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April 29 (Reuters) - Telecommunications carrier Savvis Inc (SVVS.O: Quote, Profile, Research) posted a narrower-than-expected quarterly loss, but lowered its 2008 revenue outlook and said its network business would decline during the year, sending its shares down more than 16 percent after the bell.

"Our network business declined slightly in the first quarter, and we expect it to decline by about 6 percent in 2008 as we work to improve its performance," CEO Phil Koen said in a statement.

Network services revenue fell 8 percent to $74.1 million in the first quarter as a result of pricing pressure and lower demand for these services, Savvis said.

The company forecast 2008 revenue of about $840 million to $870 million, down from its previous view of $910 million to $925 million. Analysts were expecting $906 million.

Savvis also cut its 2008 adjusted EBITDA forecast to between $175 million and $190 million. In January, it had projected adjusted EBITDA of $200 million to $210 million for the year.

For the first quarter, the company posted a net loss of $4.2 million, or 8 cents a share, compared to a profit of $114.5 million, or $2.13 a share, a year earlier. Revenue fell about $2 million to $203.3 million.

Analysts were expecting the company to post a loss of 13 cents a share, before special items, on revenue of $207.3 million, according to Reuters Estimates.

Shares of the company were trading at $15.65 in after-hours trading. They closed at $18.68 Tuesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Himani Sarkar)