Monday, November 3, 2008

NaviSite records annual EBITDA and revenue growth

By Mass High Tech Staff

Enterprise applications hosting and services company NaviSite Inc. today reported a 48 percent gain in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and 22 percent growth in revenue for Fiscal Year 2008, ending July 31.

CEO Arthur Becker cited strong “organic growth” of hosting contracts in the fourth quarter of 2008. In a statement, he said that the despite the slowing economic climate, NaviSite attracted $1 million of new hosting recurring bookings in Q4.

Total revenue for the quarter ending in July 31 was $40.2 million, representing an increase of 16 percent over the same quarter in 2007. Total revenue for FY 2008 was $154.6 million, which was a 22 percent increase over revenue of $126.2 million in FY 2007.

EBITDA, excluding impairment costs, stock-based compensation, severance, costs related to discontinued operations and other non-operational charges, for the fourth quarter was $10.1 million representing a year-over-year increase of 54 percent and a 17 percent sequential increase. EBITDA for FY 2008 was $34.2 million representing an increase of 48% over EBITDA of $23.1 million in fiscal year 2007. EBITDA for the fourth quarter of fiscal year 2008 includes a $1.6 million settlement gain.

While NaviSite reported a net loss to shareholders of $1.2 million for the quarter and $11.3 million for FY 2008, those losses were lower than the $17.1 million and $25.9 million reported for comparable periods in FY 2007.

In April, NaviSite reported that it had signed an agreement with chip manufacturer Intel Corp., under which Intel would offer NaviSite’s suite of managed services through Intel’s reseller community.