Savvis' 4Q loss widens, shares slide

posted: 6 DAYS 16 HOURS AGO

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ST. LOUIS -Savvis said Wednesday it loss widened in the fourth quarter as the computer network service provider's sales and operating income sank.

Shares tumbled tumbled 71 cents, or 4.4 percent, to $15.39 in afternoon trading.

Savvis lost $5.4 million, or 10 cents a share, in the three months ended in December. That compares with a loss of $294,000, or a penny a share, in the prior-year period.

Revenue fell to $219.8 million from $222.4 million a year earlier.

Savvis had originally reported $3 million profit in the fourth quarter of 2008, but restated in line with new accounting guidance. That resulted in an increase of $3.3 million in interest expense, which offset the gains for that period.

Income from operations was $10.4 million, down from $15 million in the fourth quarter of 2008.

Management, however, touted that it recorded its best bookings in 18 months during the fourth quarter, including a $33 million, five-year deal to provide outsourcing to a global information distribution services company.

For the full year, Savvis Inc. lost $20.8 million, or 39 cents a share, compared with a loss of $22 million, or 41 cents a share, in 2008.

Revenue for the year rose to $874.4 million from $857 million.

2010-02-03 15:04:54