SVVS - Sector: Technology---Industry: Computer Services

[setravis]

• 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.

[setravis]

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

[setravis]

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.

[setravis]

End of day.......1 year chart

[setravis]

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.   
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......

[setravis]

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

[setravis]

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.......
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

[setravis]

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.

[setravis]

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.

[setravis]

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.

[setravis]

Worth putting up a chart.......
may have the coil effect to pop it on up,need the volume boost !

[setravis]

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

[setravis]

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

[setravis]

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.

[setravis]

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]