Terremark Worldwide (TMRK), a leading global provider of IT infrastructure solutions, announced results for the fourth quarter of fiscal 2010 (ended March 31) with a loss per share of 2 cents matching the Zacks Consensus Estimate.
The company posted a net loss of $1.2 million for the quarter compared to a net profit of $4.1 million a year ago, impaired by higher operating costs and interest expenses which jumped by 20.6% and 59%, respectively. For fiscal 2010, net loss nearly tripled to $31.7 million or 51 cents a share, also in line with the Zacks Consensus Estimate.
Revenue & EBITDA
Consolidated revenues increased 19.7% year-over-year to $82.5 million (in line with the company’s guidance), fueled by record contract bookings. Revenues for fiscal 2010 leapt 17% year-over-year to $292.3 million. Cloud computing run rate increased 27% sequentially to $21.9 million. Adjusted EBITDA for the quarter grew 20% year-over-year to $26.5 million.
Subscribers & Bookings
Terremark added 56 new customers during the quarter, a sequential improvement, bringing its total customer base to 1,350. Total new contract bookings registered $45.5 million, the highest ever in the company’s history, boosted by strong demand from enterprise and federal customers.
Data Center Space & Utilization
Total colocation space utilization reached 29%, a decline from 29.6% reported in the previous quarter. Utilization for build-out colocation space also declined sequentially to 54.4%. Cross-connects billed to customers reached 9,154, growing 10% year over year.
Outlook
Terremark has released guidance for the first quarter of fiscal 2011 with revenues projected in the range of $77 – $79 million and an adjusted EBITDA of $18 – $20 million. The company has raised its forecasts for fiscal 2011 with revenues expected to range between $338 million and $343 million (up from $335 million and $340 million) with an adjusted EBITDA between $98 million and $101 million (up from $95 and $100 million).
Terremark remains a key player in the IT infrastructure solutions market with a vast portfolio of premium products and services, wide geographic coverage and a diversified customer base. The company continues to broaden its data center space to handle increased demand, especially from federal government customers.
Terremark began the construction of a third datacenter (50,000 square foot) in April 2010 in its NAP (network access point) of the Capital Region (NCR) facility at Culpeper, Virginia. This follows the construction of the second datacenter with the same capacity in February 2010. Moreover, Terremark recently acquired 27 acres of land adjacent to its NAP of the Capital Region for $5 million and opened its 72,000-square-foot headquarters.
The company’s industry leading product/service portfolio, expanding datacenter space coupled with a differentiated execution strategy, uniquely positions it to leverage the attractive market trends for managed hosting, colocation and cloud computing services.
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