Web Hosting Solutions Firm, NaviSite, Selected by European Gaming Operator
Posted by Webhost - 31/03/08 at 10:03 pmApplication solutions, hosting and content delivery services firm, NaviSite, has been chosen by an online European gaming operator, to provide colocation services representing more than $10 million dollars of total contract value over a 10-year period.
The announcement follows NaviSite’s recent news of its planned U.K. expansion in a new state-of-the-art data center located near London in Woking. The new data center, which brings the Company’s data center total to 18, will be the third such facility in London built to best-in-class data center standards as well as environmental standards for energy efficiency.
NaviSite has the right to lease up to 70,000-square-foot of usable data center space as part of its expansion which is being fueled by significant growth and demand for NaviSite’s services from the U.K.-based market.
Sean McAvan, Managing Director, NaviSite, U.K. noted, ”We’re thrilled that this customer has chosen NaviSite and will become the first to utilize our newest European data center. A major figure in European online gaming, this customer will use NaviSite’s new data center to house its network systems, web traffic and infrastructure services.”
Arthur Becker, Chief Executive Officer, NaviSite, Inc. added, ”The demand for premium data center and scalable network capacity in the European market continues to outdistance the available supply. A significant catalyst in our expansion plan is the strong demand NaviSite has experienced in the U.K. market from both new and existing customers. This is the second large transaction that we have won in the U.K. in the last three quarters. The pipeline in the U.K. and the U.S. continues to be robust, and we anticipate additional transactions for this data center in the coming quarters.”
The newest data center capacity for NaviSite, structured as a lease option agreement with London-based Sentrum Limited, delivers high density power and cooling of up to 2000 watts per square meter, supported by UPS and Generator backup. In addition to meeting SAS70 Type II audited and energy standards, the data center will provide managed services, including utility computing platforms, secure back-up services, on-demand storage, virtual servers and network security solutions.
Customers will be able to connect to the Internet via resilient carriers and utilize Content Delivery and Acceleration services. About NaviSite NaviSite is a leading provider of application solutions and hosting services.
NaviSite reported its financial results for its first quarter of fiscal year 2008, which ended October 31, 2007, with revenue increasing 27% to $36.1 million, compared to $28.5 million for the first quarter of fiscal year 2007 and compared to $34.7 million in the fourth quarter of fiscal year 2007. Income from operations decreased to $0.3 million in the first quarter of fiscal year 2008, compared to $0.7 million in the first quarter of fiscal year 2007, and $1.0 million for the fourth quarter of fiscal year 2007, mainly as the result of increased amortization of intangible assets and non-cash stock compensation related to acquisitions consummated in the first quarter of fiscal year 2008. Excluding these non-cash charges, income from operations was $1.3 million for the first quarter of fiscal year 2008.
The Company reported a loss from continuing operations of $4.1 million, including a loss on debt extinguishment of $1.7 million. Excluding the loss on debt extinguishment, the loss from continuing operations was $2.4 million. On a per share basis, the Company reported a net loss available to common stockholders of $(0.14) per share, including the loss on debt extinguishment. Excluding the loss on debt extinguishment and discontinued operations, net of taxes, net loss available to common stockholders was $(0.08) per share. NaviSite ended the quarter with a cash balance of $5.5 million.
Business Highlights Include: Achieved bookings of approximately $673,000 of incremental monthly recurring revenue (MRR) in the first quarter of fiscal year 2008 representing an increase of 18% from the first quarter of fiscal year 2007.
* Executed $19.8 million of total contract value (TCV) of application management and managed hosting services and $3.9 million in professional services. The average term of application management and managed hosting services contracts was 28 months, unchanged from the same period last year.
* Signed 70 new customers.
* Reduced customer churn, defined as the loss of a customer or a reduction in a customer’s monthly revenue run rate, excluding our major accounts, to 1.0% per month for the first quarter of fiscal year 2008 from 2.5% in the fourth quarter of fiscal year 2007, and down from 1.8% per month for the first quarter of fiscal year 2007.
* Completed the acquisitions of Alabanza and Jupiter Hosting in August and netASPx in September. These acquisitions complement our existing business and represent significant opportunities to up-sell and cross-sell NaviSite’s entire suite of managed services across their respective customer bases.
* Attracted more than 1.0 million monthly visitors to the America’s Job Exchange (AJE) career management portal displaying more than 700,000 jobs and career relevant advertisements. AJE introduced enhancements and new functionality to the web site for job seekers and OFCCP compliance for employers.
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 1,400 customers in 18 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.
