Savvis Narrows 4Q Net Loss On Higher Revenue

ST. LOUIS (AP) - Savvis Corp. narrowed its net loss in the fourth quarter on stronger revenue as more companies stored their data and software off-site, a setup known as cloud computing.

The information technology company, based in St. Louis, said Tuesday that its net loss and revenue were far better than analysts' expectations, sending its shares to a new 52-week high Tuesday.

Savvis reported a net loss for the quarter ended Dec. 31 of $2.9 million, or 6 cents per share, compared to a loss of $5.4 million, or 10 cents per share, a year earlier.

The company's revenue jumped 15 percent, to $252.7 million from $219.8 million, driven by a 20 percent increase in revenue from its hosting segment. Cloud computing services make up a growing portion of that segment, Savvis said.

Revenue from the company's network segment rose 3 percent over the same quarter in 2009.

The loss was 15 cents smaller than analysts expected. Analysts polled by FactSet expected a net loss of 21 cents per share on revenue of $248.7 million.

For the full year 2010, Savvis' net loss grew to $54 million, or 98 cents per share, from $20.8 million, or 39 cents per share in 2009. Revenue increased 7 percent, to $933 million in 2010 from $874.4 million in 2009.

The company affirmed its earlier guidance for the full year 2011. Savvis said in December that it expects to generate revenue of $1.03 billion to $1.06 billion.

Savvis provides information technology services such as hosting and networking for businesses and government agencies.

Shares of Savvis rose $1.10 to close Tuesday at $32.21. They traded earlier Tuesday at a 52-week high of $34.82.