Miami, Florida – (The Hosting News) – November 14, 2008 – Integrated Tier-1 Internet exchange and managed IT infrastructure solutions provider, Terremark, has reported its results for the quarter ending September 30, 2008, including $59.6 million, representing a 31% year-over-year increase.
Revenues generated during the second quarter were at the high end of previously announced guidance, with more than 91 percent of the $59.6 million in revenues recurring in nature.
Terremark Worldwide, Inc. is a leading operator of integrated Tier-1 Internet exchanges and a global provider of managed IT infrastructure solutions for government and private sectors. Terremark delivers its portfolio of services from seven locations in the U.S., Europe and Latin America and from four service aggregation and distribution locations, which aggregate network traffic and distribute network-based services in Europe and Asia to meet specific customer needs. Terremark’s flagship facility, the NAP of the Americas, is the model for the carrier-neutral Internet exchanges the company has in Santa Clara, California (NAP of the Americas/West), in Sao Paulo, Brazil (NAP do Brasil) and in Madrid, Spain (NAP de las Americas – Madrid). The carrier-neutral NAP of the Americas is a state-of-the-art facility that provides exchange point, colocation and managed services. Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, Florida USA, (305) 856-3200.
Manuel D. Medina, Chairman and CEO of Terremark remarked, ”We executed well and reached the high-end of our revenue guidance despite a tough macro-economic environment. Demand for IT infrastructure services, and particularly Terremark’s full suite of offerings, remains strong driven by the compelling value proposition we offer to today’s CIOs who are under pressure to produce more effectively and efficiently with smaller budgets.”
Jose Segrera, CFO of Terremark commented, ”With a fully funded growth strategy and diverse, blue-chip customer base, we anticipate that our company will continue to produce strong results despite the tough macro-economic environment. Given our strong revenue growth this past quarter, we feel confident that the recurring nature of our business model enhances our ability to continue our strong performance in the coming quarters.”
Mr. Medina added, ”We are excited about the long-term prospects for our business. While our results this quarter were impacted by a strategic process that is now complete, our Company remains ideally positioned to meet the needs of CIOs, as demonstrated by our healthy bookings and pipeline.”
Q209 Financial Highlights include:
- Total revenues for the quarter ended September 30, 2008 were $59.6 million, which is in-line with the high-end of previously announced guidance and representing a 31% year-over-year increase.
- EBITDA, as adjusted, for the quarter ended September 30, 2008 was $9.9 million, which represents a 27% year-over-year increase. Income from operations for the six months ended September 30, 2008 was $3.5 million. A significant impact on our results of operations and EBITDA, as adjusted, during the September 2008 quarter was related to the evaluation of strategic alternatives by the Company’s Board of Directors. This evaluation began in April 2008 upon receipt by the Company of an unsolicited expression of interest regarding a potential acquisition of all the outstanding shares of Company stock at a premium to the then current trading price. The Board of Directors formed a strategic committee to conduct a market check and to authorize and oversee management’s preliminary exploratory process to identify transaction alternatives to maximize stockholder value. No definitive transaction with any third party ensued as a result of the process in light of global economic conditions and credit market illiquidity. Therefore, the Board of Directors determined that it was in the shareholders’ best interest to continue executing the Company’s business plan.
- Cross connects billed to customers increased to 7,459 as of September 30, 2008 from 7,232 the previous quarter and 6,119 a year earlier, representing increases of 3% and 22%, respectively. This increase continues to highlight the strong demand for Terremark’s network-neutral model.
Sales and Marketing
- During the quarter ended September 30, 2008, Terremark added 80 new customers, for a total of 1,068 customers at the end of the period.
- Terremark booked $27.6 million of new annual contract value, which represents the fourteenth straight quarter of strong bookings.
- Total built-out colocation space increased to 187,671 as a result of additional space coming online in the NAP of the Capital Region and the NAP of the Americas. The Company is currently deploying customers into the new space and is seeing a robust pipeline for services in both facilities.
- Total colocation space utilization was 23.3% as of September 30, 2008 compared to 23.7% as of June 30, 2008. Utilization of built-out colocation space was 55.0% as of September 30, 2008. The utilization rates both decreased due to the activation of additional space in the NAP of the Capital Region and Terremark’s facility in Miami.
- Following the launch of the Enterprise Cloud in June, Terremark has continued to promote its innovative cloud computing platform. The Company presented at a number of the leading industry conferences and hosted a series of customer webinars, which have resulted in a number of customer contracts.
- For the third quarter of fiscal 2009, the Company expects revenues to range from $65.0 million to $67.0 million and EBITDA, as adjusted, to range from $15.0 million to $16.0 million.
- For the 2009 fiscal year, guidance remains between $255 million to $260 million of revenues and EBITDA, as adjusted, to range between $58 million and $60 million.
Additional information regarding the Company’s financial performance as of and for the quarter ended September 30, 2008 and a comparison to the quarter ended September 30, 2007 can be found on the balance sheet and statement of operations and in the Company’s Quarterly Report on Form 10-Q.
Terremark Worldwide is a leading global provider of IT infrastructure services delivered on the industry’s most robust and advanced technology platform. Leveraging data centers in the United States, Europe and Latin America with access to massive and diverse network connectivity, Terremark delivers government and enterprise customers a comprehensive suite of managed solutions including managed hosting, colocation, disaster recovery, security and cloud computing services. Terremark’s acclaimed Infinistructure utility computing architecture has redefined industry standards for scalable and flexible computing infrastructure and its DigitalOps service platform combines end-to-end systems management workflow with a comprehensive customer portal.
To learn more, please visit: www.terremark.com.