CyrusOne Lowers 2020 Forecast Despite 9 Percent Sales Growth In Q1

'The COVID-19 pandemic is evolving rapidly and the potential impact on our business is uncertain and unpredictable,' CyrusOne said in a statement during its earnings report Wednesday night..

Data center colocation specialist CyrusOne slightly lowered its 2020 revenue guidance by approximately $10 million despite increasing sales by 9 percent in the first quarter of 2020.

“The COVID-19 pandemic is evolving rapidly and the potential impact on our business is uncertain and unpredictable,” CyrusOne said in a statement during its earnings report Wednesday night.

The Dallas-based company, which recently donated $300,000 for coronavirus relief, lowered its 2020 revenue forecast from between $1.015 billion and $1.055 billion to between $1.01 billion and $1.045 billion.

[Related: Alibaba Aims To ‘Speed Up’ COVID-19 Recovery With $28 Billion Data Center Investment]

CyrusOne reported first-quarter revenue of $246 million, up 9 percent year over year. In addition, the company reported an $88 million backlog in annualized revenue, representing $610 million in total contract value.

“The nearly $90 million revenue backlog enhances our growth profile, and the company is very well positioned with a strong balance sheet, substantial liquidity including available forward equity, and capacity throughout our markets,” said Tesh Durvasula (pictured), CEO and interim president of CyrusOne, in a statement.

The company generated net income of $14.7 million in the first quarter, a decrease of 84 percent year over year. Net income for the first quarter included a $14 million gain on equity investment in GDS, a leading data center provider in China, compared with a $101 million gain in the first quarter of 2019.

In terms of expansion, CyrusOne is currently developing data centers in Frankfurt, Dublin, London, Northern Virginia, San Antonio, Phoenix and the New York Metro area, which is expected to add 438,000 square feet of colocation space and 88 MW of power capacity. The company recently completed construction on 50,000 square feet and 6 MW of power capacity in Amsterdam and Raleigh-Durham, N.C.

CyrusOne operates nearly 50 data centers throughout the world, providing mission-critical data centers and services to protect its 1,000 customers including more than 200 Fortune 1000 companies.

This month, the $1 billion data center colocation company donated $250,000 on behalf of its employees to various U.S.-based food assistance agencies and charities in Europe to aid communities hit hard by the coronavirus pandemic. Durvasula personally donated $50,000 on top of the company’s $250,000 to help fund meals for people in need.

“Our thoughts and well wishes go out to the people most directly impacted by COVID-19, particularly those who have lost loved ones, and we want to thank our first-responders and health-care professionals that are on the front line,” Durvasula said Wednesday.