Colocation provider Switch and Data Facilities (SDXC) said its third quarter results "surpassed our expectations" and again increased its revenue guidance for 2008. The Tampa-based company reported a net loss of $32,000 on revenues of $44.1 million for the three-month period ending Sept. 30, up from $35.4 million in the comparable period in 2007.
CFO George Pollock said Switch and Data is raising its revenue guidance for 2008 from $170 million to $171.5 million, and increasing its EBITDA projection from $55 million to $56 million. It was the third time this year the company has increased its guidance.
Switch and Data said it continues to execute on its strategic plan, and has already signed 25 sales contracts for its New Jersey data center, which opened its doors this month. The company's monthly revenue per cabinet grew to $2,026, up from $1,816 in the same period last year, while its PAIX interconnection business also continues to grow, with a total of 20,879 cross connections, compared to 19,124 a year ago.
Switch and Data CEO Keith Olsen said that the company has responded to the economic slowdown by consulting more closely with customers about future requirements. "We have not seen a slowdown that is impacting our growth or our funnel," he said.
Olsen said customer responses to the economy ran the gamut. "We continue to receive mixed signals about the impact on our customers' businesses," said Olsen. "Certain customers have shared with us their plans to postpone some of their expansions, and some smaller customers have indicated that these projects will stop. Other customers have indicated they will continue their expansion, and in a number of cases are accelerating their expansions."
Olsen said the company will wait until 2010 to build out its recently acquired space in Atlanta for colocation customers. Last month Switch and Data said that it has leased a 79,200 square foot facility at 180 Peachtree Street, a former Macy’s department store that now houses data center space for companies including Level 3.
"Atlanta was really an opportunity for us to acquire an excellent site for future growth," said Olsen, who called the lease terms "very favorable."