Cyxtera Technologies saw higher utility costs due to Storm Uri and lost more than $8 million in revenue from customer Lumen.
The data center company this week announced its first quarterly results since announcing plans to merge with the Starboard Value Acquisition Corp special purpose acquisition company (SPAC). Registering a net loss of $52.6 million against revenues of $172.9m, it saw EBITDA figures of $38.9m.
“In the first quarter of 2021 our team was able to continue the momentum we built in 2020 to deliver solid results,” said Nelson Fonseca, Cyxtera CEO. “Based on the ongoing positive trends we’re seeing across our business, we believe that we are well-positioned to continue our growth trajectory and deliver strong results in line with our previously disclosed targets.”
Year-on-year core revenue grew six percent, which the company said offset a loss of revenue from Lumen. The company reported losing $8.8 million of net revenue from Lumen – the company Cyxtera was spun out from and previously a core customer.
The company also said Storm Uri has impacted expenses because of higher energy costs, reported a $5.8 million increase in utility costs compared to the previous year.
“Storm Uri... drove utility costs well above ordinary operating levels for a certain period between February and March,” the company said.
Cyxtera also shared utilization rates of its facilities; the company has a utilization rate of 67 percent across its entire portfolio of 61 facilities. Its international and west coast facilities registered at 77 and 72 percent full, while its east coast and central US facilities were in the low 60s.
Cyxtera’s $3.4 billion merger with SVAC is expected to close in mid-2021. The ‘blank check’ shell company, founded by the Starboard Value hedge fund, IPO’d in September and raised $360 million. It announced plans to merge with the data center company in February.
Cyxtera was formed in 2017 when Lumen, formerly CenturyLink, sold off its data center and colocation business to a consortium including Medina Capital Advisors and Longview Asset Management.