UPDATE 1-Savvis posts surprise Q1 profit, shares jump
* Q1 profit $0.01/shr vs est loss $0.10/shr
* Q1 rev beats estimates
* Sees adj EBITDA of $190-$200 mln
* Shares rise 33 percent
April 29 (Reuters) - IT services company Savvis Inc SVVS.O, posted a surprise quarterly profit helped by an 18 percent rise in revenue from its data centre services, sending shares up as much as 33 percent.
First-quarter net income was $0.6 million, or 1 cent per share, compared with a loss of $7.3 million, or 14 cents a share, a year earlier. Revenue rose 9 percent to $221.5 million.
Analysts on average expected a loss of 10 cents a share, excluding exceptional items, on revenue of $219.1 million for the quarter, according to Reuters Estimates.
Savvis posted revenue of $152.3 million from its hosting services, boosted by a 24 percent rise in its colocation segment.
Income from operations rose to $15.6 million from a loss of $0.4 million, a year earlier.
The company said it now sees adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $190 million to $200 million for 2009, up from prior outlook of $185 million to $195 million.
Shares of the company were trading up $2.96, or 33 percent, at $11.94 Wednesday morning on Nasdaq. (Reporting by Shrutika Verma in Bangalore; Editing by Ratul Ray Chaudhuri)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints


Follow Reuters