ST. LOUIS – October 23, 2007 – Responding to growing customer demand for integrated hosting and network services, SAVVIS, Inc. (NASDAQ:SVVS), a global leader in IT infrastructure services for business applications, today announced plans to build out and complete its data center facility in the Dallas metropolitan area.
The new data center will be SAVVIS’ second in the Dallas area and will provide a broad range of IT infrastructure services, including colocation, managed hosting, virtualized and utility computing, managed networks, and security, to meet the growing needs of enterprise IT.
“SAVVIS continues to expand our data center footprint to meet increasing demand from enterprise customers for IT infrastructure solutions that integrate compute, storage and network capabilities provisioned as a service,” said Phil Koen, Chief Executive Officer of SAVVIS. “Given the strong growth of our business, evidenced by record sales bookings in the third quarter, we are adding a new data center in Dallas, building on our existing customer base and strong sales and operations team already in place in Dallas. Our model of building out data centers that offer value add both collocation, managed hosting and network services provides our customers with the choice and flexibility they expect and provides strong returns on capital for our investors.”
The Dallas data center will provide a total of approximately 46,800 square feet of raised floor space yielding approximately 29,000 square feet of revenue-generating space, and is expected to be opened in the second quarter of 2008. In 2009, the first full year of operations, the Dallas data center is expected to generate approximately $20 million of revenue with more than 40% Adjusted EBITDA margin.
SAVVIS anticipates spending approximately $18 million in 2007 and $32 million in the first quarter of 2008 to complete development of the Dallas data center. Funding will be provided by the proceeds of the sale of certain assets to Microsoft announced in June.
In addition to the new data center in Dallas, SAVVIS completed development and opened four new data centers in September and October 2007 in the Atlanta, Washington DC, Silicon Valley and New York metropolitan areas, and has additional data centers in development in the Boston and Chicago areas. With the new Dallas facility announced today, SAVVIS’ total data center footprint exceeds 1.3 million square feet of raised floor encompassing 30 data centers worldwide.
SAVVIS, Inc. (NASDAQ: SVVS) is a global leader in IT infrastructure services for business applications. With an IT services platform spanning North America, Europe, and Asia, SAVVIS leads the industry in delivering secure, reliable, and scalable hosting, network, and application services. These solutions enable customers to focus on their core business while SAVVIS ensures the quality of their IT systems and operations. SAVVIS’ strategic approach combines virtualization technology, a global network and multiple data centers, and automated management and provisioning systems. For more information about SAVVIS, visit www.savvis.net.
* Adjusted EBITDA
“Adjusted EBITDA” represents income (loss) from operations before depreciation, amortization, accretion, interest expense, gains and losses on acquisitions and divestitures, and non-cash equity-based compensation. 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.
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, 2006, and all subsequent filings. Those risk factors include, but are not limited to, the risk that customer demand, profitability, and cash flow results may be materially different from those set forth in this release, variability in pricing for SAVVIS’ products, highly competitive markets, rapid evolution of technology, uncertainties related to merger and acquisition activity, and changes in our operating environment. The forward-looking statements contained in this document speak only as of the date of publication, October 23, 2007. 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.