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The following content is from an older version of this website, and may not display correctly. Switch and Data acquisition yields first revenue for Equinix
Completion of its acquisition of Switch and Data during the quarter has allowed the global retail colocation service provider Equinix to increase its total quarterly revenue, but has also caused its net income to slide.
Post-acquisition activities have increased the company's operating expenditures. Equinix spent $4m in restructuring charges ÔÇô mostly termination benefits to some Switch and Data employees who were let go. A big chunk of another $5.8m went to professional fees related to the acquisition and another $1.2m was spent in consulting and IT associated with integrating Switch and Data.
Still, Switch and Data was responsible for $37.6m of the $296m in revenue Equinix reported for the year's second quarter. The revenue went up from $213m reported for the first quarter of 2009. Equinix reported a net loss of $2.4m for the quarter, down from a net income of $17.4m last year.
Savvis CEO sees "organic growth"
Provider of hosting services Savvis also completed a significant acquisition during the quarter, albeit a much smaller one than Equinix's Switch and Data deal. Savvis closed its $121m acquisition of Canadian provider of managed services Fusepoint in mid-June.
"The organic growth we are seeing - in combination with our strategic acquisition of Fusepoint - has left us poised to exit the year at double digit growth run rates for both revenue and adjusted EBITDA," CEO Jim Ousley said in a statement.
The company attributed $1.5m of the total Q2 revenue of $221.8m to Fusepoint. Savvis spent about $3.5m in acquisition- and integration-related costs during the quarter.
While increasing its revenue from the $219.9m it reported for Q2 2009, Savvis also increased its net quarterly loss from $6.2m in the second quarter of last year to $13.1m in this year's second quarter.
Citrix reports successful quarter in desktop virtualization sales
Provider of virtualization software Citrix reported growth in both revenue and income during the year's second quarter. Most emphasis in the firm's earnings announcement was placed on its desktop virtualization products. Citrix faces a tough fight in the market for server virtualization, currently dominated by VMware.
"We are excited about the trajectory we are seeing in XenDesktop licensing," President and CEO Mark Templeton said in a statement. "Clearly, the desktop virtualization revolution is here now and adoption is accelerating."
Citrix reported a revenue of $458m during the quarter, a 17 percent increase from the $393m in revenue it reported for the second quarter of 2009. The company's net income was $48m, up from $43m during the same period last year.
BMC license bookings increase 40 percent
BMC Software, provider of service management software for businesses, reported growth in quarterly sales year-over-year during the recently completed first quarter of fiscal 2011.
The company's core product segment, enterprise service management, which includes solutions for server and network management, increased license bookings by 40 percent year-over-year, bringing in $101 in revenue in the first quarter of 2011.
"The technology trends driving our markets ÔÇô such as cloud computing, virtualization and Software-as-a-Service ÔÇô represent a strengthening tailwind that is propelling the company forward," BMC Chairman and CEO Bob Beauchamp said in a statement.
BMC reported total revenue of $461m for the quarter, up two percent year-over-year, and net earnings of $93m, an increase from $82m in quarterly earnings it reported one year ago.
Completion of its acquisition of Switch and Data during the quarter has allowed the global retail colocation service provider Equinix to increase its total quarterly revenue, but has also caused its net income to slide.
Post-acquisition activities have increased the company's operating expenditures. Equinix spent $4m in restructuring charges ÔÇô mostly termination benefits to some Switch and Data employees who were let go. A big chunk of another $5.8m went to professional fees related to the acquisition and another $1.2m was spent in consulting and IT associated with integrating Switch and Data.
Still, Switch and Data was responsible for $37.6m of the $296m in revenue Equinix reported for the year's second quarter. The revenue went up from $213m reported for the first quarter of 2009. Equinix reported a net loss of $2.4m for the quarter, down from a net income of $17.4m last year.
Savvis CEO sees "organic growth"
Provider of hosting services Savvis also completed a significant acquisition during the quarter, albeit a much smaller one than Equinix's Switch and Data deal. Savvis closed its $121m acquisition of Canadian provider of managed services Fusepoint in mid-June.
"The organic growth we are seeing - in combination with our strategic acquisition of Fusepoint - has left us poised to exit the year at double digit growth run rates for both revenue and adjusted EBITDA," CEO Jim Ousley said in a statement.
The company attributed $1.5m of the total Q2 revenue of $221.8m to Fusepoint. Savvis spent about $3.5m in acquisition- and integration-related costs during the quarter.
While increasing its revenue from the $219.9m it reported for Q2 2009, Savvis also increased its net quarterly loss from $6.2m in the second quarter of last year to $13.1m in this year's second quarter.
Citrix reports successful quarter in desktop virtualization sales
Provider of virtualization software Citrix reported growth in both revenue and income during the year's second quarter. Most emphasis in the firm's earnings announcement was placed on its desktop virtualization products. Citrix faces a tough fight in the market for server virtualization, currently dominated by VMware.
"We are excited about the trajectory we are seeing in XenDesktop licensing," President and CEO Mark Templeton said in a statement. "Clearly, the desktop virtualization revolution is here now and adoption is accelerating."
Citrix reported a revenue of $458m during the quarter, a 17 percent increase from the $393m in revenue it reported for the second quarter of 2009. The company's net income was $48m, up from $43m during the same period last year.
BMC license bookings increase 40 percent
BMC Software, provider of service management software for businesses, reported growth in quarterly sales year-over-year during the recently completed first quarter of fiscal 2011.
The company's core product segment, enterprise service management, which includes solutions for server and network management, increased license bookings by 40 percent year-over-year, bringing in $101 in revenue in the first quarter of 2011.
"The technology trends driving our markets ÔÇô such as cloud computing, virtualization and Software-as-a-Service ÔÇô represent a strengthening tailwind that is propelling the company forward," BMC Chairman and CEO Bob Beauchamp said in a statement.
BMC reported total revenue of $461m for the quarter, up two percent year-over-year, and net earnings of $93m, an increase from $82m in quarterly earnings it reported one year ago.