July 15, 2003 -- Managed hosting provider Inflow Inc. today announced sharply higher sales for the first half of 2003 and said it would double its sales staff and expand its network of data centers.
The Denver-based provider said it is expanding its Nashville data center center by 70 percent and plans to acquire additional facilities in several current markets. Inflow also said it is targeting new second-tier markets for acquisitions.
Driving the expansion is the strong sales performance for Inflow, which has 13 data centers in 12 second-tier markets around the country.
Inflow gained 141 new customers during the first six months of 2003, an 18 percent gain over the prior six-month period. The total dollar value of the new contracts was $10.2 million, a 40 percent increase over the second half of 2002.
"Companies are focusing more on their core competencies and finding that significantly more cost savings can be achieved through outsourcing data center and managed services functions," said Art Zeile, chief executive officer for Inflow. "As a result, Inflow has acquired a steadily increasing customer base and leading position in our industry."
The gains give Inflow's more than 750 customers. Newly-acquired customers include International Dairy Queen, Cisco Learning Institute (CLI), the National Federation of Independent Business (NFIB), and Rubio's.
The company's Nashville data center turned EBITDA-positive for the first time in the first quarter of 2003, showing a $17,000 EBITDA gain on quarterly recurring revenues of $434,000.
Inflow data centers showing revenue gains in the first quarter were led by the Pittsburgh facility with a 20.5 percent gain on revenues of $521,100. Other sites with first quarter gains in recurring revenue included San Diego (up 12 percent), Atlanta (up 10.8 percent), Philadelphia (up 4.7 percent) and Austin (up 2 percent). The Austin location site is already one of Inflow's strongest, with 95 customers and $1.4 million in recurring revenue in the first quarter.