Terremark Concludes Fiscal 2010 On a Strong Note

Datacenter and cloud specialist Terremark (news, filings) [a subsidiary of Verizon (NYSE:VZ, news, filings)] reported earnings for its fiscal fourth quarter and full year 2010, which ended March 31.  Revenues for the quarter were $82.5M, up 11% sequentially and up 20% over the same quarter last year.  Likewise, adjusted EBITDA of $26.5M was up strongly from $19.8M in the prior quarter and $22.1M in the same quarter last year.  As strong as that was, it was mostly expected:  slightly above estimates and inline with guidance.  

The company’s cloud computing products finished the quarter at an annual run rate of $21.9M, which suggests it is now contributing about 6.6% of revenues.  That’s not a huge number yet, but it is no longer negligible either.  Utilization of built-out colocation space fell to 54.4% from 63.9% in the prior quarter, as newly constructed space came online.

Looking forward, revenues and EBITDA for fiscal Q1 (ending June 30) are projected to be in the ranges of $77-79M and $18-20M, respectively.  The company has, however, raised full year guidance to revenues from $338-343M and adjusted EBITDA of $98-101M.   

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Categories: Datacenter · Financials