CHARLOTTE, N.C. -- Aug. 20, 2004 -- Peak 10, the Southeast's leading data center and managed services provider, today announced it has become EBITDA (earnings before interest, taxes, depreciation and amortization) positive, achieving another significant milestone in the company's operational plan. The company has an aggressive outlook for long-term growth and continued profitability, allowing the organization to enhance its service levels, product portfolio, infrastructure, and engineering and support resources.
"Peak 10 management's emphasis on customer service, sound operations and financial discipline has enabled the company to emerge as a leading independent data center service provider," said Kevin Brandon, partner with Seaport Capital. "The company's balance sheet strength and profitability position it very well for continued extension of services and expansion into new markets."
Peak 10 is the Southeast's leading data center and managed services provider with four enterprise-class facilities delivering the highest standard of infrastructure, security and performance to small, medium and large businesses nationwide. The company enjoys multiple center geographic diversity, vast technical and engineering expertise, and a strong financial position. It is committed to providing a high level of value and service executed locally from its four key market locations in Jacksonville and Tampa, Fla. and Raleigh and Charlotte, N.C.
"Given the recent history in the hosting industry, we placed a high priority on both the quality and stability of our data center services provider," said Michael Brady, chief information officer for LendingTree. "We have maintained a strong relationship with Peak 10 for the past two years and are pleased with their ability to provide a stable and robust hosting facility and their continuity and stability as a company."
"Peak 10 continues to execute on its business plan. The consistent growth in both revenue and cash flow is a confirmation of our business model and a testament to the hard work and commitment of all our employees to support our customers," said Brian Noonan, chief financial officer with Peak 10. "All facets of our business are well positioned for sustained growth. Our current backlog of uninstalled contracts will enable Peak 10 to achieve positive free cash flow in the third quarter of 2004. Thus, the company is poised to develop and implement exciting new opportunities for our customers and employees."
Recent operating highlights:
Renewal performance, new service offerings and Peak 10's reputation as a stable service provider helped increase the company's 2003 revenue by 123 percent and its customer base by 64 percent over 2002.
Peak 10 has capitalized on its 2003 success with a 44 percent increase in sales, 47 percent increase in revenue and 89 percent growth in managed services over the second quarter of 2003.
Companies like Global Knowledge, Paramount Parks, Quaero, eMason, Gibraltar, Oxford University Press, Wellman and ORCS Web have recently signed or renewed long-term contracts with Peak 10 in 2004.
The company has expanded its portfolio of managed services to meet growing demand with small and mid market businesses as well as divisions of large Fortune 1000 companies. The new services include managed VPN, remote monitoring and management, and email management.
In 2004, the company established a new line of credit with RBC Centura to help support future growth in revenues and working capital.
Peak 10's Tampa and Jacksonville data centers have gained significant market traction with companies like the Jacksonville Jaguars, GunnAllen Financial, Gerdau Ameristeel, Siemens and Vertex turning to Peak 10 for managed hosting, business continuity, disaster recovery, co-location and other related services.
The company has bolstered its sales, engineering and support staff in its Raleigh location to support its growing customer base and meet demand for data center and managed services. Peak 10 recently announced the appointment of Greg Rollet as general manager and vice president in Raleigh.
Peak 10 earned a prestigious Blue Diamond award for Top Growth Company of the Year from Information Technology Charlotte (iTC), a council of the Charlotte Chamber. Peak 10's customers Rollover Systems, HR America and Venetica were also honored with Blue Diamond awards.
The company has expanded its popular Executive Seminar Series to Charlotte and Jacksonville following the success of events in Raleigh and Tampa. The seminars provide executives with the information they need to know and understand on pressing topics within the ever-changing business world and technology industry.
"Our company has passed a very critical and significant measure of success for our customers, employees and investors," said David Jones, co-founder and president of Peak 10. "This milestone is momentous to us not only because of the challenges we have overcome to get here, but also because we are one of the few multiple data center and managed services providers that has achieved profitability from start-up mode. We have reached this point with significant available capacity for growth, which is in line with our original forecast. Peak 10 is full speed ahead."
About Peak 10, Inc.
Peak 10 is the Southeast's leading data center services provider offering a full range of hosting, storage, security and business continuity solutions. Customers such as the ATP Tour, RDU Airport, NeuStar, Jefferson Pilot, LendingTree and Siemens rely on Peak 10 to keep business critical applications up and running around-the-clock. The company owns and operates four enterprise-class data centers that deliver a higher standard of infrastructure, security and performance to businesses nationwide. Peak 10 has data centers in Charlotte and Raleigh, N.C., as well as Jacksonville and Tampa, Fla. Additional information about Peak 10 is available at www.Peak10.com.
