Jun, 2002 : NaviSite Meets Guidance, Increases Profitability

📅 June 7, 2002 - Managed Web hosting firm NaviSite (navisite.com 👉 Total Reviews: 1
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NaviSite continued to handle difficult market conditions, posting revenues of $14.7 million for the third quarter, compared to $15.7 million for the second quarter. The company said it had also signed eight new managed hosting customers and churned 22 customers, but continued to increase its average annualized revenue per customer to $352,000 in the third quarter versus $350,000 in the second quarter.
"We've strengthened our balance sheet, significantly reduced cash burn, implemented operating efficiencies, rationalized excess assets and sold or shut down non-productive business lines," said Kevin Lo, NaviSite's CFO and senior vice president of finance and strategy. "Going forward, while we still expect revenue pressures in the fourth quarter due to longer sales cycles and general economic conditions, we also expect continued improvements in our cost and operating structures."