Internap (INAPQ) 10-Q 24 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014
Document and Entity Information Abstract	'
Entity Registrant Name	'INTERNAP NETWORK SERVICES CORP
Entity Central Index Key	'0001056386
Trading Symbol	'inap
Current Fiscal Year End Date	'--12-31
Entity Filer Category	'Accelerated Filer
Entity Common Stock Shares Outstanding	54,318,111
Document Type	'10-Q
Document Period End Date	31-Mar-14
Amendment Flag	'false
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q1

UNAUDITED_CONDENSED_CONSOLIDAT

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Direct costs of network, sales and services, exclusive of depreciation and amortization, shown below:	'	'
Direct costs of customer support	$8,927	$7,151
Direct costs of amortization of acquired technologies	1,461	1,179
Sales and marketing	10,103	7,484
General and administrative	11,398	9,686
Depreciation and amortization	17,465	10,258
Loss on disposal of property and equipment, net	'	3
Exit activities, restructuring and impairments	1,384	248
Total operating costs and expenses	86,498	68,879
(Loss) income from operations	-4,537	820
Non-operating expenses:	'	'
Interest expense	6,491	2,421
Other, net	101	131
Total non-operating expenses	6,592	2,552
Loss before income taxes and equity in (earnings) of equity-method investment	-11,129	-1,732
(Benefit) provision for income taxes	-417	-63
Equity in (earnings) of equity-method investment, net of taxes	-37	-26
Net loss	-10,675	-1,643
Other comprehensive income (loss):	'	'
Foreign currency translation adjustment	63	-663
Unrealized gain (loss) on interest rate swap	49	-49
Total other comprehensive income (loss)	112	-712
Comprehensive loss	-10,563	-2,355
Basic and diluted net loss per share (in dollars per share)	($0.21)	($0.03)
Weighted average shares outstanding used in computing basic and diluted net loss per share (in shares)	51,027	50,771
Operating segments	'	'
Revenues:	'	'
Total revenues	81,961	69,699
Direct costs of network, sales and services, exclusive of depreciation and amortization, shown below:	'	'
Direct costs of network, sales and services, exclusive of depreciation and amortization	35,760	32,870
Operating segments | Data center services	'	'
Revenues:	'	'
Total revenues	58,283	44,392
Direct costs of network, sales and services, exclusive of depreciation and amortization, shown below:	'	'
Direct costs of network, sales and services, exclusive of depreciation and amortization	25,891	22,647
Operating segments | IP services	'	'
Revenues:	'	'
Total revenues	23,678	25,307
Direct costs of network, sales and services, exclusive of depreciation and amortization, shown below:	'	'
Direct costs of network, sales and services, exclusive of depreciation and amortization	$9,869	$10,223

UNAUDITED_CONDENSED_CONSOLIDAT1

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$25,202	$35,018
Accounts receivable, net of allowance for doubtful accounts of $2,119 and $1,995, respectively	22,913	23,927
Deferred tax asset	492	371
Prepaid expenses and other assets	16,620	22,533
Total current assets	65,227	81,849
Property and equipment, net	342,749	331,963
Investment in joint venture	2,648	2,602
Intangible assets, net	56,658	57,699
Goodwill	130,313	130,387
Deposits and other assets	8,262	7,999
Deferred tax asset	1,848	1,742
Total assets	607,705	614,241
Current liabilities:	'	'
Accounts payable	28,752	29,774
Accrued liabilities	12,132	13,549
Deferred revenues	7,103	6,729
Capital lease obligations	5,858	5,489
Term loan, less discount of $1,405 and $1,387, respectively	1,595	1,613
Exit activities and restructuring liability	2,500	2,286
Other current liabilities	2,435	2,493
Total current liabilities	60,375	61,933
Deferred revenues	3,762	3,804
Capital lease obligations	55,523	49,800
Term loan, less discount of $7,652 and $8,006, respectively	288,598	288,994
Exit activities and restructuring liability	2,507	1,877
Deferred rent	12,423	14,617
Deferred tax liability	8,181	8,591
Other long-term liabilities	2,392	2,415
Total liabilities	433,761	432,031
Commitments and contingencies (note 4)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.001 par value, 20,000 shares authorized; no shares issued or outstanding	'	'
Common stock, $0.001 par value; 120,000 shares authorized; 54,318 and 54,023 shares outstanding, respectively	54	54
Additional paid-in capital	1,256,003	1,253,106
Treasury stock, at cost; 540 and 461 shares, respectively	-4,074	-3,474
Accumulated deficit	-1,076,695	-1,066,020
Accumulated items of other comprehensive loss	-1,344	-1,456
Total stockholders' equity	173,944	182,210
Total liabilities and stockholders' equity	$607,705	$614,241

UNAUDITED_CONDENSED_CONSOLIDAT2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified
Allowance for doubtful accounts receivable (in dollars)	$2,119	$1,995
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	120,000	120,000
Common stock, shares outstanding	54,318	54,023
Treasury stock, shares	540	461
Term Loan Current	'	'
Term loan, discount (in dollars)	1,405	1,387
Term Loan Noncurrent	'	'
Term loan, discount (in dollars)	$7,652	$8,006

UNAUDITED_CONDENSED_CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash Flows from Operating Activities:	'	'
Net loss	($10,675)	($1,643)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	18,926	11,437
Loss on disposal of property and equipment, net	'	3
Stock-based compensation expense, net of capitalized amount	1,941	1,637
Equity in (earnings) of equity-method investment	-37	-26
Provision for doubtful accounts	43	329
Non-cash change in capital lease obligations	28	121
Non-cash change in exit activities and restructuring liability	1,608	394
Non-cash change in deferred rent	-736	-430
Deferred taxes	-658	137
Other, net	546	-2
Changes in operating assets and liabilities:	'	'
Accounts receivable	936	-255
Prepaid expenses, deposits and other assets	-680	397
Accounts payable	1,890	-4,580
Accrued and other liabilities	439	-831
Deferred revenues	394	-371
Exit activities and restructuring liability	-764	-737
Other liabilities	4	'
Net cash flows provided by operating activities	13,205	5,580
Cash Flows from Investing Activities:	'	'
Purchases of property and equipment	-24,756	-6,909
Additions to acquired technology	-737	'
Net cash from acquisition	74	'
Net cash flows used in investing activities	-25,419	-6,909
Cash Flows from Financing Activities:	'	'
Proceeds from credit agreements	'	9,999
Principal payments on credit agreements	-750	-875
Return of deposit collateral on credit agreement	4,378	'
Payments on capital lease obligations	-1,360	-1,104
Proceeds from exercise of stock options	860	1,397
Tax withholdings related to net share settlements of restricted stock awards	-600	-1,232
Other, net	-44	-639
Net cash flows provided by financing activities	2,484	7,546
Effect of exchange rates on cash and cash equivalents	-86	-218
Net (decrease) increase in cash and cash equivalents	-9,816	5,999
Cash and cash equivalents at beginning of period	35,018	28,553
Cash and cash equivalents at end of period	25,202	34,552
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	5,831	2,342
Cash paid for income taxes	'	'
Non-cash acquisition of property and equipment under capital leases	5,955	9,528
Additions to property and equipment included in accounts payable	5,013	3,398
Capitalized stock-based compensation	$97	$97

NATURE_OF_OPERATIONS_AND_BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation Of Financial Statements [Abstract]	'
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	'
	1.           NATURE OF OPERATIONS AND BASIS OF PRESENTATION
	Internap Network Services Corporation (“we,” “us” or “our”) provides high-performance information technology (“IT”) infrastructure services that power the applications shaping the way we live, work and play. We provide services at 52 data centers across North America, Europe and the Asia-Pacific region and through 88 Internet Protocol (“IP”) service points, which include 25 content delivery network (“CDN”) points of presence (“POPs”).
	We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These financial statements include all of our accounts and those of our wholly-owned subsidiaries. We have eliminated all intercompany transactions and balances in the accompanying financial statements.
	We have condensed or omitted certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP. In the opinion of management, the accompanying financial statements reflect all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary for a fair statement of our financial position as of March 31, 2014 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2013 was derived from our audited financial statements, but does not include all disclosures required by GAAP. You should read the accompanying financial statements and the related notes in conjunction with our financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission.
	The preparation of financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Actual results may differ materially from these estimates.
	The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for any future periods.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
FAIR VALUE MEASUREMENTS	'
	2.           FAIR VALUE MEASUREMENTS
	We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
		●	Level 1: Quoted prices in active markets for identical assets or liabilities;
		●	Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
		●	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Assets and liabilities measured at fair value on a recurring basis are summarized as follows (in thousands):
			Level 1			Level 2		Level 3		Total
	March 31, 2014:
	Interest rate swap (note 3)		$	—		$	728	$	—	$	728
	Asset retirement obligations(1)			—			—		2,412		2,412
	December 31, 2013:
	Money market funds(2)		$	5,006		$	—	$	—	$	5,006
	Interest rate swap (note 3)			—			777		—		777
	Asset retirement obligations(1)			—			—		2,357		2,357
	-1	We calculate the fair value of the asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. Asset retirement obligations of $1.4 million and $1.0 million are included in “Other current liabilities” and “Other long-term liabilities,” respectively, in the consolidated balance sheets for both periods presented.
	-2	Included in “Cash and cash equivalents” in the consolidated balance sheet as of December 31, 2013. Unrealized gains and losses on money market funds were nominal due to the short-term nature of the investments.
	The following table provides a summary of changes in our Level 3 asset retirement obligations for the three months ended March 31, 2014 (in thousands):
		Balance, January 1, 2014		$	2,357
		Accretion			55
		Balance, March 31, 2014		$	2,412
	The fair value of our Level 3 liability, estimated using a discount cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements, is as follows (in thousands):
			March 31,					December 31,
			2014					2013
			Carrying			Fair		Carrying		Fair
			Amount			Value		Amount		Value
	Term loan		$	299,250		$	292,700	$	300,000	$	293,125

INTEREST_RATE_SWAP

INTEREST RATE SWAP	3 Months Ended
	Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
INTEREST RATE SWAPS	'
	3.           INTEREST RATE SWAP
	As of March 31, 2014 and December 31, 2013, the fair value of our interest rate swap was $0.7 million and $0.8 million, respectively, and was included in “Other long-term liabilities” in the accompanying consolidated balance sheets. During the three months ended March 31, 2014 and 2013, we recorded a gain of less than $0.1 million and a loss of less than $0.1 million, respectively, as the effective portion of the change in fair value of our interest rate swap, designated and qualified as a cash flow hedge, in “Other comprehensive income (loss)” in the accompanying consolidated statements of operations and comprehensive loss. We did not recognize any hedge ineffectiveness during the three months ended March 31, 2014 or 2013.
	During the three months ended March 31, 2014 and 2013, we reclassified $0.2 million and $0, respectively, from “Other comprehensive (loss) income” in the accompanying consolidated statements of operations and comprehensive loss as an increase to interest expense. Through March 31, 2015, we estimate that we will reclassify an additional $0.8 million to interest expense since the hedge interest rate currently exceeds the variable interest rate on our debt.

COMMITMENTS_CONTINGENCIES_AND_

COMMITMENTS, CONTINGENCIES AND LITIGATION	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS, CONTINGENCIES AND LITIGATION	'
	4.           COMMITMENTS, CONTINGENCIES AND LITIGATION
	Capital Leases
	During the three months ended March 31, 2014, we exercised a renewal option of an existing operating lease for company-controlled data center space in Montreal, Quebec, Canada. The lease extension triggered a new lease agreement which expires in 2032, with the new terms resulting in capital lease treatment. We recorded property of $6.0 million, net of the deferred rent balance on the previous operating lease, and a capital lease obligation of $7.4 million. In addition, we fully amortized the related intangible asset from the previous operating lease, beneficial lease interest, with a net book value of $0.8 million.
	As of March 31, 2014, future minimum capital lease payments and the present value of the minimum lease payments for all capital leases are as follows (in thousands):
	2014	$	8,199
	2015		11,282
	2016		10,239
	2017		9,761
	2018		10,038
	Thereafter		44,840
	Remaining capital lease payments		94,359
	Less: amounts representing imputed interest		(32,978	)
	Present value of minimum lease payments		61,381
	Less: current portion		(5,858	)
		$	55,523
	Litigation
	We are subject to legal proceedings, claims and litigation arising in the ordinary course of business. Although the outcome of these matters is currently not determinable, we do not expect that the ultimate costs to resolve these matters will have a material adverse impact on our financial condition, results of operations or cash flows.

EXIT_ACTIVITIES_AND_RESTRUCTUR

EXIT ACTIVITIES AND RESTRUCTURING LIABILITY	3 Months Ended
	Mar. 31, 2014
Restructuring and Related Activities [Abstract]	'
EXIT ACTIVITIES AND RESTRUCTURING LIABILITY	'
	5.           EXIT ACTIVITIES AND RESTRUCTURING LIABILITY
	In prior years, we implemented exit activities and restructuring plans which resulted in substantial charges for our real estate obligations. In addition, during the three months ended March 31, 2014, we recorded initial exit activity charges related to ceasing use of a portion of data center space, as well as subsequent plan adjustments in sublease income assumptions for certain properties included in our previously-disclosed plans. We included these initial exit activity charges and subsequent plan adjustments in “Exit activities, restructuring and impairments” in the accompanying statements of operations and comprehensive loss.
	The following table displays the transactions and balances for exit activities and restructuring charges, substantially related to our data center services segment, during the three months ended March 31, 2014 (in thousands):
		31-Dec-13		Initial		Subsequent		Cash			31-Mar-14
		Restructuring		Charges		Plan		Payments			Restructuring
		Liability				Adjustments					Liability
	Real estate obligations:
	2014 exit activities	$	—	$	1,454	$	—	$	(51	)	$	1,403
	2011 – 2013 exit activities		67		—		12		(37	)		42
	2007 restructuring		3,296		—		138		(513	)		2,921
	2001 restructuring		800		—		4		(163	)		641
	Total	$	4,163	$	1,454	$	154	$	(764	)	$	5,007

OPERATING_SEGMENTS

OPERATING SEGMENTS	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
OPERATING SEGMENTS	'
	6.           OPERATING SEGMENTS
	We operate in two business segments: data center services and IP services. The data center services segment includes colocation, hosting and cloud services. Colocation involves providing physical space within data centers and associated services such as power, interconnection, environmental controls and security while allowing our customers to deploy and manage their servers, storage and other equipment in our secure data centers. Hosting and cloud services involve the provision and maintenance of hardware, operating system software, data center infrastructure and interconnection, while allowing our customers to own and manage their software applications and content. Our IP services segment includes our patented Performance IP™ service, CDN services and IP routing and hardware and software platform.
	Segment profit is segment revenues less direct costs of network, sales and services, exclusive of depreciation and amortization for the segment and does not include direct costs of customer support, direct costs of amortization of acquired technologies or any other depreciation or amortization associated with direct costs. The following table shows operating results for our business segments, along with reconciliations from segment profit to loss before income taxes and equity in (earnings) of equity-method investment:
		Three Months Ended
		March 31,
		2014			2013
	Revenues:
	Data center services	$	58,283		$	44,392
	IP services		23,678			25,307
	Total revenues		81,961			69,699
	Direct costs of network, sales and services, exclusive of depreciation and amortization:
	Data center services		25,891			22,647
	IP services		9,869			10,223
	Total direct costs of network, sales and services, exclusive of depreciation and amortization		35,760			32,870
	Segment profit:
	Data center services		32,392			21,745
	IP services		13,809			15,084
	Total segment profit		46,201			36,829
	Exit activities, restructuring and impairments		1,384			248
	Other operating expenses, including direct costs of customer support, depreciation and amortization		49,354			35,761
	(Loss) income from operations		(4,537	)		820
	Non-operating expenses		6,592			2,552
	Loss before income taxes and equity in (earnings) of equity-method investment	$	(11,129	)	$	(1,732	)

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
NET LOSS PER SHARE	'
	7.           NET LOSS PER SHARE
	We compute basic net loss per share by dividing net loss attributable to our common stockholders by the weighted average number of shares of common stock outstanding during the period. We exclude all outstanding options and unvested restricted stock as such securities are anti-dilutive for all periods presented.
	Basic and diluted net loss per share is calculated as follows (in thousands, except per share amounts):
		Three Months Ended
		March 31,
		2014			2013
	Net loss attributable to common stock	$	(10,675	)	$	(1,643	)
	Weighted average shares outstanding, basic and diluted		51,027			50,771
	Net loss per share, basic and diluted	$	(0.21	)	$	(0.03	)
	Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans		7,615			7,204

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2014
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	8.           RECENT ACCOUNTING PRONOUNCEMENTS
	In January 2014, we adopted new guidance that requires entities to present, on a prospective basis, unrecognized tax benefits as a reduction to any related deferred tax assets for net operating losses, similar tax losses or tax credit carryforwards if such settlement is required or expected in the event an uncertain tax position is disallowed. Because the guidance impacts presentation only, adoption had no effect on our financial condition or results of operations.
	In January 2014, we adopted new guidance, to be applied prospectively, regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. Adoption of this standard did not have an impact on our financial condition or results of operations and is not expected to have a material impact in the future, absent any material transactions involving the derecognition of subsidiaries or groups of assets within a foreign entity.

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis	'
			Level 1			Level 2		Level 3		Total
	March 31, 2014:
	Interest rate swap (note 3)		$	—		$	728	$	—	$	728
	Asset retirement obligations(1)			—			—		2,412		2,412
	December 31, 2013:
	Money market funds(2)		$	5,006		$	—	$	—	$	5,006
	Interest rate swap (note 3)			—			777		—		777
	Asset retirement obligations(1)			—			—		2,357		2,357
	-1	We calculate the fair value of the asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. Asset retirement obligations of $1.4 million and $1.0 million are included in “Other current liabilities” and “Other long-term liabilities,” respectively, in the consolidated balance sheets for both periods presented.
	-2	Included in “Cash and cash equivalents” in the consolidated balance sheet as of December 31, 2013. Unrealized gains and losses on money market funds were nominal due to the short-term nature of the investments.
Schedule of asset retirement obligation	'
		Balance, January 1, 2014		$	2,357
		Accretion			55
		Balance, March 31, 2014		$	2,412
Schedule of fair value of term loan and revolving credit facility	'
			March 31,					December 31,
			2014					2013
			Carrying			Fair		Carrying		Fair
			Amount			Value		Amount		Value
	Term loan		$	299,250		$	292,700	$	300,000	$	293,125

COMMITMENTS_CONTINGENCIES_AND_1

COMMITMENTS, CONTINGENCIES AND LITIGATION (Tables)	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of future minimum capital lease payments and the present value of the minimum lease payments for all capital leases	'
	2014	$	8,199
	2015		11,282
	2016		10,239
	2017		9,761
	2018		10,038
	Thereafter		44,840
	Remaining capital lease payments		94,359
	Less: amounts representing imputed interest		(32,978	)
	Present value of minimum lease payments		61,381
	Less: current portion		(5,858	)
		$	55,523

EXIT_ACTIVITIES_AND_RESTRUCTUR1

EXIT ACTIVITIES AND RESTRUCTURING LIABILITY (Tables)	3 Months Ended
	Mar. 31, 2014
Restructuring and Related Activities [Abstract]	'
Schedule of transactions and balances for exit activities and restructuring charges	'
		31-Dec-13		Initial		Subsequent		Cash			31-Mar-14
		Restructuring		Charges		Plan		Payments			Restructuring
		Liability				Adjustments					Liability
	Real estate obligations:
	2014 exit activities	$	—	$	1,454	$	—	$	(51	)	$	1,403
	2011 – 2013 exit activities		67		—		12		(37	)		42
	2007 restructuring		3,296		—		138		(513	)		2,921
	2001 restructuring		800		—		4		(163	)		641
	Total	$	4,163	$	1,454	$	154	$	(764	)	$	5,007

OPERATING_SEGMENTS_Tables

OPERATING SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Schedule of operating results for business segments, along with reconciliations from segment profit to loss before income taxes and equity in (earnings) of equity-method investment	'
		Three Months Ended
		March 31,
		2014			2013
	Revenues:
	Data center services	$	58,283		$	44,392
	IP services		23,678			25,307
	Total revenues		81,961			69,699
	Direct costs of network, sales and services, exclusive of depreciation and amortization:
	Data center services		25,891			22,647
	IP services		9,869			10,223
	Total direct costs of network, sales and services, exclusive of depreciation and amortization		35,760			32,870
	Segment profit:
	Data center services		32,392			21,745
	IP services		13,809			15,084
	Total segment profit		46,201			36,829
	Exit activities, restructuring and impairments		1,384			248
	Other operating expenses, including direct costs of customer support, depreciation and amortization		49,354			35,761
	(Loss) income from operations		(4,537	)		820
	Non-operating expenses		6,592			2,552
	Loss before income taxes and equity in (earnings) of equity-method investment	$	(11,129	)	$	(1,732	)

NET_LOSS_PER_SHARE_Tables

NET LOSS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Schedule of basic and diluted net loss per share	'
		Three Months Ended
		March 31,
		2014			2013
	Net loss attributable to common stock	$	(10,675	)	$	(1,643	)
	Weighted average shares outstanding, basic and diluted		51,027			50,771
	Net loss per share, basic and diluted	$	(0.21	)	$	(0.03	)
	Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans		7,615			7,204

NATURE_OF_OPERATIONS_AND_BASIS1

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Detail Textuals)	3 Months Ended
	Mar. 31, 2014
	Point
	Data_Center
Organization, Consolidation and Presentation Of Financial Statements [Abstract]	'
Number of data centers	52
Number of internet protocol service points	88
Number of content delivery network ("CDN") points of presence ("POPs")	25

FAIR_VALUE_MEASUREMENTS_Summar

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis (Details) (Recurring basis, USD $)	Mar. 31, 2014		Dec. 31, 2013
In Thousands, unless otherwise specified
Level 1 | Money market funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Assets, fair value	'		$5,006	[1]
Level 1 | Interest rate swap	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	'		'
Level 1 | Asset retirement obligations	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	'	[2]	'	[2]
Level 2 | Money market funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Assets, fair value	'		'	[1]
Level 2 | Interest rate swap	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	728		777
Level 2 | Asset retirement obligations	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	'	[2]	'	[2]
Level 3 | Money market funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Assets, fair value	'		'	[1]
Level 3 | Interest rate swap	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	'		'
Level 3 | Asset retirement obligations	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	2,412	[2]	2,357	[2]
Total | Money market funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Assets, fair value	'		5,006	[1]
Total | Interest rate swap	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	728		777
Total | Asset retirement obligations	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	$2,412	[2]	$2,357	[2]
[1]	Included in "Cash and cash equivalents" in the consolidated balance sheet as of December 31, 2013. Unrealized gains and losses on money market funds were nominal due to the short-term nature of the investments.
[2]	We calculate the fair value of the asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. Asset retirement obligations of $1.4 million and $1.0 million are included in "Other current liabilities" and "Other long-term liabilities," respectively, in the consolidated balance sheets for both periods presented.

FAIR_VALUE_MEASUREMENTS_Summar1

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis (Parentheticals) (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Other current liabilities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Asset retirement obligation	$1.40	$1.40
Other long-term liabilities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Asset retirement obligation	$1	$1

FAIR_VALUE_MEASUREMENTS_Summar2

FAIR VALUE MEASUREMENTS - Summary of changes in Level 3 financial asset - Asset retirement obligation (Details 1) (Asset retirement obligations, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Asset retirement obligations	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'
Balance, January 1, 2014	$2,357
Accretion	55
Balance, March 31, 2014	$2,412

FAIR_VALUE_MEASUREMENTS_Summar3

FAIR VALUE MEASUREMENTS - Summary of fair value Level 3 debt - Term loan (Details 2) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Carrying Amount	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Term loan	$299,250	$300,000
Fair Value	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Term loan	$292,700	$293,125

INTEREST_RATE_SWAP_Detail_Text

INTEREST RATE SWAP (Detail Textuals) (Designated as Hedging Instrument, Cash Flow Hedging, Interest rate swap, USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
	Other comprehensive (loss) income	Other comprehensive (loss) income	Other long-term liabilities	Other long-term liabilities
Derivative [Line Items]	'	'	'	'
Fair value of the interest rate swaps	'	'	$0.70	$0.80
Change in fair value of our interest rate swaps	'	'	'	'
	gain of less than $0.1 million	loss of less than $0.1 million
Increase in interest rate of interest rate swaps	0.2	0	'	'
Estimated reclassification of additional increase in interest expense through March 31, 2015	$0.80	'	'	'

COMMITMENTS_CONTINGENCIES_AND_2

COMMITMENTS, CONTINGENCIES AND LITIGATION - Future minimum capital lease payments and present value of minimum lease payments for capital leases (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'	'
2014	$8,199	'
2015	11,282	'
2016	10,239	'
2017	9,761	'
2018	10,038	'
Thereafter	44,840	'
Remaining capital lease payments	94,359	'
Less: amounts representing imputed interest	-32,978	'
Present value of minimum lease payments	61,381	'
Less: current portion	-5,858	-5,489
Capital lease obligations	$55,523	$49,800

COMMITMENTS_CONTINGENCIES_AND_3

COMMITMENTS, CONTINGENCIES AND LITIGATION (Detail Textuals) (USD $)	Mar. 31, 2014
In Millions, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
Property of deferred rent balance on previous operating lease	$6
Capital lease obligations	7.4
Net book value of intangible asset	$0.80

EXIT_ACTIVITIES_AND_RESTRUCTUR2

EXIT ACTIVITIES AND RESTRUCTURING LIABILITY - Summary of activity and balances for restructuring and asset impairment activity (Details) (Data center services, Exit activities and Restructuring charges, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Restructuring Reserve [Roll Forward]	'
Restructuring Liability, December 31, 2013	$4,163
Initial Charges	1,454
Subsequent Plan Adjustments	154
Cash Payments	-764
Restructuring Liability, March 31, 2014	5,007
2014 exit activities	'
Restructuring Reserve [Roll Forward]	'
Restructuring Liability, December 31, 2013	'
Initial Charges	1,454
Subsequent Plan Adjustments	'
Cash Payments	-51
Restructuring Liability, March 31, 2014	1,403
2011 - 2013 exit activities	'
Restructuring Reserve [Roll Forward]	'
Restructuring Liability, December 31, 2013	67
Initial Charges	'
Subsequent Plan Adjustments	12
Cash Payments	-37
Restructuring Liability, March 31, 2014	42
2007 restructuring	'
Restructuring Reserve [Roll Forward]	'
Restructuring Liability, December 31, 2013	3,296
Initial Charges	'
Subsequent Plan Adjustments	138
Cash Payments	-513
Restructuring Liability, March 31, 2014	2,921
2001 restructuring	'
Restructuring Reserve [Roll Forward]	'
Restructuring Liability, December 31, 2013	800
Initial Charges	'
Subsequent Plan Adjustments	4
Cash Payments	-163
Restructuring Liability, March 31, 2014	$641

OPERATING_SEGMENTS_Summary_of_

OPERATING SEGMENTS - Summary of operating results for business segments - (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Segment profit:	'	'
Exit activities, restructuring and impairments	$1,384	$248
(Loss) income from operations	-4,537	820
Non-operating expenses	-6,592	-2,552
Loss before income taxes and equity in (earnings) of equity-method investment	-11,129	-1,732
Operating segments	'	'
Revenues:	'	'
Total revenues	81,961	69,699
Direct costs of network, sales and services, exclusive of depreciation and amortization:	'	'
Total direct costs of network, sales and services, exclusive of depreciation and amortization	35,760	32,870
Segment profit:	'	'
Total segment profit	46,201	36,829
Operating segments | Data center services	'	'
Revenues:	'	'
Total revenues	58,283	44,392
Direct costs of network, sales and services, exclusive of depreciation and amortization:	'	'
Total direct costs of network, sales and services, exclusive of depreciation and amortization	25,891	22,647
Segment profit:	'	'
Total segment profit	32,392	21,745
Operating segments | IP services	'	'
Revenues:	'	'
Total revenues	23,678	25,307
Direct costs of network, sales and services, exclusive of depreciation and amortization:	'	'
Total direct costs of network, sales and services, exclusive of depreciation and amortization	9,869	10,223
Segment profit:	'	'
Total segment profit	13,809	15,084
Segment reconciling items	'	'
Segment profit:	'	'
Exit activities, restructuring and impairments	1,384	248
Other operating expenses, including direct costs of customer support, depreciation and amortization	49,354	35,761
(Loss) income from operations	-4,537	820
Non-operating expenses	6,592	2,552
Loss before income taxes and equity in (earnings) of equity-method investment	($11,129)	($1,732)

OPERATING_SEGMENTS_Detail_Text

OPERATING SEGMENTS (Detail Textuals)	3 Months Ended
	Mar. 31, 2014
	Segment
Segment Reporting [Abstract]	'
Number of operating segments	2

NET_LOSS_PER_SHARE_Details

NET LOSS PER SHARE (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]	'	'
Net loss attributable to common stock	($10,675)	($1,643)
Weighted average shares outstanding, basic and diluted (in shares)	51,027	50,771
Net loss per share, basic and diluted (in dollars per share)	($0.21)	($0.03)
Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans (in shares)	7,615	7,204