Savvis Inc. (SVVS), a provider of managed information technology services, Wednesday reported a wider net loss for the fourth quarter, hurt by lower revenue and higher operating expenses.
The company posted a net loss of $5.4 million or $0.10 per share for the fourth quarter, compared to a loss of $0.3 million or $0.01 per share in the prior year quarter.
On average, 18 analysts polled by Thomson Reuters expected the company to report a loss of $0.17 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Fourth quarter revenue decreased to $219.8 million from $222.5 million in the same quarter last year. Seventeen analysts had a consensus revenue estimate of $215.39 million for the fourth quarter.
Hosting revenue grew 2% to $154.7 million, but network revenue dropped 9% to $65.1 million in the fourth quarter.
Total operating expenses for the quarter increased to $209.4 million from $207.4 million in the prior year quarter.
Income from operations for the fourth quarter was $10.4 million, a decline from $15.0 million in the prior year quarter.
For the full year 2009, Savvis reported a net loss of $20.8 million or $0.39 per share, compared to a loss of $22.0 million or $0.41 per share in the previous year.
Annual revenue increased 2% to $874.4 million from $857.0 million in the prior year.
Analysts expected the company to report a loss of $0.46 per share on revenue of $868.83 million for the year.
Savvis is currently trading at $15.40, down 70 cents or 4.35%.
For comments and feedback: editorial@rttnews.com