October 28, 2009 / 12:56 PM / 9 years ago

UPDATE 1-Savvis posts narrower-than-expected Q3 loss

* Q3 loss $0.18/shr vs est loss of $0.23/shr * Q3 rev $213.2 mln vs est $213.5 mln

Oct 28 (Reuters) - IT services company Savvis Inc SVVS.O posted a third-quarter loss that was wider than a year ago but slimmer than analyst expectations.

Savvis posted third-quarter net loss of $9.9 million, or 18 cents a share, compared to a loss of $3.8 million, or 7 cents a share, in the year-ago period.

Revenue fell about 2 percent to $213.2 million. Hosting services revenue was $148.1 million in the third quarter, up 2 percent from the year-ago quarter.

Analysts on average were expecting the company to post a loss of 23 cents a share on revenue of $213.5 million, according to Thomson Reuters I/B/E/S.

The company raised its 2009 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) outlook to $215 to $220 million, from its previous view of $195 to $210 million.

Earlier this month, Savvis said it would collaborate with Thomson Reuters (TRI.TO) to expand the news and financial data provider’s hosting capabilities.

“... our collaboration with Thomson Reuters will drive our revenue growth over the long term, while making efficient use of our capital resources,” Chief Executive Phil Koen said in a statement.

Shares of the St Louis-based company closed at $17.51 Tuesday on Nasdaq. (Reporting by Sudipto Ganguly in Bangalore; Editing by Aradhana Aravindan)

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