SaaS Journal

Savvis Session at Cloud Expo

Savvis, a provider of outsourced internet infrastructure services for enterprises, today reported its fourth quarter 2009 financial results, with revenue of US$219.8 million, compared to US$222.4 million in the fourth quarter of 2008. Adjusted EBITDA was US$54.9 million, compared to US$52.0 million of adjusted EBITDA in the fourth quarter of 2008.

Income from operations for the fourth quarter of 2009 was US$10.4 million, compared to US$15.0 million in the fourth quarter of 2008. The company reported a net loss of (US$5.4) million, or (US$0.10) per share, in the fourth quarter of 2009, compared to a fourth quarter 2008 net loss of (US$0.3) million, or (US$0.01) per share.

For full year 2009, revenue was US$874.4 million, up 2% when compared to full year 2008 revenue of US$857.0 million. Adjusted EBITDA for 2009 was US$220.0 million, up 19% over the US$184.6 million reported in 2008. Leveraged free cash flow* in 2009 was US$50.1 million, up significantly compared to (US$90.6) million in the prior year. The improvement in leveraged free cash flow is due to a reduction in capital expenditures in 2009, following the completion of the company's global data center expansion in 2008.

Compared to full year 2008 income from operations of US$26.5 million, Savvis reported income from operations of US$40.1 million in 2009. The company reported a net loss of (US$20.8) million in 2009, an improvement over its 2008 net loss of (US$22.0) million. For full year 2009, Savvis had a net loss per share of (US$0.39), compared to a net loss per share of (US$0.41) in 2008.

"In the fourth quarter, Savvis recorded its best bookings in 18 months," said Jim Ousley, interim chief executive officer of Savvis. "The fourth quarter included a US$33 million, five-year deal to provide outsourcing to a global, information distribution services company. In addition, we saw strong sales in the financial and media verticals, as well as with our cloud offerings. We are pleased with the sequential revenue growth in the fourth quarter, particularly in our Hosting segment."