Savvis Reports Year-over-Year Fourth Quarter 2010 Revenue Growth of 15% and Adjusted EBITDA Growth of 24%

    <<
    Managed Services revenue growth of 32% YoY, includes nearly 100% YoY
growth
    in Cloud; Colocation revenue growth of 11% YoY




    >>

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

    <<

    (Logo:  http://photos.prnewswire.com/prnh/20090803/PH55929LOGO )

    >>

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

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

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

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

    <<


    >>

Fourth Quarter Financial Results

    <<
    US$ in millions                        Three months ended
                                           12/31/10 9/30/10   12/31/09
    Hosting                                  $185.7  $176.7     $154.7
    Network                                   $67.0   $65.2      $65.1
      Total revenue                          $252.7  $241.9     $219.8
                                             ------  ------     ------
    >>

    <<
    Cost of revenue(1)                       $129.6  $131.6     $120.4
    SG&A expenses(1) (2)                      $61.7   $56.5      $50.5
    Non-cash, equity-based compensation(1)     $5.2    $5.4       $6.0
    Income from continuing operations         $14.0    $3.5      $10.4
    Net income (loss) from continuing
     operations                               ($3.1) ($26.2)     ($5.4)
    Income (loss) from discontinued
     operations, net of income tax(3)          $0.2   ($0.0)        --
    Net income (loss)                         ($2.9) ($26.2)     ($5.4)
    >>

    <<
    Adjusted EBITDA                           $67.8   $59.7      $54.9
    Adjusted EBITDA margin                       27%     25%        25%


    >>

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

    <<

    Fourth Quarter Overview
    >>

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

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

Hosting

    <<
                             Percent of
    US$ in millions            Revenue           Three months ended
                                          12/31/10      9/30/10    12/31/09
    Managed Services                  48%    $89.3        $81.5       $67.8
    Percentage change                                        10%         32%
    Colocation                        52%    $96.4        $95.2       $86.9
    Percentage change                                         1%         11%
       Total Hosting revenue                $185.7       $176.7      $154.7
       Percentage change                                      5%         20%


    >>

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

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

Network

    <<
                             Percent of
    US$ in millions            Revenue           Three months ended
                                         12/31/10      9/30/10      12/31/09
    Core(1)                          57%    $38.4        $36.4         $31.4
    Percentage change                                        6%           22%
    Sustaining(2)                    43%    $28.6        $28.8         $33.7
    Percentage change                                      (1%)         (15%)
       Total Network revenue                $67.0        $65.2         $65.1
       Percentage change                                     3%            3%


    >>

(1) Core network includes revenue from Thomson Reuters and from other financial vertical and data center clients, who also purchase bundled network and hosting services.

(2) Sustaining network includes revenue from services that are either in slower growth or declining markets or are not directly tied to the future growth of the company's network and hosting businesses.

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

    <<

    Other Highlights
    >>

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

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

    <<

    Cash Flow and Balance Sheet
    >>

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

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

Full Year Financial Results

    <<
    US$ in millions                          12 months ended
                                           12/31/10 12/31/09 % change
    Colocation                               $358.4   $341.3          5%
    Managed services                         $315.0   $266.0         18%
       Hosting                               $673.4   $607.3         11%
    Core                                     $139.9   $112.6         24%
    Sustaining                               $119.7   $154.5       (23%)
       Network services                      $259.6   $267.1        (3%)
          Total revenue                      $933.0   $874.4          7%
                                             ------   ------        ---
    >>

    <<
    Cost of revenue(1)                       $500.7   $480.3          4%
    SG&A expenses(1)                         $226.8   $203.2         12%
    Non-cash, equity-based compensation(1)    $25.7    $29.1       (12%)
    Income from continuing operations         $24.5    $40.1       (39%)
    Net income (loss) from continuing
     operations                              ($54.0)  ($20.8)     (159%)
    Income (loss) from discontinued
     operations, net of income tax(2)          $0.1       --         --
    Net income (loss)                        ($54.0)  ($20.8)     (159%)
    >>

    <<
    Adjusted EBITDA                          $236.2   $220.0          7%
    Adjusted EBITDA margin                       25%      25%   ~15 bps


    >>

(1) Both cost of revenue and SG&A expenses exclude depreciation, amortization and accretion and include non-cash, equity-based compensation. Total non-cash, equity-based compensation attributed to cost of revenue for the 12 months ended Dec. 31, 2010, and Dec. 31, 2009, was $5.9 million and $5.5 million and to SG&A expenses was $19.8 million and $23.6 million, respectively. (2) Includes income from the application services business acquired from Fusepoint, which was classified as an asset held for sale at Sept. 30, 2010, and sold on Dec. 13, 2010. Total income attributed to net income for the 12 months ended Dec. 31, 2010, was $61,000.

    <<

    Full Year Highlights
    >>

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

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

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

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

    <<

    Financial Outlook
    >>

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

    <<

    Savvis continues to expect the following for full year 2011:
    --  Revenue of $1,030 to $1,060 million
    --  Adjusted EBITDA of $265 to $290 million
    --  Total cash capital expenditures of $220 to $240 million
    --  Cash interest expense (net) of approximately $65 million

    Investor Conference Call
    >>

Savvis will webcast an investor conference call at 10:00 a.m. ET today, Feb. 8, 2011. Both the webcast and supporting presentation will be available at savvis.net on the Investor Relations page. A live conference call will be available at (866) 261-2650 for analysts in North America or (703) 639-1221 for international analysts. A replay will be available on the website for six months. Investors may also access the replay by dialing (888) 266-2081 in North America or (703) 925-2533 internationally and using the access code 1505734 through Tuesday, Feb. 22.

    <<

    About Savvis
    >>

Savvis, Inc. (Nasdaq: SVVS) is a global leader in cloud infrastructure and hosted IT solutions for enterprises. Nearly 2,500 unique clients, including 32 of the top 100 companies in the Fortune 500, use Savvis to reduce capital expense, improve service levels and harness the latest advances in cloud computing. For more information, please visit www.savvis.net.

    <<

    Forward-Looking Statements
    >>

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from Savvis' expectations. Certain factors that could adversely affect actual results are set forth as risk factors described in Savvis' SEC reports and filings, including its annual report on Form 10-K for the year ended Dec. 31, 2009, and subsequent filings. Those risk factors include, but are not limited to, uncertainties in economic conditions, including conditions that could pressure enterprise IT spending; introduction of, demand for and market acceptance of Savvis' products and services; whether or not Savvis is able to sign additional outsourcing deals; variability in pricing for those products and services; merger and acquisition activity by Savvis customers or other customer activity that affects the level of business done with Savvis; rapid evolution of technology; changes in the operating environment; and changes or proposed changes in, or introduction of new, regulatory schemes or environments that impact Savvis and/or its customers' businesses. The forward-looking statements contained in this document speak only as of the date of publication, Feb. 8, 2011. Subsequent events and developments may cause the company's forward-looking statements to change, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

    <<

    * Non-GAAP Measures
    >>

Savvis includes information pertaining to certain non-GAAP measures in conjunction with reporting of its quarterly and year-end financial results. Adjusted EBITDA represents income from continuing operations before depreciation, amortization and accretion, and non-cash, equity-based compensation and excludes acquisition and integration costs. We have included information concerning adjusted EBITDA because we believe that in our industry such information is a relevant measurement of a company's operating financial performance and liquidity. Leveraged free cash flow represents adjusted EBITDA less cash paid acquisition and integration costs, less cash capital expenditures and less cash interest, net. We have included information concerning leveraged free cash flow because we believe that in our industry such information is a relevant measurement of a company's operating financial performance and liquidity. We do not provide forward looking guidance for certain financial data, such as income from operations, depreciation, amortization and accretion, non-cash, equity-based compensation, and interest income. As a result, we are unable to provide a reconciliation of non-GAAP measures, such as adjusted EBITDA and leveraged free cash flow, for forward looking data, including 2011 full-year guidance. The calculations of adjusted EBITDA and leveraged free cash flow are not specified by United States generally accepted accounting principles. Our calculations of adjusted EBITDA and leveraged free cash flow may not be comparable to similarly-titled measures of other companies.

    <<



    >>

    <<
                  SAVVIS, Inc. and Subsidiaries
     Unaudited Condensed Consolidated Statements of Operations
              (in thousands, except per share data)
    >>

    <<
                                             Three Months Ended
                                                December 31,
                                                ------------
                                                2010                2009
                                                ----                ----
    >>

    <<
    Revenue                                 $252,740            $219,819
    Operating Expenses:
      Cost of revenue (including non-cash,
       equity-based
        compensation of $1,262, $1,068,
         $5,919 and $5,498) (1)              129,563             120,428
      Sales, general and administrative
       expenses (including
        non-cash, equity-based compensation
         of $3,983, $4,882, $19,759 and
         $23,604) (1)                         61,746              50,454
      Depreciation, amortization and
       accretion                              47,390              38,519
                                              ------              ------
    Total Operating Expenses                 238,699             209,401
    >>

    <<
    Income from Continuing Operations         14,041              10,418
      Loss on debt extinguishment
      Other income and expense                17,835              14,916
    >>

    <<
    Loss from Continuing Operations
     before
      Income Taxes                            (3,794)             (4,498)
      Income tax (benefit) expense              (688)                861
                                                ----
    Loss from Continuing Operations, net
      of Income Taxes                         (3,106)             (5,359)
                                              ------              ------
      Income from discontinued operations,
       net
        of income taxes                          160                   -
    >>

    <<
    Net Loss                                 $(2,946)            $(5,359)
                                             =======             =======
    >>

    <<
    Loss per Share from Continuing
     Operations
      Basic earnings per share                $(0.06)             $(0.10)
                                              ======              ======
      Diluted earnings per share              $(0.06)             $(0.10)
                                              ======              ======
    >>

    <<
    Weighted-Average Common Shares
     Outstanding
      Basic                                   56,285              54,036
    >>

    <<
      Diluted                                 56,285              54,036



    >>

    <<
                                                 Year Ended
                                                December 31,
                                                ------------
                                                2010             2009
                                                ----             ----
    >>

    <<
    Revenue                                 $932,984         $874,414
    Operating Expenses:
      Cost of revenue (including non-cash,
       equity-based
        compensation of $1,262, $1,068,
         $5,919 and $5,498) (1)              500,749          480,335
      Sales, general and administrative
       expenses (including
        non-cash, equity-based compensation
         of $3,983, $4,882, $19,759 and
         $23,604) (1)                        226,842          203,158
      Depreciation, amortization and
       accretion                             180,903          150,854
                                             -------          -------
    Total Operating Expenses                 908,494          834,347
    >>

    <<
    Income from Continuing Operations         24,490           40,067
      Loss on debt extinguishment              8,735
      Other income and expense                70,770           58,184
    >>

    <<
    Loss from Continuing Operations
     before
      Income Taxes                           (55,015)         (18,117)
      Income tax (benefit) expense              (995)           2,729
                                                ----
    Loss from Continuing Operations, net
      of Income Taxes                        (54,020)         (20,846)
                                             -------          -------
      Income from discontinued operations,
       net
        of income taxes                           61                -
    >>

    <<
    Net Loss                                $(53,959)        $(20,846)
                                            ========         ========
    >>

    <<
    Loss per Share from Continuing
     Operations
      Basic earnings per share                $(0.98)          $(0.39)
                                              ======           ======
      Diluted earnings per share              $(0.98)          $(0.39)
                                              ======           ======
    >>

    <<
    Weighted-Average Common Shares
     Outstanding
      Basic                                   55,312           53,786
    >>

Diluted 55,312 53,786

    <<
    (1)  Excludes depreciation, amortization and accretion, which is reported
         separately.




    >>

    <<
              SAVVIS, Inc. and Subsidiaries
     Unaudited Condensed Consolidated Balance Sheets
                      (in thousands)
    >>

    <<
                                         December 31, December 31,
                                                       2010         2009
                                                       ----         ----
                          ASSETS
    Current Assets:
    Cash and cash equivalents                        $120,344     $160,815
    Trade accounts receivable, net                     65,058       45,754
    Prepaid expenses and other
     current assets                                    32,359       21,217
                                                       ------       ------
    Total Current Assets                              217,761      227,786
                                                    -------      -------
    Property and equipment, net                     843,801      783,852
    Goodwill                                         75,883            -
    Intangible assets, net                           19,540          404
    Other non-current assets                         26,665       12,716
                                                     ------       ------
    Total Assets                                 $1,183,650   $1,024,758
                                                 ==========   ==========
    >>

    <<
           LIABILITIES AND STOCKHOLDERS'
                       EQUITY
    >>

    <<
    Current Liabilities:
    Payables and other trade accruals               $73,445      $52,710
    Current portion of long-term debt
     and lease obligations                           17,881       17,479
    Other accrued liabilities                        84,101       68,314
    Total Current Liabilities                       175,427      138,503
                                                    -------      -------
    Long-term debt, net of current
     portion                                        530,649      376,089
    Capital and financing method lease
     obligations, net of current
     portion                                        216,508      223,897
    Other accrued liabilities                        74,937       76,452
    Total Liabilities                               997,521      814,941
                                                    -------      -------
    >>

    <<
    Stockholders' Equity:
    Common stock                                        566          545
    Additional paid-in capital                      886,593      862,834
    Accumulated deficit                            (688,388)    (634,429)
    Accumulated other comprehensive
     loss                                           (12,642)     (19,133)
                                                    -------      -------
    Total Stockholders' Equity                      186,129      209,817
                                                    -------      -------
    Total Liabilities and Stockholders'
     Equity                                      $1,183,650   $1,024,758
                                                 ==========   ==========




    >>

    <<
                   SAVVIS, Inc. and Subsidiaries
     Unaudited Condensed Consolidated Statements of Cash Flows
                           (in thousands)
    >>

    <<
                                                  Three Months Ended
                                                     December 31,
                                                     ------------
                                                     2010             2009
                                                     ----             ----
    Cash Flows from Operating Activities:
    Net income (loss)                               $(2,946)         $(5,359)
      (Income) loss from discontinued
       operations, net of income taxes                  160                -
                                                        ---              ---
                  Income (loss) from continuing
                  operations, net of income
                  taxes                         (3,106)          (5,359)
    Reconciliation of net income (loss) from
     continuing operations to net cash
     provided by operating activities:
    Depreciation, amortization and accretion       47,390           38,519
    Non-cash, equity-based compensation             5,245            5,950
    Accrued interest, net                           6,894           (1,702)
    Amortization of debt discount                     741            3,691
    Loss on debt extinguishment                         -                -
    Other, net                                          9               16
    Net changes in operating assets and
     liabilities:
      Trade accounts receivable, net                7,578              859
      Prepaid expenses and other current and
       non-current assets                          (1,923)           6,458
      Payables and other trade accruals             5,132            7,597
      Other accrued liabilities                     3,196            1,441
                                                    -----            -----
    Net cash provided by continuing
     operations                                    71,156           57,470
    Net cash provided by discontinued
     operations                                       270                -
                                                      ---              ---
    Net cash provided by operating activities      71,426           57,470
                                                   ------           ------
    >>

    <<
    Cash Flows from Investing Activities:
    Payments for capital expenditures             (43,811)         (57,132)
    Acquisition of business, net of cash
     acquired                                           -                -
    Cash received for disposition of business       1,459                -
    Net cash used in investing activities         (42,352)         (57,132)
                                                  -------          -------
    >>

    <<
    Cash Flows from Financing Activities:
    Proceeds from long-term debt                        -                -
    Principal payments on long-term debt           (1,375)          (1,650)
    Payments for debt extinguishment                    -                -
    Payments for debt issuance costs                  (65)               -
    Proceeds from stock option exercises            9,829               37
    Payments for employee taxes on equity-
     based instruments                               (229)            (130)
    Principal payments under capital lease
     obligations                                   (3,843)          (1,055)
    Other, net                                          -             (749)
                                                      ---             ----
    Net cash provided by (used in) financing
     activities                                     4,317           (3,547)
                                                    -----           ------
    Effect of exchange rate changes on
      cash and cash equivalents                    (1,095)             526
                                                   ------              ---
    >>

    <<
    Net Increase (Decrease) in Cash and Cash
     Equivalents                                   32,296           (2,683)
    Cash and Cash Equivalents, Beginning of
     Period                                        88,048          163,498
                                                   ------          -------
    Cash and Cash Equivalents, End of Period     $120,344         $160,815
                                                 ========         ========
    >>

    <<
    Supplemental Disclosures of Cash Flow
     Information:
    Cash paid for interest                        $10,500          $11,586



    >>

    <<
                                                         Year Ended
                                                        December 31,
                                                        ------------
                                                      2010             2009
                                                      ----             ----
    Cash Flows from Operating Activities:
    Net income (loss)                               $(53,959)        $(20,846)
      (Income) loss from discontinued
       operations, net of income taxes                    61                -
                                                         ---              ---
                  Income (loss) from continuing
                  operations, net of income
                  taxes                         (54,020)         (20,846)
    Reconciliation of net income (loss) from
     continuing operations to net cash
     provided by operating activities:
    Depreciation, amortization and accretion       180,903          150,854
    Non-cash, equity-based compensation             25,678           29,102
    Accrued interest, net                           10,511            4,578
    Amortization of debt discount                   10,127           14,319
    Loss on debt extinguishment                      7,535                -
    Other, net                                       4,244              943
    Net changes in operating assets and
     liabilities:
      Trade accounts receivable, net               (15,504)           6,331
      Prepaid expenses and other current and
       non-current assets                          (19,559)           5,893
      Payables and other trade accruals             17,553            2,322
      Other accrued liabilities                      9,652           (7,015)
                                                     -----           ------
    Net cash provided by continuing
     operations                                    177,120          186,481
    Net cash provided by discontinued
     operations                                        621                -
                                                       ---              ---
    Net cash provided by operating activities      177,741          186,481
                                                   -------          -------
    >>

    <<
    Cash Flows from Investing Activities:
    Payments for capital expenditures             (202,554)        (132,936)
    Acquisition of business, net of cash
     acquired                                     (112,790)               -
    Cash received for disposition of business        1,459                -
    Net cash used in investing activities         (313,885)        (132,936)
                                                  --------         --------
    >>

    <<
    Cash Flows from Financing Activities:
    Proceeds from long-term debt                   643,500            2,865
    Principal payments on long-term debt          (525,619)          (6,600)
    Payments for debt extinguishment                (1,179)               -
    Payments for debt issuance costs               (12,805)               -
    Proceeds from stock option exercises            26,367              367
    Payments for employee taxes on equity-
     based instruments                              (3,326)          (1,749)
    Principal payments under capital lease
     obligations                                   (23,141)          (7,145)
    Other, net                                      (4,607)          (2,211)
                                                    ------           ------
    Net cash provided by (used in) financing
     activities                                     99,190          (14,473)
                                                    ------          -------
    Effect of exchange rate changes on
      cash and cash equivalents                     (3,517)             459
                                                    ------              ---
    >>

    <<
    Net Increase (Decrease) in Cash and Cash
     Equivalents                                   (40,471)          39,531
    Cash and Cash Equivalents, Beginning of
     Period                                        160,815          121,284
                                                   -------          -------
    Cash and Cash Equivalents, End of Period      $120,344         $160,815
                                                  ========         ========
    >>

    <<
    Supplemental Disclosures of Cash Flow
     Information:
    Cash paid for interest                         $45,584          $37,228






    >>

    <<
                     SAVVIS, Inc. and Subsidiaries
     Unaudited Selected Condensed Consolidated Financial Information
                            (in thousands)
    >>

    <<
                                      Three Months Ended
                                      ------------------
                                                    December 31,
                                                    ------------
                                                  2010               2009
                                                  ----               ----
    Segment Revenue:
    Hosting                                     $185,697           $154,664
    Network                                       67,043             65,155
    Total Revenue                               $252,740           $219,819
                                              ========           ========
    >>

    <<
    Segment Adjusted EBITDA:
    Hosting                                    $76,127            $59,326
    Network                                     17,142             16,070
    Corporate - Other (1)                      (25,482)           (20,509)
    Total Adjusted EBITDA (2)                  $67,787            $54,887
                                               =======            =======
    >>

    <<
    Adjusted EBITDA Reconciliation:
    Income from continuing operations          $14,041            $10,418
    Depreciation, amortization and
     accretion                                  47,390             38,519
    Non-cash, equity-based
     compensation                                5,245              5,950
    Acquisition and integration costs            1,111                  -
    >>

    <<
    Adjusted EBITDA                            $67,787            $54,887
                                               =======            =======
    >>

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

    <<
    Adjusted EBITDA                            $67,787            $54,887
    Depreciation, amortization and
     accretion                                 (47,390)           (38,519)
    Non-cash, equity-based
     compensation                               (5,245)            (5,950)
    Acquisition and integration costs           (1,111)                 -
    Interest income                                 34                 35
    Interest expense                           (18,132)           (14,266)
    Other income (expense)                         263               (685)
                                                                     ----
    Income (Loss) from Continuing
     Operations before Income Taxes
                                               $(3,794)           $(4,498)
                                               =======            =======
    >>

    <<
    Leveraged Free Cash Flow
     Reconciliation:
    Adjusted EBITDA                            $67,787            $54,887
    Acquisition and integration costs           (1,111)
    Cash capital expenditures                  (43,811)           (57,132)
    Cash interest paid                         (10,500)           (11,586)
    Interest income                                 34                 35
    >>

    <<
    Leveraged Free Cash Flow (3)               $12,399           $(13,796)
                                               =======           ========



    >>

    <<
                                      Three Months Ended
                                      ------------------
                                                         September 30,
                                                                       2010
                                                                       ----
    Segment Revenue:
    Hosting                                                          $176,724
    Network                                                            65,177
    Total Revenue                                                    $241,901
                                                                     ========
    >>

    <<
    Segment Adjusted EBITDA:
    Hosting                                                         $66,892
    Network                                                          15,747
    Corporate - Other (1)                                           (22,917)
    Total Adjusted EBITDA (2)                                       $59,722
                                                                    =======
    >>

    <<
    Adjusted EBITDA Reconciliation:
    Income from continuing operations                                $3,469
    Depreciation, amortization and
     accretion                                                       50,335
    Non-cash, equity-based
     compensation                                                     5,435
    Acquisition and integration costs                                   483
    >>

    <<
    Adjusted EBITDA                                                 $59,722
                                                                    =======
    >>

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

    <<
    Adjusted EBITDA                                                 $59,722
    Depreciation, amortization and
     accretion                                                      (50,335)
    Non-cash, equity-based
     compensation                                                    (5,435)
    Acquisition and integration costs                                  (483)
    Interest income                                                      41
    Interest expense                                                (18,391)
    Other income (expense)                                          (12,230)
                                                                    -------
    Income (Loss) from Continuing
     Operations before Income Taxes
                                                                   $(27,111)
                                                                   ========
    >>

    <<
    Leveraged Free Cash Flow
     Reconciliation:
    Adjusted EBITDA                                                 $59,722
    Acquisition and integration costs                                  (483)
    Cash capital expenditures                                       (56,576)
    Cash interest paid                                              (14,298)
    Interest income                                                      41
    >>

    <<
    Leveraged Free Cash Flow (3)                                   $(11,594)
                                                                   ========



    >>

    <<
                                             Year Ended
                                            December 31,
                                            ------------
                                          2010               2009
                                          ----               ----
    Segment Revenue:
    Hosting                             $673,352           $607,296
    Network                              259,632            267,118
    Total Revenue                       $932,984           $874,414
                                        ========           ========
    >>

    <<
    Segment Adjusted EBITDA:
    Hosting                           $261,259           $239,290
    Network                             65,743             67,610
    Corporate - Other (1)              (90,824)           (86,877)
    Total Adjusted EBITDA (2)         $236,178           $220,023
                                      ========           ========
    >>

    <<
    Adjusted EBITDA Reconciliation:
    Income from continuing operations  $24,490            $40,067
    Depreciation, amortization and
     accretion                         180,903            150,854
    Non-cash, equity-based
     compensation                       25,678             29,102
    Acquisition and integration costs    5,107                  -
    >>

    <<
    Adjusted EBITDA                   $236,178           $220,023
                                      ========           ========
    >>

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

    <<
    Adjusted EBITDA                   $236,178           $220,023
    Depreciation, amortization and
     accretion                        (180,903)          (150,854)
    Non-cash, equity-based
     compensation                      (25,678)           (29,102)
    Acquisition and integration costs   (5,107)                 -
    Interest income                        126                226
    Interest expense                   (67,571)           (57,976)
    Other income (expense)             (12,060)              (434)
                                       -------               ----
    Income (Loss) from Continuing
     Operations before Income Taxes
                                      $(55,015)          $(18,117)
                                      ========           ========
    >>

    <<
    Leveraged Free Cash Flow
     Reconciliation:
    Adjusted EBITDA                   $236,178           $220,023
    Acquisition and integration costs   (5,107)
    Cash capital expenditures         (202,554)          (132,936)
    Cash interest paid                 (45,584)           (37,228)
    Interest income                        126                226
    >>

    <<
    Leveraged Free Cash Flow (3)      $(16,941)           $50,085
                                      ========            =======
    >>

    <<
    (1) Corporate -Other adjusted EBITDA includes all costs not directly
    associated with hosting services or network services. Costs not
    directly associated with hosting services or network services
    include, but are not limited to, general and administrative costs.
    (2) Adjusted EBITDA represents income from continuing operations
    before depreciation, amortization, accretion and non-cash, equity-
    based compensation and excludes acquisition and integration costs.
    We have included information concerning adjusted EBITDA because we
    believe that in our industry such information is a relevant
    measurement of a company's operating financial performance and
    liquidity.  The calculation of adjusted EBITDA is not specified by
    United States generally accepted accounting principles.  Our
    calculation of adjusted EBITDA may not be comparable to similarly
    titled measures of other companies.
    (3) Leveraged Free Cash Flow represents adjusted EBITDA less cash
    paid acquisition and integration costs, less cash capital
    expenditures and less cash interest, net. We have included
    information concerning leveraged free cash flow because we believe
    that in our industry such information is a relevant measurement of a
    company's operating financial performance and liquidity.




    >>

    <<
                           SAVVIS, Inc. and Subsidiaries
              Unaudited Condensed Consolidated Statements of Operations
                       (in thousands, except per share data)
    >>

    <<
                                       Three Months         Year
                                           Ended            Ended
                                           -----            -----
                                      December 31, 2010
                                      -----------------
    >>

    <<
    Revenue                                       $252,740        $932,984
    Operating Expenses:
      Cost of revenue (including non-
       cash, equity-based
        compensation of $1,262 and
         $5,919)                                   129,563         500,749
      Sales, general and
       administrative expenses
       (including
        non-cash, equity-based
         compensation of $3,983 and
         $19,759)                                   61,746         226,842
      Depreciation, amortization and
       accretion                                    47,390         180,903
                                                    ------         -------
    Total Operating Expenses                       238,699         908,494
    >>

    <<
    Income from Continuing
     Operations                                     14,041          24,490
      Loss on debt extinguishment                        -           8,735
      Other income and expense                      17,835          70,770
    >>

    <<
    Loss from Continuing Operations
     before
      Income Taxes                                  (3,794)        (55,015)
      Income tax expense                              (688)           (995)
                                                      ----            ----
    Loss from Continuing Operations,
     net
      of Income Taxes                               (3,106)        (54,020)
                                                    ------         -------
      Income from discontinued
       operations, net
        of income taxes                                160              61
    >>

    <<
    Net Loss                                       $(2,946)       $(53,959)
                                                   =======        ========
    >>

    <<
    Adjusted EBITDA                                $67,787        $236,178
         As a percentage of revenue                     27%             25%
    >>

    <<
    Acquisition and integration
     costs                                           1,111           5,107
                                                     -----           -----
    >>

    <<
    Adjusted EBITDA including
     acquisition and integration
     costs                                         $66,676        $231,071
         As a percentage of revenue                     26%             25%



    >>

    <<
      SAVVIS, Inc. and Subsidiaries
      Unaudited Supplemental Revenue Information
      (in thousands, except per square foot amounts)
    >>

    <<
                                                 Three Months Ended
                                                 ------------------
                                   December 31,      March 31,      June 30,
                                           2009            2010          2010
                                           ----            ----          ----
     Data Center Revenue
     Colocation                         $86,892         $82,467       $84,281
     Managed hosting                     67,772          70,284        73,898
    >>

    <<
     Data Center Metrics (1)
     Total raised floor                   1,433           1,477         1,477
     Revenue space                          878             889           885
     Billed square feet                     591             601           622
     Utilization                             67%             68%           70%
    >>

    <<
     Average Billed Square
      Feet
     Colocation                           592.3           572.1         586.6
     Managed hosting                       22.9            23.8          25.1
     Total Average Billed
      Square Feet                         615.2           595.9         611.7
                                          =====           =====         =====
    >>

    <<
     Average Monthly Data
      Center Revenue
            Per Billed Square Foot
             (2)
     Colocation                           $48.9           $48.1         $47.5
     Managed hosting                      985.4           984.5         974.4



    >>

    <<
                                         Three Months Ended
                                         ------------------
                                         September 30,      December 31,
                                                  2010               2010
                                                  ----               ----
      Data Center Revenue
      Colocation                               $95,211            $96,430
      Managed hosting                           81,513             89,267
    >>

    <<
      Data Center Metrics (1)
      Total raised floor                         1,564              1,541
      Revenue space                                957                938
      Billed square feet                           678                680
      Utilization                                   71%                73%
    >>

    <<
      Average Billed Square Feet
      Colocation                                 623.4              651.2
      Managed hosting                             26.8               28.1
      Total Average Billed Square Feet           650.3              679.2
                                                 =====              =====
    >>

    <<
      Average Monthly Data Center
       Revenue
             Per Billed Square Foot (2)
      Colocation                                 $50.9              $49.4
      Managed hosting                          1,012.7            1,059.5
    >>

    <<
    (1)  Data center metrics are calculated as of period end for each
    respective quarter.
    (2)  Average monthly data center revenue per billed square foot is
    calculated as the revenue per quarter divided by the average billed
    square feet per quarter stated on a monthly basis.

    >>

    <<
     SAVVIS Revenue by Vertical
                                              Three Months Ended
                                              ------------------
                                December 31,     March 31,       June 30,
                                         2009            2010           2010
                                         ----            ----           ----
    >>

    <<
     Financial vertical               $57,742         $55,532        $60,417
     Other                            162,077         161,055        161,339
    >>

    <<
     Total Revenue                   $219,819        $216,587       $221,756
                                     ========        ========       ========



    >>

    <<
     SAVVIS Revenue by Vertical
                                 Three Months Ended
                                 ------------------
                                September 30,       December 31,
                                          2010               2010
                                          ----               ----
    >>

    <<
     Financial vertical                $67,007            $69,698
     Other                             174,894            183,042
     Total Revenue                    $241,901           $252,740
                                      ========           ========

    >>

    <<
     Network Revenue Supplemental
      Information:                              Three Months Ended
                                                ------------------
                                  December 31,     March 31,       June 30,
                                           2009            2010           2010
                                           ----            ----           ----
    >>

    <<
     Core (1)                           $31,483         $31,670        $33,459
     Sustaining (2)                      33,672          32,166         30,118
     Total Network Revenue              $65,155         $63,836        $63,577
                                        =======         =======        =======



    >>

    <<
     Network Revenue Supplemental
      Information:                 Three Months Ended
                                   ------------------
                                  September 30,       December 31,
                                            2010               2010
                                            ----               ----
    >>

    <<
     Core (1)                            $36,339            $38,443
     Sustaining (2)                       28,838             28,600
     Total Network Revenue               $65,177            $67,043
                                         =======            =======
    >>

    <<
    (1) Core network includes revenue from Thomson Reuters and from other
    financial vertical and data center customers, who also purchase
    bundled network and hosting services.
    (2) Sustaining network includes revenue from services that are either
    in slower growth or declining markets or are not directly tied to
    the future growth of the company's network and hosting businesses.








    >>

SOURCE Savvis, Inc.

For further information: Investors: Peggy Reilly Tharp, +1-314-628-7491, peggy.tharp@savvis.net, or Media: George Csolak, +1-314-628-7266, george.csolak@savvis.net Web Site: http://www.savvis.net

Profil de l'entreprise

Savvis, Inc.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.