Shares in Savvis surged 13.8%, to $20, even though the company reported a net loss of $11.3 million in the first quarter.
That compares to a $5.4 million loss in the three months ended Dec. 31 and a profit of $600,000 a year earlier.
Revenue also was down from a year ago for the St. Louis provider of data center and network services. Revenue in the first quarter of 2010 was $216.6 million, compared to $221.5 million in the first quarter of 2009.
"Leveraged" free cash flow in the first quarter of 2010 was minus $4.5 million, down from $33.2 million in the first quarter of 2009.
"We've made good progress refocusing our sales and marketing programs and personnel, expanding our collaborative partnerships, and improving our client satisfaction efforts. The initial results of these and other initiatives are reflected in strong bookings and reduced churn in the first quarter," said Jim Ousley, chairman and chief executive officer for Savvis, in the company's earnings release.
A transcript of the earnings call can be found here
This article first appeared in Securities Industry News.
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