NaviSite (Nasdaq: NAVI) announced better-than-expected second quarter results, a 2-for-1 stock split and plans for a follow-on offering to raise up to $600 million.
After market close Wednesday, the Web hosting and applications services provider said its board approved a 2-for-1 split, payable April 5 to shareholders of Mar. 22 record. It would be the company's first split since going public in October. NaviSite had almost 28.1 million shares outstanding as of Tuesday.
More shares will hit the market sometime in the next few months if the company follows through on other plans unveiled Wednesday. NaviSite wants to raise between $400 million and $600 million through a follow-on stock offering. A registration statement will be filed with the U.S. Securities and Exchange Commission before the current fiscal quarter concludes in April, NaviSite said.
Also Wednesday, NaviSite reported a fiscal second quarter loss of $11.4 million, or 41 cents per share. First Call's survey of three analysts predicted a loss of 63 cents per share for the quarter ended Jan. 31.
Second quarter revenue rose to $9.2 million, a 323 percent improvement year-over-year and 56 percent gain from the first quarter.
Average annualized revenue per customer for NaviSite increased 26 percent sequentially to $187,000 from $148,000 in the first quarter. About 64 percent of second quarter revenue came from recurring sources, rather than one-time sales, CFO Ken Hale said.
Shares of Navisite traded as high as 279 1/2 in afterhours activity following the announcements. The stock closed Wednesday's regular trading at 266, up 12 1/16 for the session.>