 1,433
Revenue space 923 886 878
Billed square feet 622 640 591
Utilization 67% 72% 67%
Average Billed Square Feet
Colocation 595.4 608.6 592.3
Managed hosting 21.4 22.2 22.9
----- ----- -----
Total Average Billed Square
Feet 616.8 630.8 615.2
===== ===== =====
Average Monthly Data Center
Revenue
Per Billed Square Foot (2)
Colocation $47.5 $46.7 $48.9
Managed hosting 1,046.4 945.1 985.4
Three Months Ended
------------------
March 31, June 30,
2010 2010
---- ----
Data Center Revenue
Colocation $82,467 $84,281
Managed hosting 70,284 73,898
Data Center Metrics (1)
Total raised floor 1,477 1,477
Revenue space 889 885
Billed square feet 601 622
Utilization 68% 70%
Average Billed Square Feet
Colocation 572.1 586.6
Managed hosting 23.8 25.1
----- -----
Total Average Billed Square
Feet 595.9 611.7
===== =====
Average Monthly Data Center
Revenue
Per Billed Square Foot (2)
Colocation $48.1 $47.5
Managed hosting 984.5 974.4
(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
------------------
June 30, September 30, December 31,
2009 2009 2009
---- ---- ----
Financial vertical $60,065 $53,974 $57,742
Other 159,796 159,237 162,077
-------- -------- --------
Total Revenue $219,861 $213,211 $219,819
======== ======== ========
Three Months Ended
------------------
March 31, June 30,
2010 2010
---- ----
Financial vertical $55,532 $60,417
Other 161,055 161,339
-------- --------
Total Revenue $216,587 $221,756
======== ========
Network
Revenue
Supplemental
Information:
Three Months Ended
------------------
June 30, September 30, December 31,
2009 2009 2009
---- ---- ----
Core (1) $26,918 $28,616 $31,483
Sustaining (2) 40,784 36,440 33,672
------- ------- -------
Total Network Revenue $67,702 $65,056 $65,155
======= ======= =======
Three Months Ended
------------------
March 31, June 30,
2010 2010
---- ----
Core (1) $31,670 $33,459
Sustaining (2) 32,166 30,118
------- -------
Total Network Revenue $63,836 $63,577
======= =======
(1) Core network includes revenue from Thomson Reuters and from other
financial vertical and data center customers, 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
Tags: England, July 26, Missouri, Savvis Inc., St. louis
