ST. LOUIS, Feb. 8, 2011 /PRNewswire/ -- Savvis, Inc. (Nasdaq: SVVS), a global leader in cloud infrastructure and hosted IT solutions for enterprises, today reported its fourth quarter 2010 financial results, with revenue of $252.7 million, compared to $219.8 million in the fourth quarter of 2009.  Adjusted EBITDA* was $67.8 million, compared to $54.9 million of adjusted EBITDA in the fourth quarter of 2009.  

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Income from continuing operations for the fourth quarter of 2010 was $14.0 million, compared to $10.4 million in the fourth quarter of 2009.  Savvis reported a net loss of ($2.9) million, or ($0.06) per share, in the fourth quarter of 2010, compared to a fourth quarter 2009 net loss of ($5.4) million, or ($0.10) per share.

"Our remarkable fourth quarter results were an appropriate end to 2010, with good growth in Managed Services, Colocation and Network revenue reported on both an annual and a quarterly basis," said Jim Ousley, chairman and chief executive officer for Savvis.  "Our successful execution and the strategic changes we made over the past year are reflected in our solid financials.  We expect to see a general continuation of these trends in 2011, with specific strength in our Managed Services business."

For full year 2010, revenue was $933.0 million, up 7% when compared to full year 2009 revenue of $874.4 million.  Adjusted EBITDA for 2010 was $236.2 million, up 7% over the $220.0 million reported in 2009.  

Savvis reported income from continuing operations of $24.5 million in 2010, compared to full year 2009 income from continuing operations of $40.1 million.  The company reported a net loss of ($54.0) million in 2010, or ($0.98) per share, and this amount includes approximately $11.8 million in costs related to the company's debt refinancing.  For full year 2009, Savvis had a net loss of ($20.8) million, or ($0.39) per share.

Fourth Quarter Financial Results

US$ in millions

Three months ended


12/31/10

9/30/10

12/31/09

Hosting

$185.7

$176.7

$154.7

Network

$67.0

$65.2

$65.1

Total revenue

$252.7

$241.9

$219.8





Cost of revenue(1)

$129.6

$131.6

$120.4

SG&A expenses(1) (2)

$61.7

$56.5

$50.5

Non-cash, equity-based compensation(1)

$5.2

$5.4

$6.0

Income from continuing operations

$14.0

$3.5

$10.4

Net income (loss) from continuing operations

($3.1)

($26.2)

($5.4)

Income (loss) from discontinued operations, net of income tax(3)

$0.2

($0.0)

--

Net income (loss)

($2.9)

($26.2)

($5.4)





Adjusted EBITDA

$67.8

$59.7

$54.9

Adjusted EBITDA margin

27%

25%

25%




(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 Dec. 31, 2010, Sept. 30, 2010, and Dec. 31, 2009, was $1.3 million, $1.5 million and $1.1 million and to SG&A expenses was $4.0 million, $3.9 million and $4.9 million, respectively.  (2) SG&A expenses include acquisition and integration costs of $1.1 million and $0.5 million for the three months ended Dec. 31, 2010, and Sept. 30, 2010, respectively.  (3) Includes income (loss) from the application services business acquired from Fusepoint, which was classified as an asset held for sale at Sept. 30, 2010, and sold on Dec. 13, 2010.  Total income (loss) attributed to net income for the three months ended Dec. 31, 2010, and Sept. 30, 2010, was $160,000 and ($9,000), respectively.

Fourth Quarter Overview

Total Savvis revenue for the fourth quarter was $252.7 million, up 4% compared to third quarter 2010 revenue of $241.9 million.  Strong Managed Services growth, data center expansions, improved renewals and churn, and a seasonal increase in network traffic all helped contribute to the improvement.

Adjusted EBITDA was $67.8 million for the fourth quarter of 2010, up 14% compared to $59.7 million of adjusted EBITDA in the third quarter of 2010.  Growth in fourth quarter adjusted EBITDA was the result of steady improvement in the company's renewals, bookings and installations throughout the preceding three quarters.  

Hosting

US$ in millions

Percent of Revenue

Three months ended


12/31/10

9/30/10

12/31/09

Managed Services

48%

$89.3

$81.5

$67.8

Percentage change



10%

32%

Colocation

52%

$96.4

$95.2

$86.9

Percentage change



1%

11%

Total Hosting revenue


$185.7

$176.7

$154.7

Percentage change



5%

20%




In the fourth quarter, Managed Services revenue reflected continued growth in demand for Savvis' traditional managed services and an increase in traction for its cloud solutions, which represent a growing portion of Managed Services revenue.  Traditional managed services include both utility and virtualized services, while cloud solutions include the Savvis Symphony Open, Dedicated and VPDC products.

Colocation revenue was up both quarterly and annually in the fourth quarter, as the company continued to target and win enterprise clients for its global data centers.  Savvis also continued to reap the benefits of its revamped renewal program, which resulted in a continued reduction in both colocation and overall churn.

Network

US$ in millions

Percent of Revenue

Three months ended


12/31/10

9/30/10

12/31/09

Core(1)

57%

$38.4

$36.4

$31.4

Percentage change



6%

22%

Sustaining(2)

43%

$28.6

$28.8

$33.7

Percentage change



(1%)

(15%)

Total Network revenue


$67.0

$65.2

$65.1

Percentage change



3%

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.

The overall Network business showed both quarterly and annual revenue growth in the fourth quarter, due to a seasonal increase in network traffic and a quarterly delay in some expected churn.  As expected, Core Network revenue continued to grow, while the decline in Sustaining Network revenue continued to slow.  

Other Highlights

The Financial Vertical represented 28% of total revenue, or $69.7 million, in the fourth quarter of 2010.  Revenue in the quarter was up 4%, compared to the third quarter of 2010, and was up 21%, compared to the fourth quarter of 2009.  

During the quarter, Savvis added two new exchanges in Chicago and Slough.  The company also continued its expansion into additional global financial markets, as part of its collaboration with Thomson Reuters.  To date, orders for Thomson Reuters Elektron Hosting solution are being taken in 10 locations.

Cash Flow and Balance Sheet

Net cash provided by operating activities was $71.4 million in the fourth quarter of 2010, compared to $57.5 million in the fourth quarter of 2009.  Cash capital expenditures for the fourth quarter of 2010 totaled $43.8 million.  

The company's cash position at Dec. 31, 2010, was $120.3 million, compared to $88.0 million at Sept. 30, 2010.  As of Dec. 31, 2010, the long-term debt and capital leases for Savvis (net of current portion) totaled $747.2 million, flat from $747.7 million as of Sept. 30, 2010.  

Full Year Financial Results

US$ in millions

12 months ended


12/31/10

12/31/09

% change

Colocation

$358.4

$341.3

5%

Managed services

$315.0

$266.0

18%

Hosting

$673.4

$607.3

11%

Core

$139.9

$112.6

24%

Sustaining

$119.7

$154.5

(23%)

Network services

$259.6

$267.1

(3%)

Total revenue

$933.0

$874.4

7%





Cost of revenue(1)

$500.7

$480.3

4%

SG&A expenses(1)

$226.8

$203.2

12%

Non-cash, equity-based compensation(1)

$25.7

$29.1

(12%)

Income from continuing operations

$24.5

$40.1

(39%)

Net income (loss) from continuing operations

($54.0)

($20.8)

(159%)

Income (loss) from discontinued operations, net of income tax(2)

$0.1

--

--

Net income (loss)

($54.0)

($20.8)

(159%)





Adjusted EBITDA

$236.2

$220.0

7%

Adjusted EBITDA margin

25%

25%

~15 bps




(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 12 months ended Dec. 31, 2010, and Dec. 31, 2009, was $5.9 million and $5.5 million and to SG&A expenses was $19.8 million and $23.6 million, respectively.  (2) Includes income from the application services business acquired from Fusepoint, which was classified as an asset held for sale at Sept. 30, 2010, and sold on Dec. 13, 2010.  Total income attributed to net income for the 12 months ended Dec. 31, 2010, was $61,000.

Full Year Highlights

In addition to year-over-year growth in Managed Services, Colocation and Core Network in 2010, the company also saw significant improvement in specific verticals and product lines.  In the financial vertical, 2010 revenue was $252.7 million, up 10% over 2009 revenue of $229.1 million.  For the company's Savvis Symphony line of cloud products, which is a part of its Managed Services offerings, revenue in 2010 was $15.2 million, up 106% over 2009 revenue of $7.4 million.  

Savvis closed out the year with the news that it was positioned in the Leaders Quadrant in the Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting in 2010.  The Gartner Magic Quadrant is widely recognized as one of the most influential market analyses for enterprises seeking to evaluate cloud and hosting vendors.  

As part of the company's strategic plan to expand its geographic presence around the world, Savvis acquired Fusepoint for approximately $121 million in cash in June.  Fusepoint is well-positioned in the Canadian hosting market as a leading provider of managed IT and colocation services, with data centers in Toronto, Vancouver and Montreal.

In August, Savvis restructured its debt profile and closed on its senior secured credit facilities, which include a $550 million term loan and a $75 million revolving credit facility.  The proceeds were used to fund a tender offer for the company's 3% Convertible Senior Notes due May 2012, and Savvis accepted nearly 99% of the outstanding $345 million for payment.  Proceeds were also used to repay outstanding amounts under the company's existing revolving credit facility and other bank and vendor financing.

Financial Outlook

"The strength in execution we saw throughout 2010, and into the fourth quarter, gave us the confidence to announce our full year 2011 guidance at our investor day in early December 2010," said Greg Freiberg, chief financial officer for Savvis.  "Strong fourth quarter financial results and continued execution of our business model are expected to help position us for success in 2011."

Savvis continues to expect the following for full year 2011:

  • Revenue of $1,030 to $1,060 million
  • Adjusted EBITDA of $265 to $290 million
  • Total cash capital expenditures of $220 to $240 million
  • Cash interest expense (net) of approximately $65 million

Investor Conference Call

Savvis will webcast an investor conference call at 10:00 a.m. ET today, Feb. 8, 2011.  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 (866) 261-2650 for analysts in North America or (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 (703) 925-2533 internationally and using the access code 1505734 through Tuesday, Feb. 22.

About Savvis

Savvis, Inc. (Nasdaq: SVVS) is a global leader in cloud infrastructure and hosted IT solutions for enterprises. Nearly 2,500 unique clients, including 32 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 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, Feb. 8, 2011.  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 2011 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


Year Ended






December 31,


December 31,






2010


2009


2010


2009













Revenue



$              252,740


$              219,819


$              932,984


$              874,414

Operating Expenses:











Cost of revenue (including non-cash, equity-based












compensation of $1,262, $1,068, $5,919 and $5,498) (1)



                129,563


                120,428


                500,749


                480,335


Sales, general and administrative expenses (including












non-cash, equity-based compensation of $3,983, $4,882, $19,759 and $23,604) (1)



                  61,746


                  50,454


                226,842


                203,158


Depreciation, amortization and accretion



                  47,390


                  38,519


                180,903


                150,854

Total Operating Expenses



                238,699


                209,401


                908,494


                834,347

Income from Continuing Operations



                  14,041


                  10,418


                  24,490


                  40,067


Loss on debt extinguishment



                         -  


                         -  


                    8,735


                         -  


Other income and expense



                  17,835


                  14,916


                  70,770


                  58,184

Loss from Continuing Operations before










Income Taxes



                  (3,794)


                  (4,498)


                (55,015)


                (18,117)


Income tax (benefit) expense



                     (688)


                       861


                     (995)


                    2,729

Loss from Continuing Operations, net










of Income Taxes



                  (3,106)


                  (5,359)


                (54,020)


                (20,846)


Income from discontinued operations, net











of income taxes



                       160


                         -  


                         61


                         -  

Net Loss



$                (2,946)


$                (5,359)


$              (53,959)


$              (20,846)













Loss per Share from Continuing Operations











Basic earnings per share



$                  (0.06)


$                  (0.10)


$                  (0.98)


$                  (0.39)


Diluted earnings per share



$                  (0.06)


$                  (0.10)


$                  (0.98)


$                  (0.39)













Weighted-Average Common Shares Outstanding











Basic



                  56,285


                  54,036


                  55,312


                  53,786


Diluted



                  56,285


                  54,036


                  55,312


                  53,786













(1)

Excludes depreciation, amortization and accretion, which is reported separately.







SAVVIS, Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(in thousands)











































December 31,


December 31,







2010


2009

ASSETS




Current Assets:







Cash and cash equivalents




$                     120,344


$                   160,815

Trade accounts receivable, net




65,058


45,754

Prepaid expenses and other current assets



32,359


21,217

Total Current Assets




217,761


227,786

Property and equipment, net




843,801


783,852

Goodwill





75,883


-

Intangible assets, net




19,540


404

Other non-current assets




26,665


12,716

Total Assets





$                  1,183,650


$                1,024,758










LIABILITIES AND STOCKHOLDERS' EQUITY













Current Liabilities:







Payables and other trade accruals



$                       73,445


$                     52,710

Current portion of long-term debt and lease obligations


17,881


17,479

Other accrued liabilities




84,101


68,314

Total Current Liabilities




175,427


138,503

Long-term debt, net of current portion



530,649


376,089

Capital and financing method lease obligations, net of current portion

216,508


223,897

Other accrued liabilities




74,937


76,452

Total Liabilities




997,521


814,941










Stockholders' Equity:




Common stock





566


545

Additional paid-in capital




886,593


862,834

Accumulated deficit




(688,388)


(634,429)

Accumulated other comprehensive loss



(12,642)


(19,133)

Total Stockholders' Equity




186,129


209,817

Total Liabilities and Stockholders' Equity


$                  1,183,650


$                1,024,758



SAVVIS, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)












Three Months Ended


Year Ended








December 31,


December 31,








2010


2009


2010


2009

Cash Flows from Operating Activities:









Net income (loss)




$                 (2,946)


$                (5,359)


$               (53,959)


$              (20,846)


(Income) loss from discontinued operations, net of income taxes


160


-


61


-



Income (loss) from continuing operations, net of income taxes


(3,106)


(5,359)


(54,020)


(20,846)

Reconciliation of net income (loss) from continuing operations to net cash provided by operating activities:









Depreciation, amortization and accretion


47,390


38,519


180,903


150,854

Non-cash, equity-based compensation


5,245


5,950


25,678


29,102

Accrued interest, net




6,894


(1,702)


10,511


4,578

Amortization of debt discount



741


3,691


10,127


14,319

Loss on debt extinguishment



-


-


7,535


-

Other, net




9


16


4,244


943

Net changes in operating assets and liabilities:










Trade accounts receivable, net


7,578


859


(15,504)


6,331


Prepaid expenses and other current and non-current assets


(1,923)


6,458


(19,559)


5,893


Payables and other trade accruals


5,132


7,597


17,553


2,322


Other accrued liabilities



3,196


1,441


9,652


(7,015)

Net cash provided by continuing operations


71,156


57,470


177,120


186,481

Net cash provided by discontinued operations


270


-


621


-

Net cash provided by operating activities


71,426


57,470


177,741


186,481















Cash Flows from Investing Activities:









Payments for capital expenditures


(43,811)


(57,132)


(202,554)


(132,936)

Acquisition of business, net of cash acquired


-


-


(112,790)


-

Cash received for disposition of business


1,459


-


1,459


-

Net cash used in investing activities


(42,352)


(57,132)


(313,885)


(132,936)















Cash Flows from Financing Activities:









Proceeds from long-term debt



-


-


643,500


2,865

Principal payments on long-term debt


(1,375)


(1,650)


(525,619)


(6,600)

Payments for debt extinguishment


-


-


(1,179)


-

Payments for debt issuance costs


(65)


-


(12,805)


-

Proceeds from stock option exercises


9,829


37


26,367


367

Payments for employee taxes on equity-based instruments


(229)


(130)


(3,326)


(1,749)

Principal payments under capital lease obligations


(3,843)


(1,055)


(23,141)


(7,145)

Other, net




-


(749)


(4,607)


(2,211)

Net cash provided by (used in) financing activities


4,317


(3,547)


99,190


(14,473)

Effect of exchange rate changes on










cash and cash equivalents



(1,095)


526


(3,517)


459















Net Increase (Decrease) in Cash and Cash Equivalents


32,296


(2,683)


(40,471)


39,531

Cash and Cash Equivalents, Beginning of Period


88,048


163,498


160,815


121,284

Cash and Cash Equivalents, End of Period


$              120,344


$              160,815


$              120,344


$              160,815















Supplemental Disclosures of Cash Flow Information:









Cash paid for interest



$                10,500


$                11,586


$                45,584


$                37,228



SAVVIS, Inc. and Subsidiaries

  Unaudited Selected Condensed Consolidated Financial Information

(in thousands)

























Three Months Ended



Year Ended





December 31,


September 30,



December 31,





2010


2009


2010



2010


2009

Segment Revenue:













Hosting



$              185,697


$             154,664


$                 176,724



$             673,352


$             607,296

Network



                  67,043


                 65,155


                     65,177



               259,632


               267,118

Total Revenue



$              252,740


$             219,819


$                 241,901



$             932,984


$             874,414















Segment Adjusted EBITDA:













Hosting



$                76,127


$               59,326


$                   66,892



$             261,259


$             239,290

Network



                  17,142


                 16,070


                     15,747



                 65,743


                 67,610

Corporate - Other (1)



                (25,482)


                (20,509)


                    (22,917)



                (90,824)


                (86,877)

Total Adjusted EBITDA (2)



$                67,787


$               54,887


$                   59,722



$             236,178


$             220,023





























Adjusted EBITDA Reconciliation:












Income from continuing operations


$                14,041


$               10,418


$                     3,469



$               24,490


$               40,067

Depreciation, amortization and accretion


                  47,390


                 38,519


                     50,335



               180,903


               150,854

Non-cash, equity-based compensation


                    5,245


                   5,950


                       5,435



                 25,678


                 29,102

Acquisition and integration costs


                    1,111


                         -  


                          483



                   5,107


                         -  

Adjusted EBITDA



$                67,787


$               54,887


$                   59,722



$             236,178


$             220,023















Reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations before Income Taxes:
























Adjusted EBITDA



$                67,787


$               54,887


$                   59,722



$             236,178


$             220,023

Depreciation, amortization and accretion


                (47,390)


                (38,519)


                    (50,335)



              (180,903)


              (150,854)

Non-cash, equity-based compensation


                  (5,245)


                  (5,950)


                      (5,435)



                (25,678)


                (29,102)

Acquisition and integration costs


                  (1,111)


                         -  


                         (483)



                  (5,107)


                         -  

Interest income



                         34


                        35


                            41



                      126


                      226

Interest expense



                (18,132)


                (14,266)


                    (18,391)



                (67,571)


                (57,976)

Other income (expense)



                       263


                     (685)


                    (12,230)



                (12,060)


                     (434)

Income (Loss) from Continuing Operations before Income Taxes















$                (3,794)


$                (4,498)


$                  (27,111)



$              (55,015)


$              (18,117)











































Leveraged Free Cash Flow Reconciliation:












Adjusted EBITDA



$                67,787


$               54,887


$                   59,722



$             236,178


$             220,023

Acquisition and integration costs


                  (1,111)


                         -  


                         (483)



                  (5,107)


                         -  

Cash capital expenditures



                (43,811)


                (57,132)


                    (56,576)



              (202,554)


              (132,936)

Cash interest paid



                (10,500)


                (11,586)


                    (14,298)



                (45,584)


                (37,228)

Interest income



                         34


                        35


                            41



                      126


                      226

Leveraged Free Cash Flow (3)


$                12,399


$              (13,796)


$                  (11,594)



$              (16,941)


$               50,085





























(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


Year





Ended


Ended





December 31, 2010








Revenue


$               252,740


$               932,984

Operating Expenses:






Cost of revenue (including non-cash, equity-based







compensation of $1,262 and $5,919)


                 129,563


                 500,749


Sales, general and administrative expenses (including







non-cash, equity-based compensation of $3,983 and $19,759)


                   61,746


                 226,842


Depreciation, amortization and accretion


                   47,390


                 180,903

Total Operating Expenses


                 238,699


                 908,494

Income from Continuing Operations


                   14,041


                   24,490


Loss on debt extinguishment


                           -  


                     8,735


Other income and expense


                   17,835


                   70,770

Loss from Continuing Operations before





Income Taxes


                    (3,794)


                  (55,015)


Income tax expense


                       (688)


                       (995)

Loss from Continuing Operations, net





of Income Taxes


                    (3,106)


                  (54,020)


Income from discontinued operations, net






of income taxes


                        160


                          61

Net Loss


$                  (2,946)


$                (53,959)








Adjusted EBITDA


$                 67,787


$               236,178

    As a percentage of revenue


27%


25%








Acquisition and integration costs


                     1,111


                     5,107








Adjusted EBITDA including acquisition and integration costs

$                 66,676


$               231,071

    As a percentage of revenue


26%


25%




SAVVIS, Inc. and Subsidiaries


Unaudited Supplemental Revenue Information


(in thousands, except per square foot amounts)




























Three Months Ended




December 31,


March 31,


June 30,


September 30,


December 31,




2009


2010


2010


2010


2010


Data Center Revenue












Colocation


$            86,892


$        82,467


$     84,281


$                 95,211


$                96,430


Managed hosting


67,772


70,284


73,898


81,513


89,267


























Data Center Metrics (1)












Total raised floor


1,433


1,477


1,477


1,564


1,541


Revenue space


878


889


885


957


938


Billed square feet


591


601


622


678


680


Utilization


67%


68%


70%


71%


73%














Average Billed Square Feet












Colocation


592.3


572.1


586.6


623.4


651.2


Managed hosting


22.9


23.8


25.1


26.8


28.1


Total Average Billed Square Feet


615.2


595.9


611.7


650.3


679.2














Average Monthly Data Center Revenue












      Per Billed Square Foot (2)












Colocation


$                   48.9


$                 48.1


$              47.5


$                    50.9


$                    49.4


Managed hosting


985.4


984.5


974.4


1,012.7


1,059.5













(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




December 31,


March 31,


June 30,


September 30,


December 31,




2009


2010


2010


2010


2010














Financial vertical


$                      57,742


$                      55,532


$                      60,417


$                      67,007


$                      69,698


Other


                      162,077


                      161,055


                      161,339


                      174,894


                      183,042


Total Revenue


$                    219,819


$                    216,587


$                    221,756


$                    241,901


$                    252,740








































Network Revenue Supplemental Information: 


Three Months Ended




December 31,


March 31,


June 30,


September 30,


December 31,




2009


2010


2010


2010


2010














Core (1)


$                      31,483


$                      31,670


$                      33,459


$                      36,339


$                      38,443


Sustaining (2)


                        33,672


                        32,166


                        30,118


                        28,838


                        28,600


Total Network Revenue


$                      65,155


$                      63,836


$                      63,577


$                      65,177


$                      67,043













(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.



SOURCE Savvis, Inc.