Taking out resistance up to $0.93. Previous 3Stocks pick back in play
Agreed. Been in and out of this stock since .70 ... .38.... and now back in at .91. Volume has picked up over the last couple days again and the future looks bright. Private investors Welsh, Carson, Anderson and Stowe are at the helm from the investment side although Constellation Ventures and General Electric have pitched in as well. Customers include Google, Microsoft, Intel, the list goes on - can't believe the stock is so low.
Also positive notes are that the government is looking to revamp its network infrastructure ($20 B worth) and where in the past names like Sprint, ATT, Nortel, IBM, etc.. have been given bids, it looks like Savvis has been preparing to be somewhat of a competitor with the big boys.
Also interesting is that Welsh Carson Anderson and Stowe have close ties to the Carlysle Group (George Bush Sr.'s) investment group. These two went in 1/2'ers on DexMedia a few years back for $8 B. Anyway, these guys have deep pockets and I believe have been at work creating a monster that will only gain notoriety in the coming months. Savvis (IMO) will get some of the $20 B being handed out by the U.S. Gov't w/ in a year which will only build on the credibility of 'The Company That Powers Wall Street' (Savvis).
Sorry for the book, but this is stock that will rock. No downside here. Get in now or later, it won't matter because this one is going UP.
Its on Fire $1.20
profit taking?
Been in and out of SVVS pre $1, currently out, but maybe I should be in.
looks good here i am in at 0.94 hope to see 2.00 in September..chart looks good
A nice move up,after the dip.
MACD Bullish...Stochastic Bullish...
Just picked some up at 1.19, taking out resistance and volume picking up
I have a rather large position in Savvis,15% of total eq. In @ .69 and again @.93. Closed today above resistance. 1.20. with a little more than average volume. Earnings coming out Tues. July 19th.
I think it's going to be positive! Nothing but good news and new business has been coming out. I copied and pasted Savvis info below. Any positive OR negative analysis/comments welcome.
SAVVIS, Inc., an information technology services company, provides integrated hosting, network, voice, digital content management, industry solutions, and professional services worldwide. Its hosting services include the facilities, networks, servers, storage, and operations to run business applications. The company's managed Internet protocol virtual private network services comprise hardware, management systems, and operations to transport voice, video, and data applications. SAVVIS' digital content management/media services provide a shared-managed infrastructure tied to workflow applications that enable the creation, production, and distribution of digital content and streaming media. These services enable customers to manage, share, store, and distribute their digital content inside and outside their organization. Its industry solutions integrate applications with its infrastructure to deliver services that enable industry-specific workflows and enterprise productivity. They support the financial services, media and entertainment, retail, and federal government markets. The company's professional services offer assistance and consultation in networking security, performance tuning and optimization, business recovery, operations, and migration. SAVVIS' other network services include Internet access, wholesale carrier networks, and voice services. It offers its services to organizations in the financial services, media, retail, professional services, healthcare, and manufacturing sectors. The company was founded in 1995. It was formerly known as SAVVIS Communications Corporation and changed its name to SAVVIS, Inc. in May 2005. SAVVIS is headquartered in Town & Country, Missouri.
Keep an eye on it.
May be ready to rock.
Updates posted here.... Previous 3SOF Picks
Link: http://www.3stocksonfire.org/trading/index.php?topic=246.0
Nice pop... Encouraged by today's action
Above the 50-day EMA....heading for the 200
May be cooking again...Hmmmm
Pre-Market (RT-ECN): 0.788 0.13 (+19.39%)
• InPlay: SAVVIS signs contract with Pfizer Health Solutions for managed hosting services
Briefing.com (Wed 3:36am)
• Loyalty Management Services Taps SAVVIS Global IT Infrastructure To Power Outsourced Loyalty Programmes
Business Wire (Wed 3:00am)
• Pfizer Health Solutions Outsources European-based IT Infrastructure and Hosting to SAVVIS
Business Wire (Wed 3:00am)
News Link: http://finance.yahoo.com/q/h?s=SVVS
A nice little move today, volume up, back above the 50-dma.
Technicals
Close Above the 50-day EMA
Close Above the 13-day EMA
Percentage Gainer
Last Price Quote is:
9.14%above 13-day EMA
5.12%above 50-day EMA
RS Rating: 9
Fundamentals
Key Data:
Market Cap (M): $118.04
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 02/21/2006
Last Analyst Rating: Neutral
we had a breakout yesterday on good volume MA 200 =0.78
maybe watch this one in the morning, w/ news out....
http://biz.yahoo.com/bw/060202/20060202005935.html?.v=1
NEWS: Thu, Feb 2, 2006
SAVVIS Reports 2005 Revenue up 8%, to $667 Million, Operating Cash Flow Improved $90 Million
Link: http://biz.yahoo.com/bw/060202/20060202005935.html?.v=1
Acting Chief Executive Officer Jack Finlayson, said, "The SAVVIS team delivered impressive results in 2005, with strong Adjusted EBITDA and cash generation as well as effective cost management and increased sales bookings. Fourth-quarter revenue of $171.5 million reflects the excellent sales results of 2005 - strong market acceptance of SAVVIS' products, from our innovative virtualized utility services to traditional colocation hosting, resulted in record sales bookings. The fourth-quarter revenue was driven by strong growth in our core Managed IP VPN and Hosting services, up 22% and 19%, respectively, from a year ago.
Recommendation
Stock is a Buy.
Comment
Moving Average Convergence/Divergence (MACD) indicates a Bullish Trend.
Chart pattern indicates a Strong Upward Trend.
Relative Strength is Bullish.
Up/Down volume pattern indicates that the stock is under Accumulation.
The 50 day Moving Average is rising which is Bullish.
The 200 day Moving Average is rising which is Bullish.
Look for Support at 0.83
SVVS going profitable...
Hi
It's very interesting...let's watch today
Bye
YUNUS
Savvis Names Philip J. Koen As CEO
Tuesday March 14, 10:26 am ET
Savvis Names Philip J. Koen As Chief Executive After Former CEO's Strip Club Debacle
ST. LOUIS (AP) -- Savvis Inc., a provider of computing, Internet and network services, on Tuesday said it named Philip J. Koen as chief executive and a director to replace former CEO Robert McCormick, who resigned after running an expensive tab with the corporate card at a topless bar.
ADVERTISEMENT
Jack Finlayson, interim CEO for the past five months, will continue as president and chief operating officer of the corporate networking services company.
McCormick resigned in November after an investigation into the $241,000 bill charged to his corporate American Express card at the New York City strip club, Scores.
McCormick and Savvis contended the bill at Scores should have been between $18,000 and $19,000. On March 8, Scores, American Express, Savvis and McCormick reached a confidential settlement to resolve a lawsuit over the bill.
Koen, 54, previously served as president and COO of Equinix, a provider of network data centers and Internet exchange services. Before that, he served as chief financial officer of Equinix.
Shares of Savvis added 2 cents to $1.08 in midday trading on the Nasdaq.
Volume still high ...over 2 million changing hands
they bringing SVVS up again Bid @ 1.13 ask @ 1.15 ;)
Nice...congrats to those that are in.
This one showed up on my filters when it broke to a new 50-day high on 3/1. I didn't act. Showed up again on the 6th. I still didn't get in.
I opted for AFOP which is doing me right today...
Good call on Savvis and don't forget to take some profits off the table.
JKN
Looking good BABY!! ;)
SVVS pps is now above EMA(200) .... as my previous post buyers will attract attention because of that, just look at the volume.... volume won't lie.. ;) LET'S GET IT ON!!! ;)
By the way i got in @ 1.07 this morning....I hope SVVS can give me nice return.. Hehehe.. ;) :D ;D ....goodluck!!
Hey Terlisa, thanks for the heads up on this one. I just took a position late in the day. This looks like it could be a nice turn around. I see their last earnings report was a slight disappointment but still the right direction.
Cheers
uc.
PS. Where are you Melf!
Quote from: usedcasting on March 14, 2006, 04:06:35 PM
Hey Terlisa, thanks for the heads up on this one. I just took a position late in the day. This looks like it could be a nice turn around. I see their last earnings report was a slight disappointment but still the right direction.
Cheers
uc.
PS. Where are you Melf!
You got it right UC, (just slightly) ;)
But I don't really much pay attention on their last earnings report
I based my trading on SVVS on 3 moving averages & the volume ... let's just hope for the best ;)
Ok... Let's get deeper, so we know where we may be able to take profits ;) :D
GLTA pips ;)
Another 10% on SVVS ...Yeah Rock on!!!! ;) :D ;D
SVVS will also break today the $1.26 resistance & that's happening now...SVVS currently trading @ $1.33
Goodluck!!
Quote from: Terlisa on March 15, 2006, 02:39:55 PM
SVVS will also break today the $1.26 resistance & that's happening now...SVVS currently trading @ $1.33
Goodluck!!
I'm smelling a strong close again today .. ha ha ha ;) :D ;D
Profit taking might take place tommorrow, what do you think TERLISA ???
Quote from: REALDEALS21 on March 15, 2006, 03:00:34 PM
Profit taking might take place tommorrow, what do you think TERLISA ???
REALDEAL,
It might but i'm not worried, SVVS just crossed the EMA(200) & that's a very bullish situation right now... If you ask me, I'll ride this baby until SVVS met the upward major resistance & that's just below 2 bucks or higher.. it depends on the direction of the uptrend ;)
SVVS broke the resistance today @ 1.26 made a new 52week high ;)
Goodluck!!
Bid - $1.35 Bid Size - 95000
As my little boy would say, YEEESSSSS!
uc.
I put a limit order in for this stock at 1.12, and it got filled near the end of the day! I never thought I'd get this, after seeing it in the 1.40's this morning. It bounced right off the 5-day EMA and closed a few pennies higher. Hope this continues with the uptrend and today was just profit-taking. Stop is at 1.01 just in case the trend changes.
Leaira
Quote from: Leaira on March 16, 2006, 09:00:42 PM
I put a limit order in for this stock at 1.12, and it got filled near the end of the day! I never thought I'd get this, after seeing it in the 1.40's this morning. It bounced right off the 5-day EMA and closed a few pennies higher. Hope this continues with the uptrend and today was just profit-taking. Stop is at 1.01 just in case the trend changes.
Leaira
Congrats Leaira ;)
Yesterday SVVS went down 15% & i think that's normal for a stock that rose
107% in 3 weeks ... I should have sold it yesterday when it gapped up @ open for 30% profit & buy it again today, damn! what a waste ;D ;D ;D
SVVS still a bullish stock, i'll keep holding SVVS ;)
Weekly chart perfect!! ;)
SVVS bouncing from the trendline & the 50% fibonacci retracement level.. looks good here ;) :D
Let's get it on!! :D ;D ;)
I would not surprise if i see SVVS @ $2 level in the near-term, my previous chart says take profit above $2... So i'll let the profit run for now ;)
*** SAVVIS Elects Jonathan C. Crane as Chairman of the Board
*** SAVVIS in Compliance with Nasdaq Requirements
http://finance.yahoo.com/q/h?s=SVVS
Nice Find Terlisa... Still a buy for monday AM? pehaps looking for 20% or so?
I have not looked at fundementals yet...
Do you have a screener for your 3 M's ?? Any new ones you are watching that you would like to share?
ZENX should be a good multi month play this spring, i am hoping to buy more in the .60's before the storms begin, also hope to get back into HOM under 6
Have a great weekend, thanx for the replys on LL's thread cheers joe
Quote from: Terlisa on March 14, 2006, 03:49:21 PM
By the way i got in @ 1.07 this morning....I hope SVVS can give me nice return.. Hehehe.. ;) :D ;D ....goodluck!!
Sitting @ more than
54%... great run ;)
As you can see in the weekly chart, Bull Power is still showing that the bulls are in control of the stock.. ;)
Quote from: Terlisa on April 07, 2006, 10:35:07 PM
Quote from: Terlisa on March 14, 2006, 03:49:21 PM
By the way i got in @ 1.07 this morning....I hope SVVS can give me nice return.. Hehehe.. ;) :D ;D ....goodluck!!
Sitting @ more than 54%... great run ;)
As you can see in the weekly chart, Bull Power is still showing that the bulls are in control of the stock.. ;)
I'm thinking to take profits tomorrow... with 8,000 shares close today @ 1.89 i'm happy with
76%[/color]
Goodluck if you're still in, looks like bulls still in control of SVVS ;)
SAVVIS Announces First-Quarter Investor Webcast on Monday, April 24 at 5:00 PM EDT
Thursday April 6, 4:15 pm ET
ST. LOUIS--(BUSINESS WIRE)--April 6, 2006--SAVVIS, Inc. (NASDAQ:SVVS - News), a leading global IT utility, today announced it will host its first-quarter investor webcast and conference call on Monday, April 24, 2006, at 5:00 PM EDT. Senior executives will discuss the company's financial results for the first quarter 2006 and update investors on company operations and the outlook for 2006.
I hope you guys got out this morning as i do... SVVS has reached my initial target just below 2 ;)
Chart: March 14, 2006
Quote from: Alister on April 11, 2006, 01:08:55 PM
I hope you guys got out this morning as i do... SVVS has reached my initial target just below 2 ;)
Chart: March 14, 2006
SVVS is now going for correction..
SVVS prints higher price but WEEKLY-MACD Histogram ticks down....It's a sign to run if you are a Medium-term trader ;)
9:29AM SAVVIS Comm reaffirms 2006 rev guidance of $730-750 mln vs $741.8 mln consensus (SVVS) 1.89 : Co issues slide show in 8-K. Reaffirms 2006 rev guidance of $730-750 mln vs $741.8 mln consensus. Says long-term target is to grow revenue 10-15% annually.
• SAVVIS Names Jonathan C. Crane President
Business Wire (Wed, May 31)
• Savvis Names Ousley Chairman
AP (Wed, May 31)
SAVVIS, INC. Files SEC form 8-K, Entry into a Material Definitive Agreement, Change in Directors or Principal Officer
EDGAR Online (Fri, Jun 2)
Form 8-K for SAVVIS, INC.
2-Jun-2006
Entry into a Material Definitive Agreement, Change in Directors or Principal Officer
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
Chairman of the Board Compensation
On May 31, 2006, the Board of Directors appointed James E. Ousley to serve as the Company's Non-Executive Chairman of the Board. Mr. Ousley is not an employee or officer of the Company. In connection with this appointment, the Compensation Committee of the Board of Directors approved the following compensation package for Mr. Ousley as Non-Executive Chairman of the Board:
• Aggregate annual cash retainer of $50,000 (which amount includes the $15,000 annual cash retainer he receives as a non-employee director);
• Attendance at each meeting of the Board of Directors (in person) of $3,000;
• Attendance at each meeting of the Board of Directors (by telephone) of $2,500; and
• A grant of options to purchase 75,000 shares of common stock at an exercise price of $1.94 per share, the closing price of the common stock on May 26, 2006.
Amended Employment Agreement
The information regarding the executive's amended Employment Agreement referred to in Item 5.02(c) below is incorporated in this Item 1.01 by reference.
ITEM 5.02. DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS.
(b) On May 31, 2006, the Board of Directors of SAVVIS, Inc., a Delaware corporation (the "Company"), accepted the resignation of John M. Finlayson as a member of the Board of Directors of the Company and as President and Chief Operating Officer of the Company effective immediately.
(c) On May 31, 2006, the Board of Directors appointed Jonathan C. Crane President of the Company and accepted his resignation as Chairman of the Board, effective immediately. Mr. Crane will remain a member of the Board of Directors of the Company. In connection with his appointment as President, the Compensation Committee of the Board agreed to amend Mr. Crane's employment agreement to increase his base salary to $425,000 per year and to reimburse him for reasonable living expenses for six months prior to his relocation to St. Louis. Mr. Crane has also been granted an additional 800,000 restricted stock units that will vest over four years provided that the Company meets certain performance criteria, and he was also granted options to purchase 3,000,000 shares of the Company's common stock at an exercise price of $1.89 per share, the closing price of the common stock on May 25, 2006.
In addition, on May 31, 2006, the Board of Directors appointed James E. Ousley, a member of the Company's Board of Directors since April 2002, to serve as the Company's Non-Executive Chairman of the Board. Mr. Ousley is not an employee or officer of the Company.
--------------------------------------------------------------------------------
Since joining the Company in March 2006, Mr. Crane, 56, has served as an officer of the Company with the title Chairman of the Board. Prior to joining the Company, Mr. Crane served as Chief Strategy Officer-Executive Vice President, Corporate Development at MCI, Inc. from January 2003 to January 2006. While serving in this capacity, Mr. Crane also served as President, International and Wholesale Markets for MCI from May 2004 to October 2004, and in 2003, he served as MCI's Executive Vice President, Marketing. Furthermore, Mr. Crane served as Chairman of the Board of Digex, Inc., an enhanced hosting company, during 2003. Upon rejoining MCI in January 2002, Mr. Crane served as Chief of Staff- Sales and then President- Sales, Marketing and Customer Service until his appointment as Chief Strategy Officer in January 2003. Prior to joining MCI, Mr. Crane served as Chief Executive Officer of Adero, Inc. from 1999 to 2001, and he served as Chief Executive Officer of Marcam Solutions, Inc. from 1997 to 1999. Mr. Crane received a B.A. degree in History from Dartmouth College.
The technical chart, shows the stock is in strong bull market as MACD is above 0 and K line is on top of D line. The long term trend is also positive as both 50 day and 200 day moving averages are going up. In addition since ROC is still not far from oversold level, there is still plenty of room to go up.
Support @ $2.00...1.95...1.88
Resistance @ $2.19
Volume: 4,007,281
Avg Vol (3m): 3,151,100
Today's Candlestick Patterns:
White Closing Marubozu
Definition:
The White Closing Marubozu is a single candlestick pattern characterized by a long white body with no upper shadow. This is an extremely strong bullish candlestick pattern.
Technicals
Last Price Quote is:
7.38%above 13-day EMA
21.41%above 50-day EMA
RS Rating: 99
Fundamentals
Key Data:
Market Cap (M): $365.35
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 07/18/2006
Last Analyst Rating: Buy
Press Release Source: SAVVIS, Inc.
Investor Advisory: SAVVIS 1-for-15 Reverse Split Effective June 6
Monday June 5, 5:30 pm ET
ST. LOUIS--(BUSINESS WIRE)--June 5, 2006--In keeping with its announcement of May 10, 2006, SAVVIS, Inc. (NASDAQ:SVVS - News), a global leader in IT infrastructure services for business applications, will effect a 1-for-15 reverse split of its common stock prior to the opening of trading tomorrow, June 6, 2006, for stockholders of record as of the close of business today, June 5, 2006. Effective June 6, SAVVIS will have approximately 13.0 million shares of common stock outstanding. Stockholders will receive cash in lieu of any fraction of a share that any stockholder would otherwise be entitled to receive as a result of the reverse stock split.
SAVVIS common stock has been assigned a new CUSIP number, 805423308. SAVVIS common stock will trade under the ticker symbol "SVVSD" for 20 trading days following the reverse split to designate that it is trading on a post-reverse stock split basis. The common stock will resume trading under the symbol "SVVS" after the 20-trading day period.
Further simplifying the company's capital structure, holders of SAVVIS' Series A Preferred stock have agreed to exchange their Preferred shares for common, as announced on May 10, 2006. The company anticipates that the exchange will take place on June 30, 2006. SAVVIS will issue 37.4 million shares of common stock to effect the exchange, including 9.3 million shares that are the equivalent of 58% of the value of future dividends through March 2010. Had the Preferred Stock remained in place through the redemption date of March 2010, it would have been convertible to 44.2 million shares of common stock.
About SAVVIS
SAVVIS, Inc. (NASDAQ:SVVS - News) is a global leader in IT infrastructure services for business applications. With an IT services platform spanning North America, Europe, and Asia, SAVVIS has over 5,000 enterprise customers and 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 25 data centers, and automated management and provisioning systems. For more information about SAVVIS, 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 affect actual results are set forth as risk factors in SAVVIS' SEC reports and filings, including its annual report on Form 10-K and all subsequent filings. SAVVIS assumes no obligation to update or supplement forward-looking statements.
Contact:
SAVVIS, Inc.
Media:
Carter Cromley, 703-667-6110
[email protected] or
Investors:
Elizabeth Corse, 703-667-6984
[email protected]--------------------------------------------------------------------------------
Source: SAVVIS, Inc.
End of day.......1 year chart
All SVVS Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Thank You....and good luck with all your trades....make some $$$
I will also leave you Friday's closing chart......
Getting some attention...... ;)
After this stock took a, 1-for-15 reverse split of its common stock on June 6, 2006.
This pup has a strong looking chart.
MACD is bouncing off the center line with a Bullish cross over
Looks to me that we have a Cup with Handle (continuation) Pattern on the chart.
Great volume and a nice looking candlestick today.
52wk Range: 9.00 - 34.09
Volume: 1,375,095
Avg Vol (3m): 348,203
Technicals
MACD - Bullish
Last Price Quote is:
6.99%above 13-day MA
9.99%above 50-day MA
RS Rating: 91
Fundamentals
Key Data:
Market Cap (M): $1,384.57
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 02/08/2007
Last Analyst Rating: Hold
Quote from: setravis on December 05, 2006, 09:06:13 PM
Getting some attention...... ;)
After this stock took a, 1-for-15 reverse split of its common stock on June 6, 2006.
This pup has a strong looking chart.
MACD is bouncing off the center line with a Bullish cross over
Looks to me that we have a Cup with Handle (continuation) Pattern on the chart.
Great volume and a nice looking candlestick today.
This thread needs an update....... 8)
SAVVIS Reports Strong First Quarter Results
Announced it will manage and install new digital media archiving and retrieval system for CBS Television Network.
The project includes implementing a digital archive, retrieval, and distribution system for the CBS television entertainment library that will allow CBS to search, manage, store and repurpose assets.
Announced that D.R.M Networks has selected SVVS Content Studio to be integrated as part of its complete digital rights management package.
52wk Range: 22.50 - 49.43
Volume: 2,631,389
Avg Vol (3m): 562,314
Technicals
Record Price High
Gap Up
Percentage Gainer
Price Gainer
MACD is Bullish
Stochastic is Bullish
Last Price Quote is:
10.74%above 13-day MA
16.01%above 50-day MA
RS Rating: 92
Fundamentals
Reports Earnings
Key Data:
Market Cap (M): $2,556.74
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 07/19/2007
Last Analyst Rating: Buy
Support @ $48.20...45.78...44.29
Resistance @ $53.36
ST. LOUIS, Apr 25, 2007 (BUSINESS WIRE) -- SAVVIS, Inc. (SVVS, Trade), a global leader in IT infrastructure services for business applications, announced today that its revenue for the first quarter of 2007 totaled $205.2 million. Income from operations, which included $125.2 million from the gain on the sale of non-strategic assets, was $139.0 million in the first quarter 2007, and net income was $114.5 million.
First quarter operating cash flow was $28.3 million, and cash capital expenditures were $35.8 million, of which $12.7 million was for previously-announced growth projects, including the build-out of four new data centers and SAVVIS' next-generation network. Total cash and cash equivalents were $221.6 million at March 31, 2007.
Results for the first quarter of 2007 included a $125.2 million gain on the sale of non-strategic assets, and $3.6 million of non-recurring, colocation revenue related to the resolution of a contractual dispute that had been reserved for in 2006. Excluding the impact of these non-recurring items:
-- first quarter 2007 revenue would be $201.6 million, up 12% from the same period a year ago and essentially flat compared to the prior quarter;
-- gross profit, defined as total revenue less cost of revenue, would be $84.9 million, up 27% from the same period a year ago and 3% from the prior quarter, and would be 42% of current-quarter revenue;
-- income from operations would be $10.1 million, compared to $3.7 million in the same period a year ago and $11.6 million in the prior quarter; and
-- Adjusted EBITDA* would be $39.6 million, up 56% from the same period a year ago and 10% from the prior quarter, resulting in a 20% Adjusted EBITDA margin.
Chief Executive Officer Phil Koen said, "Our first quarter financial results reflect continued strong growth in SAVVIS' core revenue from hosting services, with managed hosting revenue up 37% from a year ago, and 4% from last quarter. Our customers, and industry analysts, agree that SAVVIS provides a unique value proposition in offering IT infrastructure as a service. Our strong Adjusted EBITDA performance in the quarter demonstrates the success of the SAVVIS business model in generating margin improvement."
Total revenue for the first quarter increased 14% from a year ago and 2% from the fourth quarter 2006. Excluding $3.6 million of non-recurring revenue reported in colocation revenue, total revenue increased 12% from a year ago and was up slightly compared to the fourth quarter 2006.
Strength in hosting revenue reflected strong customer demand for managed hosting services and re-pricing of existing colocation contracts to market rates. Managed hosting services contributed 25% of total revenue up from 20% of revenue a year ago and 24% in the fourth quarter 2006. Virtualized and utility services contributed $12.1 million of managed hosting revenue, up 152% from a year ago and 17% from the fourth quarter.
Network services revenue consists of revenue from managed IP VPN services, internet access services sold to customers using SAVVIS hosting services, and bandwidth services to wholesale customers. Network services revenue was essentially flat in the first quarter compared to the same period last year. Compared to the fourth quarter 2006, first-quarter network services revenue declined 4%. Hosting customers continued to increase their use of SAVVIS networks for data transport, driving revenue growth, which was offset by declines in wholesale bandwidth volumes and in managed IP VPN services as SAVVIS transitions its service offerings with the roll-out of its next-generation network expected to occur in the second half of 2007.
Other services revenue includes revenue from two sources that, as previously announced, SAVVIS expects will be eliminated in 2007: $2.4 million from Telerate, which is migrating its customers to Reuters products in 2007, and $4.1 million from the non-strategic CDN assets sold in January 2007. CDN customers are continuing to transition to the purchaser of those assets. SAVVIS' total revenue less other services revenue for the first quarter 2007 increased 20% from the first quarter 2006 and 5% from the fourth quarter 2006.
Cost of revenue was $116.7 million, including $1.4 million of non-cash equity-based compensation costs, in the current quarter, resulting in gross profit as a percentage of total revenue, or gross margin, of 43% in the current quarter. The improvement in gross margin reflects SAVVIS' scalable business model and ongoing cost-optimization efforts.
Sales, general, and administrative expenses ("SG&A") for the current quarter were $53.2 million, as compared to $43.4 million for the same period last year and $53.5 million in the fourth quarter of 2006. SG&A included non-cash equity-based compensation costs for the current quarter of $6.4 million, as compared to $1.6 million for the same period last year and $6.0 million in the fourth quarter 2006. As a percentage of revenue, excluding non-cash equity-based compensation costs, SG&A was 23% in the current quarter, the same as in the first quarter 2006 and down from 24% in the fourth quarter 2006.
SAVVIS realized a gain of $125.2 million from the sale of non-strategic assets in January 2007, driving income from operations for the first quarter to $139.0 million. SAVVIS' consolidated net income was $114.5 million in the first quarter, compared to net losses of $12.4 million in the same period last year and $6.8 million in the fourth quarter 2006.
In the first quarter of 2007, SAVVIS recorded income tax expense of $6.1 million related primarily to U.S. alternative minimum tax related to the sale of non-strategic assets. While the company utilized previously-generated Net Operating Loss (NOL) deductions in computing income-tax expense, IRS regulations limit the use of NOL deductions to 90% for U.S. alternative minimum tax purposes.
Cash Flow
Net cash provided by operating activities was $28.3 million in the first quarter. Cash capital expenditures for the quarter totaled $35.8 million, which included $12.7 million for previously-announced growth projects including the next-generation network and the build-out of four new data centers. SAVVIS' cash position at March 31, 2007, was $221.6 million, compared to $98.7 million at December 31, 2006, and $49.6 million at March 31, 2006.
Financial Outlook
Chief Financial Officer Jeff Von Deylen said, "This year is a transitional period for SAVVIS, as we undertake two critical growth projects: the deployment of our next-generation network and the build-out of four new data centers. The sale of non-strategic assets, completed in January, will fund a significant portion of those projects. Continued growth in our hosting revenue in the first quarter reflects our expectation that hosting will drive SAVVIS' financial performance improvements in 2007. We've also achieved continued success in our ongoing margin-improvement efforts, and therefore are raising our full year guidance for Adjusted EBITDA from a range of $145-155 million to $160-170 million. Our financial and operational achievements for 2007 are building the foundation for strong revenue and Adjusted EBITDA performance in 2008."
SAVVIS management's current expectations for 2007 financial results include:
-- Total revenue in a range of $820-835 million, including
-- growth in total Hosting revenue of 27-30%,
-- Network services revenue declining 3-4%, and
-- Other services revenue declining to near zero by the end of
the year;
-- Adjusted EBITDA in a range of $160-170 million, reflecting an
Adjusted EBITDA margin of approximately 20%, including
-- approximately $7-9 million of Adjusted EBITDA impact from
operating four new data centers, as operating expenses precede
anticipated customer revenue; and
-- Cash capital expenditures of $340-350 million, including $35-40
million for the next-generation network upgrade and approximately
$200 million for the four new data centers, with approximately
60-70% of the remainder reflecting ongoing customer-growth-based
investments.
-- Capital expenditures for 2007 will be primarily funded by
existing resources and proceeds from the January sale of
non-strategic assets.
-- SAVVIS anticipates bringing its four new data centers online
beginning in the fourth quarter of 2007. Those data centers
are expected to generate approximately $50 million of revenue
in 2008 at approximately 40% Adjusted EBITDA margins.
* Adjusted EBITDA
"Adjusted EBITDA" represents income from operations before depreciation, amortization and accretion, gains or losses on sales of assets, 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.
Investor Conference Call
SAVVIS will webcast an investor conference call today, April 25, 2007, at 5:30 PM EDT. 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 at +1 703-639-1317 and 866-802-4305 (in North America, toll free). Recorded replays will be available on the website for six months, and by telephone for two weeks, at +1 703-925-2533 and 888-266-2081 (in North America, toll free) with the access code 1066031, beginning at 8:00 PM EDT today.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results, including financial performance and product growth, 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, variability in pricing for SAVVIS' products, highly competitive markets, rapid evolution of technology, variability in the availability and terms of financing, uncertainties related to merger and acquisition activity, changes in our operating environment, and changes in regulatory environments. The forward-looking statements contained in this document speak only as of the date of publication, April 25, 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.
About SAVVIS
SAVVIS, Inc. (SVVS, Trade) is a global leader in IT infrastructure services for enterprise 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 24 data centers, and automated management and provisioning systems. For more information about SAVVIS, visit www.savvis.net.
SOURCE: SAVVIS, Inc.
SAVVIS, Inc.
Investors:
Elizabeth Corse, 703-667-6984
[email protected] or
Media:
Carter Cromley, 703-667-6110
[email protected] Copyright Business Wire 2007 ********************************************************************** As of Saturday, 04-21-2007 23:59, the latest Comtex SmarTrend? Alert, an automated pattern recognition system, indicated an UPTREND on 03-20-2007 for SVVS @ $42.86. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright ? 2004-2007 Comtex News Network, Inc. All rights reserved.
Savvis swings to profit; shares rise.......
Savvis Inc.
Shares surged 14% to $51.93 in Thursday morning trade. Late Wednesday, the St. Louis-based provider of IT infrastructure services reported first-quarter net earnings of $114.5 million, or $2.13 a share, compared with a net loss of $23.6 million, or $1.95 a share, in the year-ago period. Results for the first quarter of 2007 included a $125.2 million gain on the sale of assets. Revenue rose to $205.2 million from $180 million last year. Analysts polled by Thomson Financial were expecting, on average, revenue of $197.3 million. Savvis forecast 2007 revenue of $820 million to $835 million; analysts are looking for revenue of $825.6 million.
AP
Savvis Shares Touch 52-Week High on 1Q
Thursday April 26, 4:13 pm ET
Shares of Savvis Reach 52-Week High After Company Swings to First-Quarter Profit
NEW YORK (AP) -- Shares of Savvis Inc. surged Thursday after the information technology outsourcer swung to a first-quarter profit and beat analysts' revenue expectations.
The Town and Country, Mo.-based company late Wednesday reported $205.2 million of revenue for the period, up 14 percent year-over-year and above Wall Street's $197.3 million forecast.
Merriman Curhan Ford analyst Colby Synesael wrote in a client note that Savvis is benefiting from companies outsourcing their networks to save money and run their businesses more efficiently.
Savvis' shares closed Wednesday down almost 6 percent for the previous two days as investors worried the company's clients aren't renewing contracts. Goldman Sachs analyst Jason Armstrong said those concerns proved correct, but this is actually a good sign.
In a note to clients, Armstrong said he interprets customer churn to mean the company is comfortable letting customers leave because Savvis is confident it is replacing those deals with a pipeline of higher-priced contracts.
Shares of Savvis rose $6.89, or 15.1 percent, to close at $52.56 on the Nasdaq Stock Market, having touched as high as $53.47 during the session and breaking their previous 52-week high of $49.43.
Worth putting up a chart.......
may have the coil effect to pop it on up,need the volume boost !
Recovered...
Target $12-19, stop $7.75. SAVVIS, Inc. provides managed information technology services to businesses and government agencies worldwide.
52wk Range: 4.61 - 25.39
Volume: 758,710
Avg Vol (3m): 511,162
Technicals
Last Price Quote is:
6.50%above 13-day MA
2.42%above 50-day MA
RS Rating: 52
Fundamentals
Key Data:
Market Cap (M): $418.62
P/E Ratio: 6.00
PEG Ratio: N/A
Next Earnings: 02/09/2009
Last Analyst Rating: Hold
UPDATE - Savvis posts surprise Q4 profit, shares up
ST. LOUIS, Feb 04, 2009 (BUSINESS WIRE) -- Savvis, Inc. (SVVS, Trade), a global leader in IT infrastructure services, today reported its fourth quarter 2008 financial results. For the quarter, Savvis reported revenue of $222.4 million and income from operations of $15.0 million. The company also reported net income of $3.0 million, or $0.06 per share, compared to a loss of ($2.5) million, or ($0.05) per share, in the fourth quarter of 2007.
Revenue in the quarter increased 2%, compared to the third quarter of 2008. This improvement was achieved in spite of the worsening global macro economic environment. On a year-over-year basis, revenue was up 12%, compared to the fourth quarter of 2007. Year-over-year, overall Hosting revenue was up 24%, reflecting continued enterprise adoption of outsourced IT infrastructure solutions.
Adjusted EBITDA in the quarter of $52.0 million was up 9% from the third quarter of 2008 and up 32% from the fourth quarter of 2007. Growth in adjusted EBITDA was the result of improved revenue and a continued focus on cost savings.
For full year 2008, revenue increased 8% over 2007, while adjusted EBITDA improved 15%. The company reported a loss in 2008 of ($9.2) million, or ($0.17) per share, compared to 2007 net income of $250.6 million, or $4.51 per diluted share. The results for 2007 included a $305.7 million gain on the sale of data center and CDN assets and a $45.1 million expense incurred for the extinguishment of subordinated debt.
"I'm just delighted that we hit a new milestone and became adjusted free cash flow positive in the fourth quarter," said Phil Koen, chief executive officer of Savvis. "We are also pleased with our fourth quarter year-over-year growth in revenue and adjusted EBITDA of 12% and 32%, respectively. However, we are mindful that general economic conditions continue to be weak and that there is considerable economic uncertainty, which we will be facing in 2009."
Fourth Quarter Results
Total Savvis revenue for the fourth quarter was $222.4 million, an increase of 12% compared to revenue of $197.8 million in the fourth quarter of 2007 and an increase of 2% when compared to $218.4 million of revenue in the third quarter of 2008. When compared to the third quarter of 2008, fourth quarter revenue was negatively impacted by a 16% reduction in average sterling exchange rates between the third and fourth quarters of 2008. On a constant exchange basis, the quarterly sequential growth rate for Hosting revenue would have been 5% and total revenue growth would have been 3%.
Income from operations of $15.0 million showed an improvement from the $2.8 million recorded in the fourth quarter of 2007 and the $11.1 million for the third quarter of 2008. Both the third and fourth quarters of 2008 had favorable non-cash compensation adjustments.
For the fourth quarter, adjusted EBITDA was $52.0 million, an increase of 32% from adjusted EBITDA of $39.4 million in the fourth quarter of 2007 and an improvement of 9% when compared to $47.7 million of adjusted EBITDA in the third quarter of 2008. Adjusted EBITDA margin for the quarter was 23%, which reflected a year-over-year improvement of approximately 300 basis points and a quarter-over-quarter improvement of approximately 100 basis points.
The company's consolidated net income was $3.0 million in the fourth quarter of 2008, compared to a loss of ($2.5) million in the fourth quarter of 2007 and a loss of ($0.6) million in the third quarter of 2008. Earnings per share were $0.06 in the fourth quarter of 2008, compared to a loss per share of ($0.05) in the fourth quarter of 2007 and ($0.01) in the third quarter of 2008.
Hosting
Overall Hosting revenue was $150.9 million in the fourth quarter, with Managed Hosting contributing $67.7 million, or 45%. Year-over-year, Managed Hosting revenue grew 14%, as outsourced enterprise IT solutions continued to move into the mainstream. On a quarter-over-quarter basis, Managed Hosting revenue grew 2%. While enterprise customers continued to explore outsourced IT solutions for cost savings and other benefits, the internal approval process remained lengthy.
Colocation contributed $83.2 million to overall Hosting revenue in the fourth quarter, or 55%. Year-over-year, Colocation grew 34%, as the industry remained stable throughout 2008. On a quarter-over-quarter basis, Colocation grew 6%, as companies continued to turn to outsourcing during the difficult economic times. This growth reflects the value offered to customers through the company's new data centers, good utilization and strong pricing.
Network Services
In the fourth quarter, Network Services revenue was 32% of overall revenue, or $71.5 million. Network Services revenue for Savvis declined (6%) from the fourth quarter of 2007 and (3%) when compared to the third quarter of 2008.
Highlights
For the fourth quarter of 2008, the Financial Vertical represented 19% of total revenue, or 26% including revenue contribution from Reuters. While Financial Vertical revenue in the quarter showed slight growth over the third quarter of 2008, on a year-over-year basis it was up 21%.
For Hosting, revenue of $150.9 million in the fourth quarter of 2008 represented 24% growth over the fourth quarter of 2007. Software-as-a-service (SaaS) revenue grew 12%, quarter-over-quarter, as the company continued to focus on this exciting new area. For 2009, Savvis expects to be making several Cloud-related product announcements, as the company addresses the specific needs of the enterprise Cloud customer.
Cash Flow and Balance Sheet
Net cash provided by operating activities was $44.9 million in the fourth quarter of 2008, compared to $27.1 million in the fourth quarter of 2007. Cash capital expenditures for the quarter totaled $36.9 million, which included $13.3 million for the build-out of new data centers.
The long-term debt and capital leases for Savvis, as of December 31, 2008, totaled $605.1 million. The company's cash position at December 31, 2008, was $121.3 million, compared to $116.0 million at September 30, 2008.
Full Year Results
For the full year, revenue totaled $857.0 million, or year-over-year growth of 8%. Income from operations was $26.5 million in 2008 and reflects higher depreciation and amortization related to the company's global data center expansion. Adjusted EBITDA for 2008 was $184.6 million, a 15% improvement over 2007.
Highlights for 2008 include the opening of four new data centers and the completion of the two-phase global data center expansion. In addition, the company introduced its software-as-a-service (SaaS) offering. The company also implemented SAP, reduced headcount and improved productivity, during the year.
Significant year-over-year trends include 17% revenue growth in the Financial Vertical and overall Hosting revenue growth of 19%. For 2008, Colocation revenue improved 18%, while Managed Hosting was up 20%. In addition to strong financials, Savvis refinanced its existing revolving credit facility with Wells Fargo Foothill and established a UK-based facility of approximately 35GBP million.
"In an overall difficult environment, we're pleased we were able to report annual pro forma adjusted EBITDA growth of 26% and, more importantly, established a base for positive free cash flow generation and growth in adjusted EBITDA in 2009," said Phil Koen.
Financial Outlook
"In 2009, we expect to face a difficult economic environment and, as a result, have factored a cautious view into our guidance," said Jeff Von Deylen, chief financial officer of Savvis. "We expect our network business to remain under pressure, modest hosting growth, industry-wide IT spending to be down for the year, and that the sales cycle will remain elongated."
For full year 2009, Savvis expects the following:
-- Potential loss of ~$27 million in annualized revenue related to the American Stock Exchange within the first half of 2009, due to its acquisition by NYSE Euronext
-- Planned December 2008 transition of a client in the Chicago data center, generating ~$5 million in annualized revenue, due to the company's unwillingness to renew its contract at below-market rates
-- Year-over-year exchange rate volatility revenue impact of ~$12 million, mainly from UK operations
"Against this wider economic backdrop of layoffs, bailouts and disappointing results, Savvis is pleased to be providing guidance metrics that reaffirm its dedication to adjusted EBITDA growth and positive free cash flow in 2009," said Jeff Von Deylen. "At this point, we are refraining from providing 2009 revenue guidance. The reality is that these are turbulent times, and at present, visibility into 2009 is unclear. However, we will provide updates throughout the year."
For full year 2009, Savvis is focused on driving the following metrics:
-- Adjusted EBITDA of $185 to $195 million, slightly above 2008
-- Total cash capital expenditures of $110 to $140 million
-- Cash interest expense of approximately $40 to $45 million
-- Free cash flow of $15 to $30 million
Investor Conference Call
Savvis will webcast an investor conference call today, February 4, 2009, at 10:00 a.m. ET. Both the webcast and supporting presentation will be available at savvis.net on the Investor Relations page. A live conference call will also be available by telephone at (866) 802-4290 (toll free in North America) and at (703) 639-1316. A replay will be available on the Web site for six months. Investors may also access the replay by telephone through Wednesday, February 18, at (888) 266-2081 (toll free in North America) and at (703) 925-2533, by using the access code 1326295.
About Savvis
Savvis, Inc. (SVVS, Trade) is an outsourcing provider of managed computing and network infrastructure for IT applications. By outsourcing to Savvis, enterprises can focus on their core business while Savvis ensures the quality of their IT infrastructure. Leading IT organizations around the world have selected Savvis to help them improve their service levels, reduce capital expense and deal with the rising costs of bandwidth, energy, real estate, staff and expertise. As a pioneer in utility computing, Savvis understands and harnesses the latest advances in technology like virtualization, cloud computing and support process automation. For more information about Savvis, 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, 2007, 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; 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 our operating environment; and changes in regulatory environments. The forward-looking statements contained in this document speak only as of the date of publication, February 4, 2009. 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 financial results. "Adjusted EBITDA" represents income from operations before depreciation, amortization and accretion, gains and losses on sales of assets, 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. "Adjusted free cash flow" represents adjusted EBITDA less cash capital expenditures and less cash interest, net. We have included information concerning adjusted 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. "Pro forma" results exclude certain revenue and costs related to exited contracts and sold assets. We have included information concerning pro forma results because we believe they enable investors to better compare current results to results of prior periods. The calculations of adjusted EBITDA and pro forma results are not specified by United States generally accepted accounting principles. Our calculations of adjusted EBITDA and of pro forma results may not be comparable to similarly-titled measures of other companies.
SOURCE: Savvis, Inc.
Savvis, Inc.
Investors:
Peggy Reilly Tharp, 314-628-7491
[email protected] or
Media:
Carter Cromley, 703-667-6110
[email protected] Copyright Business Wire 2009
UPDATE 1-Savvis posts surprise Q4 profit, shares up
Wed Feb 4, 2009 11:00am EST
* Q4 results top estimates
* Sees modest FY09 hosting services growth
* Sees lower IT spending by customers
* Shares up 13 pct
Feb 4 (Reuters) - IT services company Savvis Inc (SVVS.O) posted a surprise fourth-quarter profit on continued demand for its web hosting services, sending its shares up 13 percent.
The company, however, warned of a longer sales cycle, lower IT spending and modest growth in its web hosting business in 2009.
Savvis posted a fourth-quarter profit of $3 million, or 6 cents a share, compared with a loss of $2.5 million, or 5 cents a share, in the year-ago quarter.
Revenue rose 12 percent to $222.4 million.
Analysts were expecting a loss of 5 cents a share, before special items, on revenue of $220.4 million, according to Reuters Estimates.
Total hosting revenue, which comprises the bulk of total revenue, rose 24 percent in quarter. Network services revenue fell 6 percent. Despite the turmoil in the financial industry, revenue from the sector grew 21 percent, the company said.
For 2009, Savvis expects adjusted earnings before interest, taxes, amortization and depreciation of $185 million to $195 million and total cash capital expenditures of $110 million to $140 million.
Savvis also said it expects a potential loss of about $27 million in the first half of 2009 related to the acquisition of American Stock Exchange by NYSE Euronext (NYX.N).
The company's shares, which touched a high of $7.24 earlier in the session, were trading up 68 cents at $7.08 Wednesday morning on Nasdaq.
Savvis Announces Addition of Credit Suisse AES Crossfinder(R)...
ST. LOUIS, Jul 29, 2009 (BUSINESS WIRE) -- Savvis, Inc. (SVVS, Trade ), a global leader in outsourced internet infrastructure services for the enterprise, today announced that Credit Suisse AES Crossfinder(R) is being hosted in the company's NJ2 data center in Weehawken, NJ. AES Crossfinder(R) will leverage Savvis' hosting and storage services, including its low latency Proximity hosting solution, along with low latency exchange connectivity via Savvis' private, managed global financial network.
Dark pools, such as AES Crossfinder(R) enhance trading speed, capacity and reliability for their customers. For the month of May, AES Crossfinder(R) was the largest U.S.-based dark pool in terms of volume.**
"We're very pleased to continue to expand our financial services leadership with the addition of Credit Suisse AES Crossfinder(R)," said Varghese Thomas, Vice President of Financial Services for Savvis. "The addition of a high-volume customer like AES Crossfinder(R) further demonstrates the benefits Savvis has seen as a result of its investment in the financial IT infrastructures that deliver a wide variety of low latency connectivity to the world's leading exchanges."
"Credit Suisse recognizes the importance of the IT infrastructure underlying key services such as AES Crossfinder(R)," said Dmitri Galinov, Director and AES Head of Liquidity Strategy, Credit Suisse. "We are confident that Savvis will deploy a cost-effective infrastructure that will provide us with the low latency solutions that our customers are demanding, allowing us to focus on core competencies and differentiate our offering in the market place."
According to Rosenblatt Securities, a leader in dark pool and global exchange analysis, dark pools have grown dramatically over the past two years. As a group they executed 8.57 percent of all U.S. equity volume in May, up from approximately 5.00 percent at the beginning of 2008.
Each day, Savvis handles approximately one-third of all dark pool volume in the U.S. equity market out of its New York area data centers. The company currently operates 28 data centers globally, with more than 1.4 million square feet of high-quality raised floor space designed to support enterprise IT operations. In addition, Savvis was recently positioned as a leader in the Gartner Magic Quadrant for Web Hosting and Cloud Infrastructure (on Demand), 2009 www.savvis.net/magicquadrantleader .
** Source: Rosenblatt Securities Inc. Monthly Dark Liquidity Tracker published June 29, 2009
About Savvis
Savvis, Inc. (SVVS, Trade ) is a global leader in outsourced internet infrastructure services for the enterprise. More than 4,000 customers, including 40% 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 about Savvis, visit www.savvis.net
Savvis Forward-Looking Statements
This document may contain 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 affect actual results are set forth as risk factors in Savvis' SEC reports and filings, including its annual report on Form 10-K and all subsequent filings as well as the risk that potential product cost and performance benefits may not be realized for any particular customer. Savvis assumes no obligation to update or supplement forward-looking statements.
SOURCE: Savvis, Inc.
Savvis, Inc.
Investors:
Peggy Reilly Tharp, 314-628-7491
[email protected] or
Media:
Carter Cromley, 703-667-6110
[email protected]
Savvis Announces Key Data Center Expansion Solidifying...
NEW YORK, Jul 29, 2009 (BUSINESS WIRE) -- Responding to growing customer demand for proximity hosting and internet infrastructure services, along with low latency connectivity to major financial exchanges, Savvis, Inc. (SVVS) today announced plans for a significant expansion to its flagship financial services hosting facility, Savvis NJ2, in Weehawken, N.J. The expanded facility, Savvis NJ2X, combined with Savvis NJ2, creates a powerful financial data center complex that extends Savvis' footprint in the highest demand market for its services, the New York-New Jersey financial hub.
Savvis has completed a transaction to lease space adjacent to Savvis NJ2 that will directly connect via fiber and yield approximately 105,000 square feet of raised floor for the deployment of high-performance hosting and low latency financial exchange connectivity for the financial services industry.
The expansion enables customers to expand their current offerings and for Savvis to attract new customers. Along with Proximity Hosting solutions, the expanded facility will offer customers the opportunity to utilize other Savvis services designed specifically for the financial community, including web solutions, software-as-a-service (SaaS) and cloud computing.
"The demand in the marketplace for financial IT infrastructure continues to grow as companies outsource to trusted providers," said Phil Koen, Chief Executive Officer of Savvis. "Today's news creates a strong financial data center complex with two of our state-of-the-art facilities making Savvis the destination of choice for financial services companies."
Initial plans call for:
-- Approximately 35,000 square feet of raised floor that is expected to be completed by the second quarter of 2010
-- Expansion potential for an additional 70,000 square feet of raised floor
-- A direct connection between buildings, which will allow customers to host trading applications to several liquidity centers via Savvis Proximity Hosting solutions
-- Four floors, with the second floor build-out occurring in 2009. An expected limited capital investment of $10 million in 2009, within the range of current company guidance for the full year, and $12 million in 2010
The new data center complex is in response to the continued market demand for hosting services. Gartner estimates the current market for hosting services will grow from $46.4 billion in 2009 to reach $150.1 billion in 2013 (Gartner's Forecast: Sizing the Cloud; Understanding the Opportunities in Cloud Services, published March 18, 2009.)
Savvis currently operates 28 data centers globally encompassing more than 1.4 million square feet of raised floor space designed to support enterprise IT operations. In addition, Savvis was recently positioned as a leader in the Gartner Magic Quadrant for Web Hosting and Cloud Infrastructure (on Demand), 2009, and can be accessed at www.savvis.net/magicquadrantleader
About Savvis
Savvis, Inc. (SVVS, Trade ) is a global leader in outsourced internet infrastructure services for the enterprise. More than 4,000 customers, including 40% 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 visit www.savvis.net
Forward-Looking Statements
This document may contain 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 affect actual results are set forth as risk factors in Savvis' SEC reports and filings, including its annual report on Form 10-K and all subsequent filings as well as the risk that potential product cost and performance benefits may not be realized for any particular customer. Savvis assumes no obligation to update or supplement forward-looking statements.
SOURCE: Savvis, Inc.
Savvis, Inc.
Carter Cromley, 703-667-6110
[email protected] or
OgilvyPR Worldwide
David Friedman, 303-634-2674
[email protected]
Savvis Reports Second Quarter 2009 Results...
ST. LOUIS, Jul 29, 2009 (BUSINESS WIRE) -- --Adjusted EBITDA* of $55.1 Million, up 23% Year-Over-Year
--Adjusted Free Cash Flow* of $15.3 Million
Savvis, Inc. (SVVS), a global leader in outsourced internet infrastructure services for enterprises, today reported its second quarter 2009 financial results, with revenue of $219.9 million, compared to $212.9 million in the second quarter of 2008. Second quarter 2009 revenue included $6.5 million of non-recurring early termination fees (ETF) related to the departure of the American Stock Exchange (AMEX), following its acquisition by NYSE Euronext. Excluding this amount, revenue was $213.4 million, up slightly on a year-over-year basis.
Income from operations for the second quarter of 2009 was $9.5 million, compared to $0.9 million in the second quarter of 2008. The company also reported a net loss of ($6.2) million, or ($0.12) per share, in the second quarter of 2009, which is an improvement compared to a second quarter 2008 loss of ($10.6) million, or ($0.20) per share.
Adjusted EBITDA for the second quarter of 2009 was $55.1 million, compared to $44.7 million of adjusted EBITDA in the second quarter of 2008. Excluding the AMEX non-recurring ETF, adjusted EBITDA was $48.6 million and up 9% on a year-over-year basis. In addition, Savvis reported positive adjusted free cash flow of $15.3 million for the second quarter.
"I'm pleased with our progress to date, especially in light of the overall macroeconomic conditions. As expected, our results for the second quarter were positive," said Phil Koen, chief executive officer of Savvis. "I'd like to specifically call out our continued positive adjusted free cash flow. This metric, along with return on capital employed*, really defines the kind of success we have seen with our focus on managed hosting. We will continue to make the best use of our capital, as we position the company for long-term growth through our managed hosting strategy."
Second Quarter Overview
Total Savvis revenue for the second quarter was $219.9 million. Both including and excluding the AMEX non-recurring ETF, revenue was up, when compared to revenue of $212.9 million in the second quarter of 2008, and down, when compared to first quarter 2009 revenue of $221.5 million. The quarterly decline reflected slower growth in Managed Hosting and churn in Colocation related to the departure of an internet content customer in one of the company's data centers.
Income from operations of $9.5 million showed an improvement from the $0.9 million recorded in the second quarter of 2008. For the first quarter of 2009, the company reported income from operations of $15.6 million.
A consolidated net loss of ($6.2) million was recorded in the second quarter of 2009, compared to a loss of ($10.6) million in the second quarter of 2008 and net income of $0.6 million in the first quarter of 2009. Savvis recorded a loss per share of ($0.12) in the second quarter of 2009, compared to a loss per share of ($0.20) in the second quarter of 2008 and earnings per share of $0.01 in the first quarter of 2009.
For the second quarter, adjusted EBITDA was $55.1 million. Excluding the $6.5 million AMEX non-recurring ETF, adjusted EBITDA improved 9% from adjusted EBITDA of $44.7 million in the second quarter of 2008 and declined on a quarter-over-quarter basis. Excluding the second quarter AMEX non-recurring ETF, adjusted EBITDA margin for the quarter was 23%. This reflects a year-over-year improvement of approximately 180 basis points and a quarter-over-quarter decline of approximately 380 basis points.
Overall Hosting revenue was $152.2 million in the second quarter, and on a year-over-year basis, Hosting was up 9%. The year-over-year improvement in Hosting revenue reflects increased enterprise interest in outsourced hosting offerings, due to the more challenging economic conditions. However, the overall sales cycle remains elongated, compared to historical trends.
For the quarter, Managed Hosting contributed $67.3 million to overall Hosting revenue, or 44%. Year-over-year, Managed Hosting revenue grew 4%, while on a quarter-over-quarter basis, revenue was down slightly.
Colocation contributed $84.9 million to overall Hosting revenue in the second quarter, or 56%. Year-over-year, Colocation grew 14%. On a quarter-over-quarter basis, Colocation grew slightly, despite some increased churn during the quarter related to the departure of an internet content customer.
In the second quarter, Network Services revenue was 31% of overall revenue, or $67.7 million. This represented an (8%) year-over-year decline and a (2%) quarter-over-quarter decline. Savvis continued to focus on network customers within its service profile.
Highlights
For the second quarter of 2009, the Financial Vertical represented 27% of total revenue, or $60.0 million. Financial Vertical revenue in the quarter was up 10%, compared to the second quarter of 2008, and 5%, compared to the first quarter of 2009. The funnel for new Financial Vertical business remains strong, and today Savvis announced that it has added Credit Suisse Crossfinder to its roster of customers.
During the quarter, Savvis announced a three-year extension of its master services agreement with Thomson Reuters, its largest customer with 7% of revenue. In addition to other managed hosting and IT infrastructure services, Savvis will continue to manage the IT infrastructure solutions required for the collection of exchange data for Thomson Reuters market data services worldwide.
Savvis also received several significant certifications during the second quarter. The company achieved Cisco Powered designation for Managed TelePresence(TM) Network Connection. In addition, Savvis joined the Microsoft Software + Services Incubation Center Program as a Gold Certified Microsoft partner, based on its abilities as a global hosting and IT infrastructure services provider in delivering Software-as-a-Service (SaaS) enablement services to independent software vendors (ISVs) and enterprise customers.
In addition to other SaaS wins, two significant new customers joined Savvis during the quarter. Savvis is providing MedeAnalytics with a managed IT infrastructure services solution, which includes managed compute, storage, network and security. Savvis also announced that it is providing global IT infrastructure solutions to Workday, Inc., the leader in enterprise-class, SaaS-based human resource and financial solutions. Savvis' SaaS infrastructure solutions are focused on providing a secure, scalable, global and function-rich cloud hosting platform that enables fast, economical and reliable deployment of SaaS applications. SaaS continues to be a strong focus for Savvis, and revenue in this area grew 3%, quarter-over-quarter.
Finally, Savvis was positioned in the Leaders Quadrant in the Web Hosting and Hosted Cloud System Infrastructure Services Magic Quadrant. The Gartner Magic Quadrant is widely recognized as one of the most influential reports for enterprises seeking to evaluate hosting vendors. Its evaluation is based on completeness of vision, including market understanding, product strategy and innovation, and assesses ability to execute, which includes operations and overall viability, among other criteria.
Cash Flow and Balance Sheet
Net cash provided by operating activities was $38.4 million in the second quarter of 2009, compared to $21.4 million in the second quarter of 2008. Cash capital expenditures for the quarter totaled $27.2 million.
As of June 30, 2009, the long-term debt and capital leases for Savvis (net of current portion) totaled $562.5 million. The company's cash position at June 30, 2009, was $154.9 million, compared to $145.9 million at March 31, 2009.
Financial Outlook
"Although we are seeing an improving overall environment, we still expect our third quarter revenue to be down sequentially," said Greg Freiberg, chief financial officer for Savvis. "However, given our sales funnel and the quality of engagements to date, we are targeting a return to top- and bottom-line growth during the fourth quarter."
Reflecting its first half results, Savvis now expects the following for full year 2009:
-- Adjusted EBITDA of $195 to $210 million, an increase over previous guidance of $190 to $200 million
-- Total cash capital expenditures of $110 to $140 million, including $10 million to be expended in 2009 for the expansion of the financial data center complex in metro New York
-- Cash interest expense (net) of approximately $40 to $45 million
-- Adjusted free cash flow of $25 to $45 million, an increase over previous guidance of $20 to $35 million
Investor Conference Call
Savvis will webcast an investor conference call today, July 29, 2009, at 10:00 a.m. ET. Both the webcast and supporting presentation will be available at savvis.net on the Investor Relations page. A live conference call will also be available by telephone at (866) 837-9780 for financial analysts in North America or (703) 639-1418 for international analysts. A replay will be available on the Web site for six months. Investors may also access the replay by telephone through Wednesday, August 12, by dialing (888) 266-2081 in North America or (703) 925-2533 internationally and using the access code 1376623.
About Savvis
Savvis, Inc. (SVVS, Trade ) is a global leader in outsourced internet infrastructure services for enterprises. More than 4,000 customers, including 40 percent 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 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, 2008, 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 our operating environment; and changes in regulatory environments. The forward-looking statements contained in this document speak only as of the date of publication, July 29, 2009. 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 financial results. "Adjusted EBITDA" represents income from operations before depreciation, amortization and accretion, gains and losses on sales of assets, 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. "Adjusted free cash flow" represents adjusted EBITDA less cash capital expenditures and less cash interest, net. We have included information concerning adjusted 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. "Return on capital employed" represents operating cash flow divided by capital employed (short-term and long-term debt plus equity). We have included information concerning return on capital employed because we believe that in our industry such information is a relevant measurement of a company's operating financial performance and its efficient use of capital. The calculations of adjusted EBITDA, adjusted free cash flow and return on capital employed are not specified by United States generally accepted accounting principles. Our calculations of adjusted EBITDA, adjusted free cash flow and return on capital employed may not be comparable to similarly-titled measures of other companies.
SOURCE: Savvis, Inc.
Savvis, Inc.
Investors:
Peggy Reilly Tharp, 314-628-7491
[email protected] or
Media:
Carter Cromley, 703-667-6110
[email protected]
•Savvis shares jump after co. narrows 2Q loss
By the time the economy picks up again- we should have a multi-year window to continue to reap the benefits of an established infrastructure.
People will eventually wake up as earnings start to improve- which they will- dramatically- in the next 12-24 months.
Patience is key. People just don't have it anymore...
Looking forward to the conference call.
52wk Range: 4.61 - 18.52
Volume: 1,177,111
Avg Vol (3m): 324,448
Technicals
Percentage Gainer
Last Price Quote is:
14.94%above 13-day MA
23.86%above 50-day MA
RS Rating: 87
Fundamentals
Earnings Surprise
Reports Earnings
Earnings Expected on Jul 29
Key Data:
Market Cap (M): $719.50
P/E Ratio: 6.00
PEG Ratio: -1.48592
Next Earnings: 10/28/2009
Last Analyst Rating: Overweight
•Coverage initiated on SAVVIS Comm by Dougherty & CompanyBriefing.com(Thu, Oct 14)
Technicals
Last Price Quote is:
5.60%above 13-day MA
11.40%above 50-day MA
RS Rating: 92
Day's Range: 20.95 - 21.81
52wk Range: 12.36 - 22.00
Volume: 373,999
Avg Vol (3m): 423,971
The 2 year chart , from breaking out of a cup and handle,
then going into a ascending triangle....Breaking out of this chart pattern also.
SVVS Savvis Delivers Year-over-Year Revenue Growth of 13% and Adj...
ST. LOUIS, Oct 27, 2010 /PRNewswire via COMTEX/ -- Savvis, Inc. (SVVS, Trade ), a global leader in cloud infrastructure and hosted IT solutions for enterprises, today reported its third quarter 2010 financial results, with revenue of $241.9 million, compared to $213.2 million in the third quarter of 2009. Adjusted EBITDA* was $59.7 million, compared to $51.2 million of adjusted EBITDA in the third quarter of 2009.
"Savvis continues to deliver on its stated goal of exiting the year at a quarterly sequential double-digit run rate for both revenue and adjusted EBITDA growth," said Jim Ousley, chairman and chief executive officer for Savvis. "The company-wide changes and improvements we have made over the past year, specifically in sales and marketing, are now flowing through to our results. Based on the strength we continue to see in bookings, installs and renewals, we expect to continue on this path throughout 2011."
Income from continuing operations for the third quarter of 2010 was $3.5 million, compared to $4.5 million in the third quarter of 2009. Savvis reported a net loss of ($26.2) million, or ($0.47) per share, in the third quarter of 2010, and this amount includes approximately $11.8 million in costs related to the company's debt refinancing, which occurred during the quarter. Savvis had a net loss of ($9.9) million, or ($0.18) per share, in the third quarter of 2009.
Third Quarter Overview
Total Savvis revenue for the third quarter was $241.9 million, up 9% compared to second quarter 2010 revenue of $221.8 million. Revenue improved in the third quarter, as the company continued to exceed its internal bookings, installs and renewals targets for 2010.
Adjusted EBITDA was $59.7 million for the third quarter of 2010, up 9% compared to $54.7 million of adjusted EBITDA in the second quarter of 2010. Growth in adjusted EBITDA continues to track the company's quarterly sequential improvements in revenue.
-----------------------------------------------------------------------------------------------------
Technicals
Last Price Quote is:
12.82%above 13-day EMA
20.93%above 50-day EMA
RS Rating: 93
Savvis Responds to G-Cloud Demand in the United Kingdom... by PR Newswire Mar 28 2011 2:01AM
LONDON, March 28, 2011 /PRNewswire via COMTEX/ -- Savvis, Inc. (SVVS) today announced its Government Wide Service (GWS) platform is now available to all government departments and third-party suppliers in the United Kingdom. The Infrastructure-as-a-Service platform provides a solution for government agencies looking toward a "G-Cloud" model of hosted, reduced-cost IT operations and services.
Utilising Savvis' pre-built, accredited GWS platform virtually eliminates upfront capital costs for new projects and also decreases deployment time. Government IT departments and suppliers benefit from immediate access to infrastructure and only pay for the consumption of their IT services on a pay-as-you-go basis, rather than the costly procurement, maintenance and management of hardware.
"Historically, progress in delivering the e-government agenda has been hampered due to high costs and complexity around government-required risk control and security management," said Neil Cresswell, managing director, EMEA, at Savvis. "Making GWS available to the market removes these hurdles; opening up the government market to a wider range of suppliers and offering government bodies the potential to cost-effectively deploy new services, paying only for the IT infrastructure that they actually consume."
Unlike other platforms in the U.K. market, GWS offers efficient and flexible procurement of data centre infrastructure that includes converged connectivity to secure government networks. The platform is accredited and secure at widely used government impact levels IL3, which is connected to the government intranet, and IL2, which is connected to the public Internet.
"GWS has the potential to be more than a platform: It could serve as a SaaS marketplace for the U.K. government," Cresswell said. "By providing a level playing field for software vendors to deliver services for government departments, GWS ushers in a new wave of smart services and lays the groundwork for government application stores, which will further drive down the cost of IT for the country."
About Savvis
Savvis, Inc. (SVVS, Trade ) 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.com .
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the timing and magnitude of future expansion. Actual results may differ materially from expectations. The forward-looking statements contained in this document speak only as of the date of publication, March 28, 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 after this date.
SOURCE Savvis, Inc.
SVVS United Kingdom Ministry of Justice Selects Savvis for... by PR Newswire Mar 28 2011 2:03AM
LONDON, March 28, 2011 /PRNewswire via COMTEX/ -- Savvis, Inc. (SVVS), a global leader in cloud infrastructure and hosted IT solutions for enterprises, will provide hosted operations and services to the United Kingdom Ministry of Justice (MoJ) as part of a five-year, 14 million pound agreement.
Savvis will provide the MoJ with access to its Government Wide Service (GWS), an Infrastructure-as-a-Service platform recently made available to all government departments and third-party suppliers in the U.K. GWS provides a solution for government agencies looking toward a "G-Cloud" model of hosted, reduced-cost IT operations and services. The platform supports the MoJ's shared services programme, which is expected to deliver annual savings of 28 million pounds per year by 2014.
The MoJ will use the secure platform for its Enterprise Resource Planning (ERP) system, which is being designed by Steria and implemented by Accenture. The ERP system will deliver transactional and professional services to more than 80,000 users as part of MoJ's Common Operating Model for human resources, finance, purchase and payroll systems. It is scheduled to be fully operational by spring 2013.
"By selecting Savvis' GWS, the Ministry of Justice gains instant access to secure infrastructure and obtains the interdepartmental connectivity required for the ERP system," said Neil Cresswell, managing director, EMEA, at Savvis. "The platform also eliminates the extensive and costly design, construction and testing process typically associated with infrastructure required for this type of project."
Utilising the pre-built, accredited GWS platform virtually eliminates upfront capital costs for new projects and also decreases deployment time. Government IT departments and suppliers benefit from immediate access to infrastructure and only pay for the consumption of their IT services, rather than the costly procurement, maintenance and management of hardware.
The MoJ joins the U.K. Home Office in using the GWS for delivering centralised applications.
About Savvis
Savvis, Inc. (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.com .
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the timing and magnitude of future expansion. Actual results may differ materially from expectations. The forward-looking statements contained in this document speak only as of the date of publication, March 28, 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 after this date.
SOURCE Savvis, Inc.
InPlay...
6:32AM SAVVIS Comm to be acquired by CenturyLink (CTL) for $40 per share in cash and stocks (SVVS) 36.02 : CenturyLink (CTL) and Savvis (SVVS) announce that their boards of directors have approved a definitive agreement under which CenturyLink will acquire all outstanding shares of Savvis common stock in a cash and stock merger valued at $40 per share, or a total of ~$2.5 billion, plus net debt of ~$0.7 billion which will be assumed or refinanced at close. Under the terms of the transaction, Savvis stockholders will receive $30 per share in cash and $10 in shares of CenturyLink common stock. The consideration represents an 11% premium over Savvis' closing stock price as of the close of trading on April 26, 2011 and a premium of 53% compared to Savvis' stock price at the beginning of the year. The acquisition of Savvis is expected to improve CenturyLink's revenue, EBITDA and free cash flow growth profile. CenturyLink expects to realize approximately $70 million in full run-rate annual operating cost and capital expenditure synergies. The transaction is expected to be accretive to CenturyLink's free cash flow per share. The companies anticipate closing the transaction in the second half of 2011. CenturyLink has received a commitment letter from Bank of America Merrill Lynch and Barclays Bank PLC for bridge debt facilities aggregating up to $2 billion to fund a portion of the acquisition and refinancing of Savvis' current debt.
CenturyLink to buy Savvis for $2.5 billion...
On Wednesday April 27, 2011, 7:37 am
(Reuters) - Rural telephone service provider CenturyLink Inc (NYSE:CTL - News) is to buy Savvis Inc (NasdaqGS:SVVS - News) for about $2.5 billion in cash and stock to beef up its data centers business as it looks to meet the growing demand for cloud-based services.
Data center operators -- an important part of the fledgling cloud computing infrastructure -- have seen a spurt of deals in the last one year, including the recent Verizon Communications' (NYSE:VZ - News) buy of Terremark Worldwide.
CenturyLink will pay Savvis stockholders $30 per share in cash and $10 in shares, and will take on debt of about $700 million.
The offer is 11 percent more than Savvis' Tuesday close on Nasdaq.
CenturyLink said it would merge its hosting operations with Savvis' managed hosting and cloud businesses and the segment will be headed by Savvis CEO James Ousley.
The combined company will operate 48 data centers in North America, Europe and Asia.
CenturyLink expects to save about $70 million in full run-rate annual operating cost and capital expenditure, it said in a statement.
CenturyLink, which expects the deal to add to its free cash flow per share, said the acquisition would help improve its revenue, EBITDA and free cash flow growth profile.
CenturyLink had Barclays Capital and BofA Merrill Lynch as financial advisers and Wachtell, Lipton, Rosen & Katz and Jones, Walker, Waechter, Poitevent, Carrere & Denegre as legal advisers.
Shares of Savvis closed at $36.02 on Tuesday on Nasdaq, while those of CenturyLink closed at $40.32 on Tuesday on the New York Stock Exchange.