Iron Mountain Ekes Out a Profit for its First Quarter

By Stuart J. Johnston

Cloud storage and information management vendor Iron Mountain announced better than expected revenues for its first quarter of 2011, beating analysts' estimates on Thursday.

Iron Mountain (NYSE: IRM) said it brought in $799 million in revenues for the quarter, which ended March 31 -- driven by storage revenue internal growth of 3 percent as well as strong international growth, the company said in a statement.

Adjusted earnings per share (EPS) came in at $0.26, up nearly a quarter at 24 percent above last year's first quarter, but still below expectations of $0.27. The reported EPS for the quarter totaled $0.37.

Revenues outpaced the average forecast of financial analysts polled by Thomson Reuters. Analysts had projected revenues of $791.4 million -- up from $776.5 million for the same quarter last year.

Meanwhile, adjusted EPS, up from $0.21 last year, had been projected at only $0.22.

"We are off to a good start to the year, posting solid storage revenue growth while continuing to drive operational efficiencies and strong profitability in our business. We remain on track to meet our goals for 2011," Richard Reese, chairman and newly appointed CEO of Iron Mountain, said in a statement.

Overall, gross profits after depreciation and amortization rang in at $467 million for the quarter, with gross margins up slightly to 58.5 percent from 58.1 percent in 2010.

For the entire fiscal year, Iron Mountain expects to post adjusted EPS of between $1.16 and $1.24 per diluted share, up between 1 and 8 percent from last year, according to the company's statement.

Officials are also predicting revenues for the entire year to come in between $3.22 billion and $3.29 billion.

In mid-April, Iron Mountain announced new strategic initiatives aimed at increasing the firm's return on investment, including the possible sale of some assets.

The company's stock was up a fraction at around $0.12 per share or 0.38 percent in late trading Thursday.

Stuart J. Johnston is a contributing editor at InternetNews.com, the news service of Internet.com, the network for technology professionals. Follow him on Twitter @stuartj1000.

This article was originally published on April 28, 2011