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, 2010.

The company delivered record bookings of $45.5 for the quarter ended March 31, 2010. For fiscal year 2010, Terremark produced total revenues of $292.3 million and EBITDA, as adjusted, of $81.0 million, respectively, in line with previously announced guidance.

“With another very strong quarter and fiscal year, Terremark continues to produce the positive results that reflect the strong demand among federal and enterprise customers for our suite of industry-leading solutions across our global footprint and our proven ability to successfully execute our strategic plan,” said Manuel D. Medina, Chairman and CEO of Terremark. “Our consecutive quarters of record bookings, robust pipeline and strategic expansion create a solid base for fiscal 2011 and a clear path for sustained growth.”

“Our strong performance across all our key financial metrics, and the positive momentum we have generated in previous quarters, validates the confidence we have in our ability to deliver strong results,” said Jose Segrera, Chief Financial Officer of Terremark.

Q4 FY10 Financial Highlights

• Total revenues for the quarter and fiscal year ended March 31, 2010 were $82.5 million, representing increases of 11% compared to the third quarter of fiscal 2010 and 20% over the previous fiscal year, respectively. Total revenues for the fiscal year ended March 31, 2010 were $292.3 million, representing a 17% increase over the prior fiscal year.
• EBITDA, as adjusted, for the fourth quarter was $26.5 million, representing a 20% year-over-year increase and a 34% sequential increase; EBITDA, as adjusted, for fiscal year 2010 was $81.0 million, representing a 32% 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 $12.4 million, representing a 15% year-over-year increase.
• Gross profit margins, excluding depreciation and amortization, were 50% for the quarter and 45% for the fiscal year ended March 31, 2010.
• Cross connects billed to customers increased to 9,154 as of March 31, 2010 from 8,883 the previous quarter and 8,339 a year earlier, representing increases of 3% and 10%, respectively. The consistent increase in cross connects billed to customers underscores the compelling value of Terremark’s network-neutral model.
• Utilization of total colocation space utilization was 29.0% as of March 31, 2010. Utilization of built-out colocation space was 54.4% as of March 31, 2010.

Q4 FY10 Business Highlights

• Terremark increased the annualized cloud computing run rate to $21.9 million during the fourth quarter, a 27% increase from the previous quarter. The company’s cloud computing solutions continue to gain traction with Fortune 500 enterprises and federal government agencies looking to deploy and manage applications faster, while substantially reducing their total cost of ownership.
• During the quarter ended March 31, 2010, Terremark added 56 new customers, for a total of 1,350 customers at the end of the period.
• Terremark had another quarter of record bookings with $45.5 million of new annual contract value booked in the quarter ended March 31, 2010. The company had $30.1 million of recurring bookings in the quarter, also the best in the company’s history.
• Terremark recently announced the launch of the third datacenter at its Network Access Point (NAP) of the Capital Region campus. With more than 65 percent of the available datacenter space at the campus contracted, including the recently launched third datacenter, the company acquired 27 acres of land adjacent to the campus to accommodate future success-based growth. The $5-million land acquisition provides Terremark the ability to add at least 250,000 square feet of high-quality datacenter space and close to 100,000 square feet of Class A office space, effectively doubling the size of the campus. Terremark also unveiled the NAP of the Capital Region’s 72,000-square-foot headquarters building, which includes a 150-seat auditorium built to the Federal government’s Physical Security Standards for Sensitive Compartmented Information Facilities (SCIF) and approximately 50,000 square feet of Class A office space that can be built to SCIF specifications in order to meet customer demands.

Business Outlook

• For the first quarter of fiscal 2011, the Company expects revenues to range from $77 million to $79 million and EBITDA, as adjusted, to range from $18 million to $20 million.
• For the full 2011 fiscal year, the Company raises guidance of revenues to range from $338 million to $343 million and EBITDA, as adjusted, to range from $98 million to $101 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 27, 2010 at 5:00 p.m. ET, to discuss all of the above.
• To participate on the conference call, please dial 800-573-4840 (domestic) or 617-224-4326 (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 Thursday, May 27, 2010 at 8:00 p.m. (ET) by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and providing the following replay code: 33029808. 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, 2010 and a comparison to the quarter and fiscal year ended March 31, 2009 and the quarter ended December 31, 2009 can be found on the attached balance sheet and statement of operations and in the Company's Annual Report on Form 10-K.

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 data centers 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, data storage 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, including uncertainties inherent in government contracting, its 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's services or products, Terremark's ability to manage its growth, and the successful integration of operations of acquired companies. Terremark does not assume any obligation to update these forward-looking statements.

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, 2010 and 2009 and the three months ended December 31, 2009, presented within this press release.