NaviSite Releases Fiscal Report
Andover, Massachusetts – (Website Hosting Directory) – March 10, 2008 – Application solutions, hosting and content delivery services firm, NaviSite, has reported its financial results for its its second quarter of fiscal year 2008, which ended January 31, 2008.
Arthur Becker, Chief Executive Officer, NaviSite noted, ”Our results in the second quarter reflect the continuation of our growth with record bookings and our strongest ever EBITDA performance. The strategy of offering both managed hosting and application services has enabled us to win new customer accounts and deals with multiple service offerings to existing customers through our up-sell and cross-sell activities.”
Revenue for the second quarter of fiscal year 2008 increased 29% to $38.9 million, compared to $30.2 million in the second quarter of fiscal year 2007, and compared to $36.1 million in the first quarter of fiscal year 2008.
Income from operations was $1.3 million in the second quarter of fiscal year 2008, compared to a loss from operations of $0.4 million in the second quarter of fiscal year 2007, and income from operations of $0.3 million for the first quarter of fiscal year 2008.
EBITDA, excluding impairment, stock-based compensation, costs related to the discontinued operations of America’s Job Exchange and non-operational charges EBITDA, for the second quarter of fiscal year 2008 increased 65% to $8.6 million compared to $5.2 million reported in the second quarter of fiscal year 2007 and $6.9 million reported in the first quarter of fiscal year 2008.
For the second quarter of fiscal year 2008, the Company reported a loss from continuing operations of $1.9 million and a net loss attributable to common shareholders of $2.9 million as compared to a net loss of $3.8 million in the second quarter of fiscal year 2007. On a per share basis, the Company reported a net loss attributable to common stockholders of $(0.08) for the second quarter of fiscal year 2008 compared to a per share net loss of $(0.13) for the second quarter of fiscal year 2007. NaviSite ended the quarter with a cash balance of $4.9 million.
Business Highlights Include:
Achieved record bookings of approximately $1.1 million of incremental monthly recurring revenue (MRR) in the second quarter of fiscal year 2008 representing an increase of 36% from same period in fiscal year 2007 and 63% over the first quarter of fiscal year 2008.
- Total contract value (TCV) of bookings was a record of $37.4 million: $31.5 million of MRR and $5.9 million of non recurring contracts. The average term of the MRR contracts booked during the quarter was 28 months.
- Signed 112 new recurring revenue customers during the second quarter of the fiscal year 2008 – up from 70 new customers won during the first quarter of fiscal year 2008 and 72 new customers during the second quarter of fiscal year 2007.
- Reduced customer churn, defined as the loss of a customer or a reduction in a customer’s monthly revenue run rate, excluding major accounts, to 0.8% per month for the second quarter of fiscal year 2008 from 1.0% in the first quarter of fiscal year 2008, and down from 1.4% per month for the second quarter of fiscal year 2007.
NaviSite projects revenue for the third quarter of fiscal year 2008 to be between $41.0 and $42.0 million and projects revenue for fiscal year 2008 to be between $160.0 and $165.0 million. EBITDA, excluding impairment, stock-based compensation, costs related to the discontinued operations of America’s Job Exchange and non-operational charges, is projected to be between $9.0 and $9.5 million for the third quarter of fiscal year 2008 and between $35.0 and $38.0 million for fiscal year 2008.
NaviSite’s Internet solutions, from colocation and web hosting to managed services and application management, are designed to service mid-market organizations, with a virtual server platform specifically designed to deliver a high-performance, flexible IT environment that rapidly scales. NaviSite is a provider of application solutions, hosting and content delivery services, with over 950 customers in 14 data centers; offices in the US, UK and India. NaviSite outsources enterprise applications and related technology services to drive IT Efficiency and Effectiveness. NaviSite delivers application implementation and management, hosting and content delivery services, along with complex application and IT services for mid sized companies.
For more information about NaviSite, please visit: www.navisite.com.