Terremark expecting operating cash flow to contribute 'significantly' to liquidity in fiscal 2009

By Jennifer Lanning Drey

Portland, Ore., June 2 - Terremark Worldwide, Inc. expects operating cash flow to be a significant source of liquidity in fiscal 2009, Jose Segrera, chief financial officer of Terremark, said Monday during the company's earnings call for the fourth quarter of fiscal 2008.

Segrera added that Terremark's business plan is fully funded to continue its planned growth initiatives in Miami, Virginia and Florida.

The company ended the fourth quarter with cash and cash equivalents of $97 million and total debt of $304 million.

Terremark reported fourth-quarter adjusted EBITDA of $13.5 million, representing a 20% sequential increase from the prior quarter.

"We continued to see strong demand and favorable pricing throughout the year and are pleased with our results," Segrera said.

The CFO also announced that the company has raised its full-year fiscal 2009 EBITDA guidance to a range of $58 million to $60 million from $55 million to $58 million.

Additionally, the company raised revenue guidance to $255 million to $260 million from $252 million to $255 million.

The increased expectations resulted from the company's signing of an anchor tenant in its NAP of the Capital Region (NCR), strong bookings in the third and fourth quarter and what it views as a strong pipeline, Segrera said.

Terremark is a Miami-based operator of carrier-neutral integrated internet exchanges and provider of managed IT infrastructure services.

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