Cloud Computing Company NaviSite Reports Second Quarter Results

NaviSite had a strong second quarter for fiscal year 2011 as its total revenue for the quarter ending January 31, was $32.4 million, representing a 7 percent year-over-year increase and a sequential increase of 1 percent.

During its second quarter of fiscal year 2011, the cloud computing company completed the sale of its Dallas colocation data center resulting in cash proceeds of $12.75 million. Net income attributable to common shareholders for the second quarter was $4.8 million, or $0.13 per share, compared to a loss of $2.9 million, or $(0.08) per share – largely driven because of the sale of the Dallas colocation data center.

According to its financial report, NaviSite’s recurring hosting revenue was $31.3 million, representing a year-over-year increase of 8 percent and a sequential increase of 1 percent. For the second quarter, EBITDA was $7.4 million, excluding impairment costs, stock-based compensation, severance and other non-operational charges, and that represented a year-over-year increase of 13 percent and a sequential increase of 3 percent.

Other highlights of the second quarter include the agreement made between the cloud computing company and Time Warner Cable that states that Time Warner Cable will acquire NaviSite for $5.50 per common share in cash, or a total equity value of in broad outline $230 million.

NaviSite as well booked $0.6 million of incremental monthly revenue with an average term of 16 months in the second quarter of fiscal year 2011 compared to $0.7 million booked in the second quarter of fiscal year 2010 with an average term of 24 months. It as well booked $0.1 million of cloud expected monthly recurring revenue in the second quarter of cloud availability, an increase of 34 percent from the prior quarter and representing over 17 percent of NaviSIte’s total bookings for the quarter.