Savvis reported total revenue of $216.6 million in the first quarter, down from $221.5 million in the first quarter of 2009 and down from $219.8 million in the final quarter of 2009.

The company reported losses of $11.3 million during the quarter, compared to a net loss of $5.4 million in the preceding three months.

The results beat Wall Street expectations.

The company's new CEO Jim Ousley was optimistic in his statement about the results, pointing out strength in bookings and slowed churn achieved during the quarter.

"We've made good progress refocusing our sales and marketing programs and personnel, expanding our collaborative partnerships and improving our client satisfaction efforts," he said.

"The initial results of these and other initiatives are reflected in strong bookings and reduced churn in the first quarter."

Churn rate has been a concern for the provider, which experienced loss of $6.1 million in revenue caused by colocation churn at the end of fourth quarter of 2009. About half of the churn was attributed to companies in the financial vertical.

Savvis attributed growth in managed services revenue to continued strength in its cloud computing offerings, reporting uptake from Software-as-a-Service providers and momentum in new wins for larger outsourcing contracts.

The company's revenue from managed services was $70.3 million during the first quarter, a four-percent jump sequentially and a three-percent jump year-over-year.

SaaS providers contributed $19.7 million to the total managed services revenue figure.

Revenue from cloud services was $2.8 million during the first quarter, up 14 percent sequentially and 100 percent year-over-year.

Overall, $82.5 million in Savvis's first-quarter revenue came from colocation, $70.3 million came from managed services and the rest was generated by the company's network business.