Tuesday, Savvis Inc. (SVVS), a provider of IT infrastructure services, reported a loss for the second quarter compared to a profit last year. The recent quarter was hurt by higher operating expense year over year, absent a gain on asset sales incurred in the year-ago quarter. The company also reaffirmed its guidance for the full-year 2008.
Net loss for the second quarter was $7.4 million or $0.14 per share, compared to net income of $133.3 million or $2.36 per share in the same quarter last year. Analysts polled by First Call/Thomson Financial expected a loss of $0.11 per share for the quarter
The last-year quarter included a gain of $180.8 million on the sale of non-strategic assets and a charge of $45.1 million related to retirement of subordinated notes.
Total revenue increased 6% to $212.9 million from $200.6 million in the previous year quarter. On a pro forma basis, excluding the impact of the sale of data-center assets to Microsoft in June 2007 and the sale of CDN assets in January 2007 and a concluded contract, revenue increased 13% from $187.9 million in last year. Analysts anticipated revenue of $208.4 million for the quarter.
Segment-wise, Hosting revenue grew 17% to $139.5 million, reflecting a 27% growth in managed hosting revenue and 9% growth in colocation revenue. Network services revenue declined 4% to $73.4 million.
Operating expenses for the quarter was $212.1 million, up from $8 million last year, as last year results included a gain on assets sale of $180.8 million.
For the six-month period, net loss was $11.6 million or $0.22 per share, compared to net income of $247.8 million or $4.48 per share last year. Revenues increased to $416.2 million from $405.8 million a year ago.
For the full-year 2008, Savvis reaffirmed its pro forma revenue outlook of $840 million to $870 million. Street currently expects revenue of $850.13 million for the year. Capital expenditures are expected between $280 million and $300 million.
Savvis closed Tuesday's regular trading at $13.64, up $0.52 or 3.96%. In the after-hours trading, the company's shares are trading at $13.12, down $0.52 or 3.81%.
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