Savvis swings to 1st-quarter loss as sales edge lower

ST. LOUIS—Computer network service provider Savvis Inc. said Tuesday it swung to a first-quarter loss as revenue edged lower and the year-ago results were boosted by a hefty gain on a sale.

The company also gave a full-year revenue outlook below Wall Street's expectations, and shares tumbled in after-hours trading.

For the three months ended March 31, Savvis posted a loss of $4.2 million, or 8 cents per share, compared with a profit of $114.5 million, or $2.13 per share, in the corresponding period a year ago. The year-ago quarter's results included a gain of $125.2 million on the sale of the company's CDN assets.

Revenue slipped 1 percent to $203.3 million, from $205.2 million last year.

Analysts, on average, were expecting a loss of 13 cents per share, on sales of $207.7 million, according to a poll by Thomson Financial.

The company said its network business declined slightly during the quarter.

Shares fell $2.88, or 15.4 percent, to $15.80 in after-hours electronic trading. The stock fell $1.35, or 6.7 percent, to close at $18.68 in the regular session.