NaviSite Reports Third Quarter Fiscal Year 2007 Results.EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become Growth of 43% on Record 8% Sequential Revenue Growth; Bookings Growth of 50% ANDOVER, Mass. -- NaviSite, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NAVI NAVI Nuclear Arms Verification Instrument NAVI New Analog Video Interface ), a leading provider of application solutions, hosting and content delivery services See CDN. , today reported financial results for its third quarter of fiscal year 2007, which ended April 30, 2007. Third Quarter Fiscal Year 2007 Financial Results: Revenue for the third quarter of fiscal year 2007 increased 17% to $32.7 million, compared to $27.9 million for the third quarter of fiscal year 2006. Sequentially, revenue for the third quarter of fiscal year 2007 increased 8% compared to $30.2 million of revenue in the second quarter of fiscal year 2007. Income from operations was $1.1 million in the third quarter of fiscal year 2007, as compared to a loss from operations of $1.1 million in the third quarter of fiscal year 2006 and a loss of $0.4 million in the second quarter of fiscal year 2007. NaviSite reported $6.0 million of EBITDA, excluding impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. costs, stock-based compensation and one-time charges ("EBITDA") for the third quarter of fiscal year 2007, a 43% increase compared to the $4.2 million of EBITDA reported in the third quarter of fiscal year 2006 and a 15% increase compared to the $5.2 million of EBITDA reported in the second quarter of fiscal year 2007. The Company reported a net loss of $2.4 million, or $0.08 per share, for the third quarter of fiscal year 2007, as compared with a net loss of $3.4 million, or $0.12 per share, for the third quarter of fiscal year 2006. "NaviSite continued to generate bookings momentum and strong financial results in the third quarter," said Arthur Becker, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , NaviSite. "Our record sequential revenue growth and positive EBITDA performance reflect the strength in customer demand across our service lines in both the U.S. and the U.K., and the near-record client bookings illustrate some early traction from our decision to increase the size of our sales organization." Business Highlights for the Third Quarter of Fiscal Year 2007: * Achieved strong bookings in NaviSite's application solutions, hosting and content delivery services with approximately $785,000 of new monthly recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue booked in the third quarter of fiscal year 2007. This represents an increase of 50% from the third quarter of fiscal year 2006 and almost matches the record bookings reached in the second quarter of fiscal year 2007. * Executed a total contract value in our application solutions, hosting and content delivery services business in the third quarter of fiscal year 2007 of $35.5 million, an increase of 175% from $12.9 million in the third quarter of fiscal year 2006 and a sequential increase of 20% over the $29.6 million in the second quarter of fiscal year 2007. The average term of these contracts was 43 months, representing a 16% increase in contract term lengths over the second quarter of fiscal year 2007. * Signed professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. contracts with a total value of $7.6 million in the third quarter of fiscal year 2007 compared to $7.2 million in the second quarter of fiscal year 2007, an increase of 6%, and an increase of 52% from the $5.0 million in the third quarter of fiscal year 2006. * Signed 54 new clients in the third quarter of fiscal 2007 - including CrushedPlanet.com, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ; InterMedia Outdoors InterMedia Outdoors is an outdoors magazine publishing group in the United States. They publish 17 hunting, fishing and shooting magazines, and own the The Sportsman Channel cable network, which was purchased from its founders in June 2007. , Inc.; Privo, Inc.; and Quality Technology Services Quality Technology Services Holding LLC provides Internet infrastructure and network services. Quality Technology Services include network bandwidth, application management, server management, and databases and security, media streaming, and colocation. Holding, LLC - and renewed existing client contracts or expanded business with companies such as GoldMail; NewRiver, Inc., Hamilton Grant Software Ltd., and Genesis Consultancy. * Maintained low customer churn churn: see butter. , defined as the loss of a customer or a reduction in a customer's monthly revenue run rate, excluding our major accounts, at 1.3% per month for the third quarter of fiscal year 2007 compared to 1.0% per month for the third quarter of fiscal year 2006 and 1.4% for the second quarter of fiscal year 2007. * Announced a strategic partnership in a collaboration with Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. to offer Independent Software Vendors (ISVs) and startup companies The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. the ability to easily develop and/or deploy their software applications in an on-demand environment hosted and supported by NaviSite on Sun's platform of products. * Launched AmericasJobExchange.com as a successor to America's Job Bank (AJB AJB America’s Job Bank AJB African Journal of Biotechnology AJB Amt für Jugend und Berufsberatung (German: office for youth and vocational guidance) AJB American Journal of Botany AJB Australian Journal of Botany ). America's Job Exchange will provide National Labor Exchange services to employers, job hunters and organizations without any interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. when AJB ends in July 2007. Since its recent launch, AJE has grown to over half a million job orders. In addition, NaviSite recently announced that Rathin Sinha has joined the Company to lead NaviSite's marketing efforts as Chief Marketing Officer. Sinha joins NaviSite most recently from Monster.com, where he served as General Manager of eBusiness. While at Monster, Sinha built and quickly expanded the eCommerce channel, tripling its revenue in less than four years. Sinha will lead NaviSite's overall marketing efforts, bringing particular expertise to the Company's web-based lead generation initiatives and the newly launched America's Job Exchange program. Guidance: NaviSite projects revenue for the fourth quarter of fiscal year 2007 to be between $33.5 and $34.0 million and between $125.0 and $125.5 million for the full fiscal year. EBITDA, excluding impairment costs, stock-based compensation and one-time charges, is projected to be between $6.3 and $6.8 million for the fourth quarter of fiscal year 2007 and between $22.8 and $23.3 million for the full fiscal year. Additionally, NaviSite projects revenue for fiscal year 2008 to be between $140.0 and $150.0 million. EBITDA for fiscal year 2008, excluding impairment costs, stock-based compensation and one-time charges, is projected to be between $29.0 and $34.0 million. Conference Call Scheduled for June 5, 2007: NaviSite's Chief Executive Officer, Arthur Becker, and Chief Financial Officer, Jim Pluntze will host a conference call to discuss NaviSite's third quarter fiscal year 2007 financial results at 9:00 a.m. Eastern Time on June 5, 2007. Call In Details: Date and Time: Tuesday, June 5, 2007, 9:00 a.m. Eastern Time Call In #: 866.314.5232 (International: 617.213.8052) Enter Passcode #: 86765201 Dial In Replay: 888.286.8010 (International: 617.801.6888) Enter Passcode #: 60814151 Available 30 minutes following the conclusion of the call and archived through June 5, 2008. Archived Replay: Information accessible at http://www.navisite.com/earningscalls. Available 24 hours following the conclusion of the call. Analyst Day NaviSite is holding an Analyst Day and tour of its Andover data center operations on June 21, 2007. If you are a professional investor or analyst and would like to attend or have questions about this event, please call Chris Witty Christine ("Chris") Diane Witty (born June 23 1975 in West Allis, Wisconsin) is an American speed skater and racing cyclist and participated in the Olympic Games in both sports. However, she is more successful in skating. of Lippert/Heilshorn at 212.838.3777. EBITDA: EBITDA is not a recognized measure for financial statement presentation under United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). The Company believes that the non-GAAP measure of EBITDA provides investors with a useful supplemental measure of the Company's actual and expected operating and financial performance by excluding the impact of interest, taxes, depreciation and amortization. The Company also excludes impairment costs, non-cash stock-based compensation and one-time charges from its non-GAAP measure, as such items are considered to be non-operational in nature. EBITDA does not have any standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. definition and therefore may not be comparable to similar measures presented by other reporting companies. Management uses EBITDA to assist in evaluating the Company's actual and expected operating and financial performance. These non-GAAP results should not be evaluated in isolation of, or as a substitute for, the Company's financial results prepared in accordance with U.S. GAAP. A table reconciling the Company's net loss, as reported, to EBITDA is included in the condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge in this release. The Company believes that using EBITDA as a performance measure, together with net loss, will help investors better understand the Company's underlying financial performance. About NaviSite, Inc. NaviSite is a leading provider of application solutions and technology services for companies who seek to accelerate their business IT performance. With over 1,000 customers in 14 data centers and offices in the US, UK and India, NaviSite is the partner of choice for outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. enterprise applications and related IT services to drive IT Efficiency and Effectiveness. NaviSite delivers a unique combination of application implementation, management and content delivery services to provide full lifecycle support of enterprise applications. For more information, please visit www.navisite.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which address a variety of subjects including the expected future operating and financial results, including profitability, revenue growth and EBITDA, success and performance of NaviSite's product and service offerings, and NaviSite's strategic business plans for growing its customer base and increasing sales. All statements other than statements of historical fact, including without limitation those with respect to NaviSite's goals, plans and strategies set forth herein, are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: NaviSite's success, including its ability to improve its gross profit, improve its cash flows, expand its operations and revenue, and reach and sustain profitability, depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its products and services; the possibility that financial forecasts of the Company may not be achieved, including those as to expected EBITDA and revenue, or an inability to realize expected synergies or make expected future investments in NaviSite' businesses or NaviSite may be unable to raise the necessary funds to meet its payment obligations to Silver Point Finance and other creditors; NaviSite's management may face strain on managerial and operational resources as they try to oversee the expanded operations; NaviSite may not be able to expand its operations in accordance with its business strategy; NaviSite may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; NaviSite's acquisition of companies and businesses may not produce expected cost savings, operational efficiencies or revenue; NaviSite's products, technologies, and resources may not successfully operate with the technology, resources and/or applications of third parties; NaviSite derives a significant portion of its revenue from a small number of customers and the loss of any of those customers would significantly damage NaviSite's financial condition and results of operations; and increased competition and technological changes in the markets in which NaviSite's competes. For a detailed discussion of cautionary statements that may affect NaviSite's future results of operations and financial results, please refer to NaviSite's filings with the Securities and Exchange Commission, including NaviSite's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. All logos, company and product names may be trademarks or registered trademarks of their respective owners. ### NAVISITE FINANCIAL TABLES - THIRD QUARTER FISCAL YEAR 2007 AND 2006 EBITDA Summaries [TABLE OMITTED] NAVISITE FINANCIAL TABLES - THIRD QUARTER FISCAL YEAR 2007 AND 2006 Condensed Consolidated Statements of Operations [TABLE OMITTED] NAVISITE FINANCIAL TABLES - THIRD QUARTER FISCAL YEAR 2007 AND 2006 Condensed Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. [TABLE OMITTED] NAVISITE FINANCIAL TABLES - THIRD QUARTER FISCAL YEAR 2007 AND 2006 Condensed Consolidated Statements of Cash Flows [TABLE OMITTED] |
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