ST. LOUIS, Oct. 6, 2010 – Savvis, Inc. (NASDAQ: SVVS), a global leader in cloud infrastructure and hosted IT solutions for enterprises, today reaffirmed and narrowed its guidance for full year 2010. Savvis expects the following:
- Revenue of $917 to $927 million, a increase from the low end of previous guidance of $912 million
- Adjusted EBITDA of $220 to $240 million
- Total cash capital expenditures of $190 to $210 million
- Cash interest expense (net) of approximately $55 to $60 million
Savvis plans to release its third quarter 2010 financial results before the market opens on Wednesday, Oct. 27, 2010. Company executives will host a financial analyst call at 10:00 a.m. ET that morning to discuss third quarter earnings, provide a general business update and review the outlook for the remainder of the year.
The dial-in number for financial analysts in North America is (866) 261-2650 or (703) 639-1221 for international analysts. To participate, please dial in a few minutes before the scheduled time. Employees, the media and the public are invited to listen to the call at savvis.net. A supporting presentation will also be available at savvis.net on the Investor Relations page.
A replay of the call will be available through Monday, Nov. 8, by dialing (888) 266-2081 in North America or (703) 925-2533 internationally and using the access code 1487309. A webcast replay will also be archived for a limited period on the company’s web site at www.savvis.net.
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.
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, October 5, 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. 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, for forward looking data, including 2010 full-year guidance. 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.