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NaviSite Releases First Quarter Fiscal Year 2011 Financial Results

By Jyothi Shanbhag
TMCnet Contributor

NaviSite, Inc., a company specializing in enterprise-class, cloud-enabled hosting, managed applications and services, released its financial results for the first quarter fiscal year 2011, which ended Oct. 31.

The company revealed that its revenue for the quarter, which ended Oct. 31, was $33.4 million, representing a year-over-year increase of 9 percent and a sequential increase of 2 percent and the cash generated from operating activities for the first quarter of fiscal year 2011 was $6.5 million representing a 42 percent increase compared to the $4.6 million generated in the first quarter of fiscal year 2010 and representing an 83 percent increase over the $3.6 million generated in the fourth quarter of fiscal year 2010.

The company also experienced a gross margin increase at 38 percent for the first quarter compared to 37 percent recorded in the first quarter last year and 37 percent during the fourth quarter of fiscal year 2010. Gross margin, excluding depreciation, amortization and non cash stock compensation was 52 percent for the first quarter, compared to 52 percent recorded in the first quarter last year and 51 percent during the fourth quarter of fiscal year 2010.

“We are pleased with our strong first quarter results, which exceeded our plans for both revenue and profitability,” stated Brooks Borcherding, president and CEO of NaviSite (News - Alert).

Borcherding said that they remain optimistic about the progress they are seeing in the business particularly as their cloud offerings rapidly gain traction and continue to resonate well in the marketplace.

He said that they are confident that customers will continue to recognize the value of their innovative solutions, which are distinguished by company’s enterprise-class architecture, consumption-based billing, feature-rich management application, complementary managed services and world-class customer support.

NaviSite provides a full suite of reliable and scalable managed services, including Application Services, industry-leading Enterprise Hosting, and Managed Cloud Services for enterprises looking to outsource IT infrastructures and lower their capital and operational costs. Enterprise customers depend on NaviSite for customized solutions, delivered through a global footprint of state-of-the-art data centers