On Jan. 29, SAVVIS (NASDAQ:SVVS) released fourth-quarter earnings for the period ended Dec. 31, 2006.

  • Revenue increased by 17% thanks to strong growth in hosting revenue, 46% of which came from managed hosting services.
  • Free cash flow grew by 76.2% because of a rise in cash from operations. It was slightly offset by a 7.6% increase in capital expenditures.
  • Management expects total revenue of $815 million to $835 million for fiscal 2007.
  • Savvis is a two-star stock in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$200.7

$171.5

17.0%

Net Profit

($6.8)

($13.1)

N/A

EPS

($0.13)

($1.98)

N/A

Diluted Shares

51.3

12.1

324.0%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

41.0%

35.4%

5.6

Operating Margin

5.8%

1.7%

4.1

Net Margin

(3.4%)

(7.7%)

4.2

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$98.7

$61.2

61.4%

Accounts Rec.

$44.9

$51.6

(12.9%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$43.0

$46.4

(7.3%)

Long-Term Debt *

$382.3

$335.1

14.1%

*Includes capital and financing method lease obligations, net of current portion.

Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$41.0

$31.3

31.1%

Capital Expenditures

$22.1

$20.6

7.6%

Free Cash Flow

$18.9

$10.7

76.2%



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