NaviSite Reports Fourth Fiscal Quarter and 2000 Annual Results
Andover, MA- September 19, 2000 NaviSite, Inc. (Nasdaq: NAVI), a leading provider of managed application hosting services, and a majority-owned operating company of CMGI, Inc. (Nasdaq: CMGI), today announced results for its fiscal 2000 fourth quarter ended July 31, 2000.
Revenue for the fiscal 2000 fourth quarter increased to $20.5 million, up 455% compared to the same period in fiscal 1999. Sequentially, revenue grew 45% over the third quarter of fiscal 2000. Net loss for the fiscal 2000 fourth quarter was $19.5 million or $0.34 per basic and diluted share. This compares to a net loss of $16.4 million or $0.29 per basic and diluted share in the third fiscal quarter. The losses, which were better than planned, reflect the Company's investment in building out its technical, business, and sales and marketing infrastructure to support growth, as well as costs associated with operating two recently opened data centers during their ramp-up stage. Both gross margins and operating margins improved versus the prior quarter and versus the same period last year.
NaviSite concluded fiscal year 2000, with total revenue of $49.8 million, up 373% from $10.5 million for fiscal year 1999. The company ended fiscal year 2000 with a total of 362 customers, representing an increase of 187% over the total of 126 customers at the conclusion of fiscal year 1999.
"Our fourth quarter caps off a year of dramatic growth and accomplishment," commented Joel Rosen, president and CEO of NaviSite, Inc. "We have not only grown our customer base, but also have established partnerships both domestically and overseas which position us well to add new layers of growth through new value-added services and expansion internationally."
Major milestones recently achieved by the Company include:
Total customer base increased to 362, with the addition of 79 new customers in the fourth quarter, up 187% from the same period last year;
Average annualized revenue per customer increased to $227,000, up 13% sequentially from the previous quarter and up 93% from the same period in the prior year;
Continued diversification of revenue streams, with 57% of revenue in Q4 coming from non-CMGI related companies, compared to 48% in the prior quarter, and 38% in the same period last year. On a customer basis, 93% of customers were non- related to CMGI;
Announced major expansion of managed storage services in partnership with EMC and Compaq;
Announced plans for a strategic partnership with NTT DATA, Japan's largest systems integrator and a member of the NTT family of companies, to deliver co- branded managed services to the Japanese market.
Began rollout of NaviSite's "data center-in-a-data center" model for expanding data center capacity more quickly and with lower capital investment using space from Level 3 Communications;
Entered an agreement with Cisco Systems to develop and deploy Arrowpoint technology to enhance the management and scalability of applications across globally distributed data centers, supporting NaviSite's international expansion plans;
Introduction of new industry-leading Application Availability and Customer Response SLAs;
The Company's Streaming Media Group created and managed the first live webcast by Anheuser-Busch and became one of the first companies to provide support for Microsoft's Windows Media Technologies 7 and Digital Broadcast Manager;
Forged alliance with Deloitte Consulting for jointly serving customers. Overall, 43 companies joined NaviSite's Alliance Program in the quarter, bringing the total membership to 193;
Appointed Tricia Gilligan as Chief Operating Officer.
"Across all key metrics, this was a tremendous year for NaviSite," stated Ken Hale, CFO of NaviSite. "We exceeded analyst consensus estimates on revenue growth, gross margin, operating margin, and earnings per share each quarter. Margins have increased significantly from the beginning of the year, and we expect them to continue to improve as we continue to execute our business plan and increase volume through the infrastructure we have put in place."
About NaviSite, Inc. NaviSite, Inc., is a leading provider of outsourced Web hosting and application services for companies conducting mission-critical business on the Internet. The Company's goal is to help customers focus on their core competencies by outsourcing the management and hosting of mission critical Web sites and applications. NaviSite is a majority-owned operating company of CMGI, Inc. with minority investment from Microsoft Corporation.
NaviSite's solutions provide secure, reliable, co-location and high-performance hosting services, including high-performance Internet access, and high-availability server management solutions through load balancing, clustering, mirroring and storage services. In addition, NaviSite's enhanced management services, beyond basic co-location and hosting, are designed to meet the expanding needs of businesses as their Web sites and Internet applications become more complex and as their needs for outsourcing all aspects of their online businesses intensify. The Company's application services, which include application hosting, management and rental, provide cost-effective access to, as well as rapid deployment and reliable operation of, business-critical applications, including managed services for streaming media.
For more information about NaviSite, please visit www.navisite.com or by phone on the East Coast call 888-298-8222, on the West Coast call 888-929-0401. NaviSite is headquartered at 400 Minuteman Road, Andover, MA 01810. |
