Colocation and IT services specialist Terremark (news, filings) [a subsidiary of Verizon (NYSE:VZ, news, filings)] reported earnings yesterday, and the results were solid. Revenues of $65.9M were up 11% sequentially and 32% over the same period last year, meeting guidance despite the worsening economy. EBITDA of $18.4M was above guidance, resulting primarily from better than expected gross margins, and diluted earnings per share came to a loss of $0.15.
As if we needed further evidence that the colocation sector is one of the strongest in tech, the company maintained its guidance for the next quarter (their fiscal Q4) with a range of $73.4-78.4M in revenue and Ebitda of $18.7-20.7M. The company even provided fiscal 2010 guidance for revenues of $290-300M and EBITDA of $80-85M. Based on the recent growth that guidance seems very tame, but these days it would be crazy to come out with anything other than guidance that assumes a deep continuing recession.
Terremark chalked up its success in part to its growing business with the Federal government, which it hopes to improve on this year since its recent partnership with CSC. I've had my doubts that a colocation specialist can have much success with such a cloud offering, but they are making a good effort so I'll keep watching. The company began construction of a second datacenter in the Washington DC region just a few weeks ago, and seems to be selling space at an accelerating rate.
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