(WEB HOST INDUSTRY REVIEW) — Internet infrastructure services provider Savvis (www.savvis.net) reported on Thursday its third quarter 2009 financial results, which saw a decline from Q3 2008, dropping from $218.4 million to $213.2 million.
Adjusted EBITDA for Q3 2009 was $51.2 million, compared to $47.7 million of adjusted EBITDA in Q3 2008.
For the third quarter, positive adjusted free cash flow was $15.4 million, compared to negative adjusted free cash flow of $26.2 million in Q3 2008.
Income from operations for Q3 2009 was $4.5 million, compared to $11.1 million in Q3 2008.
The company reported a net loss of $9.9 million, or $0.18 per share, in Q3 2009, compared to a third quarter 2008 net loss of $3.8 million, or $0.07 per share.
Meanwhile, Digital Realty Trust reported on Thursday a 4.2 percent increase in funds from operations on a diluted basis from the previous quarter, reaching $74.7 million in the third quarter of 2009.
“Performance in the third quarter was as expected, and we look forward to continuing the transformation of our business as we drive our long-term growth initiatives,” says Phil Koen, CEO of Savvis. “We believe our Proximity Hosting strength – which is being supported by our NJ2X financial data center complex expansion – the continued growth of our Cloud and Software-as-a-Service offerings, and our collaboration with Thomson Reuters will drive our revenue growth over the long term, while making efficient use of our capital resources.”
The recession continues to affect all industry sectors. According to a recent MidPhase-led study, nearly 60 percent of small and medium-sized businesses said they have been affected by the recession, with many of them seeing a decline in revenue.
The hosting industry has remained fairly resilient for the most part, with many hosting providers continuing to see steady revenue, and in some cases, growth.
