MIAMI--(BUSINESS WIRE)--May. 26, 2009-- Terremark Worldwide, Inc. (NASDAQ:TMRK), a leading global provider of managed IT infrastructure services, today reported its results for the quarter and fiscal year ended March 31, 2009.

The Company exceeded previously announced adjusted EBITDA guidance for the quarter and the fiscal year with $22.1 million and $61.3 million, respectively. The Company also delivered record bookings of $31.8 million for the quarter ended March 31, 2009.

“The positive results Terremark produced in the fourth quarter and fiscal 2009 are a clear reflection on our Company’s ability to execute on our growth and performance strategies, and underscores the compelling value our full suite of world-class services offers CIOs from large enterprises and Federal government agencies,” said Manuel D. Medina, Chairman and CEO of Terremark. “As our Company heads into fiscal 2010, we believe our robust pipeline and the consistently strong customer demand for our products and services will continue to drive strong results.”

“As our EBITDA performance and record bookings indicate, our continued focus on the prudent management of our business and the interest in our superior IT infrastructure solutions helped drive our strong performance in the fourth quarter and fiscal year,” said Jose Segrera, Chief Financial Officer of Terremark.

Q4 & FY09 Financial Highlights

• Total revenues for the quarter and fiscal year ended March 31, 2009 were $68.9 million, representing increases of 5% compared to the third quarter of fiscal 2009 and 21% over the previous fiscal year, respectively. Total revenues for the fiscal year ended March 31, 2009 were $250.5 million, representing a 34% increase over the prior fiscal year.
• EBITDA, as adjusted, for the fourth quarter was $22.1 million, representing a 63% year-over-year increase and a 20% sequential increase; EBITDA, as adjusted, for fiscal year 2009 was $61.3 million, representing a 57% increase over the prior fiscal year. EBITDA, as adjusted, is defined as income (loss) from operations less depreciation, amortization, integration expenses, certain legal and professional costs, litigation and employment settlements, share-based payments, including share-settled liabilities and other non-cash expenses. EBITDA, as adjusted, should be considered in addition to, but not in lieu of, income (loss) from operations reported under generally accepted accounting principles (GAAP).
• Income from operations for the fourth quarter was $10.8 million, representing a 63% year-over-year increase and a 32% sequential increase.
• Gross profit margins, excluding depreciation and amortization, were 49% for the quarter and 46% for the fiscal year ended March 31, 2009.
• Cross connects billed to customers increased to 8,339 as of March 31, 2009 from 7,857 the previous quarter and 6,830 a year earlier, representing increases of 6% and 22%, respectively. The consistent increase in cross connects billed to customers underscores the compelling value of Terremark’s network-neutral model.
• Total colocation space utilization increased to 24.8% as of March 31, 2009 from 23.9% as of December 31, 2008. Utilization of built-out colocation space was 52.9% as of March 31, 2009, an increase from 51.1% as of December 31, 2008.

Business Highlights

Sales and Marketing

• During the quarter ended March 31, 2009, Terremark added 46 new customers, for a total of 1,100 customers at the end of the period.
• Terremark had a record bookings quarter with $31.8 million of new annual contract value booked in the quarter ended March 31, 2009.
• In February 2009, Terremark announced that its Enterprise Cloud™ platform had been selected by the U.S. General Services Administration (GSA) to power USA.gov, the Federal government’s official web portal, and GobiernoUSA.gov, its Spanish-language companion. Terremark’s Enterprise Cloud will also host Data.gov, a web site created to release vast amounts of raw data so taxpayers can see what’s going on more instantly and clearly, and, ideally, come back with suggestions on how to fix government problems, and it will use open formats and feeds that can be used by application developers.
• During the fourth quarter, Terremark announced a number of strategic upgrades to its Enterprise Cloud™ platform. In January, Terremark announced the addition of Dynamic Capacity Management, which provides a flexible “burst mode” for Enterprise Cloud-based computing environments, allowing customers to access additional computing power as needed. The Company also announced the addition of an extended suite of security services for its full range of virtualized offerings, including direct access to Terremark’s suite of managed security services that protect the business-critical applications running in customer environments with a variety of highly sophisticated security measures and the availability of multi-factor authentication as an additional layer of security for Enterprise Cloud customers.

Facilities

• Construction of the second datacenter at Terremark’s NAP of the Capital Region campus continues on budget and on schedule for completion in the fourth quarter of fiscal year 2010.

Business Outlook

• For the first quarter of fiscal 2010, the Company expects revenues to range from $63 million to $66 million and EBITDA, as adjusted, to range from $15 million to $17 million.
• For the full 2010 fiscal year, the Company maintains guidance of revenues between $290 million to $300 million and EBITDA, as adjusted, to range from $80 million to $85 million.

The foregoing statements regarding targets for the quarter and full year are forward-looking and actual results may differ materially. These are the Company’s targets, not predictions of actual performance.

Conference Call Information

• The Company will hold a conference call today, May 26, 2009 at 5:00 p.m. ET, to discuss all of the above.
• To participate on the conference call, please dial 800-510-0178 (domestic) or 617-614-3450 (international) five to ten minutes before the call and reference the passcode TMRK Call.
• A simultaneous live Webcast of the call will be available on the Internet at http://www.terremark.com, under the Investor Relations heading.
• A replay of the call will be available beginning on Tuesday, May 26, 2009 at 8:00 p.m. (ET) by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and providing the following replay code: 90939126. In addition, the Webcast will be available on the Company's web site at http://www.terremark.com.

Additional information regarding the Company's financial performance as of and for the quarter and fiscal year ended March 31, 2009March 31, 2008 can be found on the attached balance sheet and statement of operations and in the Company's Annual Report on Form 10-K. and a comparison to the quarter and fiscal year ended

About Terremark Worldwide, Inc.

Terremark Worldwide (NASDAQ:TMRK) is a leading global provider of IT infrastructure services delivered on the industry’s most robust and advanced technology platform. Leveraging datacenters in the United States, Europe and Latin America with access to massive and diverse network connectivity, Terremark delivers government and enterprise customers a comprehensive suite of managed solutions including managed hosting, colocation, disaster recovery, security and cloud computing services. Terremark’s Enterprise Cloud computing architecture delivers the agility, scale and economic benefits of cloud computing to mission-critical enterprise and Web 2.0 applications and its DigitalOps® service platform combines end-to-end systems management workflow with a comprehensive customer portal. More information about Terremark Worldwide can be found at http://www.terremark.com.

Statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, ability to cross-sell across an acquired customer base, ability to increase revenue yields within facilities, ability to refinance existing debt, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, Terremark's ability to obtain funding for its business plans, uncertainty in the demand for Terremark'sTerremark's ability to manage its growth, the successful integration of operations of acquired companies. Terremark does not assume any obligation to update these forward-looking statements. services or products and

Non-GAAP Financial Measures

Terremark continues to provide all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Terremark uses non-GAAP financial measures, such as EBITDA, as adjusted. In presenting these non-GAAP financial measures, Terremark excludes certain items that it believes are not good indicators of the Company's current or future operating performance. These items are depreciation, amortization, integration expenses, certain legal and professional costs, litigation and employment settlements, share-based payments, including share-settled liabilities and other non-cash expenses.

Terremark intends to calculate the various non-GAAP financial measures in future periods on a basis consistent with its calculation of those measures for the three and twelve months ended March 31, 2009 and 2008 and the three months ended December 31, 2008, presented within this press release.

Source: Terremark Worldwide, Inc.