Canadian hosting company Peer 1 finished fiscal 2010 with substantial year-over-year revenue growth but a drop in net income. The company said in a statement that its revenue increased both year-over-year and in the fourth quarter across all three of its offerings: colocation, hosting and bandwidth.

Fabio Banducci, Peer 1 president and CEO, said the year was that of strategic investment in infrastructure, products and geographic expansion. "On this basis, we launched our new state of the art data center in the greater Toronto area, which almost immediately began attracting anchor clients, while also continuing to expand our solution set, adding value for both existing and potential clients," he said in a statement.

Peer 1 also expanded its hosting services to Europe by establishing a data center in the UK. The new flagship $40m facility in Toronto will have capacity to house about 1,000 cabinets at full build-out.

Peer 1 finished the final quarter of the fiscal year on 30 June with a net loss of $371,000 on $25.59m in sales. The company reported $2.2m net income on $97.9m in sales for the full year. While the revenue grew from $92.3m reported for fiscal 2009, net income decreased from $5.7m.

Peer 1 attributed growth in yearly and quarterly revenue to increase in value of the Canadian dollar against the US dollar, organic growth and the acquisition of VIA. The US hosting company Peer 1 bought in March contributed about $0.5m in the fourth quarter and about $0.6m for the full year.