Internap (INAPQ) 10-Q 29 Jul 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 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	54,385,418
Document Type	'10-Q
Document Period End Date	30-Jun-14
Amendment Flag	'false
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q2

UNAUDITED_CONDENSED_CONSOLIDAT

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Direct costs of network, sales and services, exclusive of depreciation and amortization, shown below:	'	'	'	'
Direct costs of customer support	$9,553	$7,372	$18,480	$14,523
Direct costs of amortization of acquired technologies	1,551	1,190	3,012	2,369
Sales and marketing	9,977	8,077	20,080	15,561
General and administrative	11,429	9,555	22,826	19,242
Depreciation and amortization	17,917	11,554	35,382	21,811
Loss (gain) on disposal of property and equipment, net	32	-2	32	'
Exit activities, restructuring and impairments	1,561	683	2,945	932
Total operating costs and expenses	88,582	71,082	175,080	139,962
Loss from operations	-4,514	-1,099	-9,051	-279
Non-operating expenses:	'	'	'	'
Interest expense	6,806	2,474	13,297	4,895
Other, net	382	479	483	610
Total non-operating expenses	7,188	2,953	13,780	5,505
Loss before income taxes and equity in (earnings) of equity-method investment	-11,702	-4,052	-22,831	-5,784
Benefit for income taxes	-437	-288	-853	-352
Equity in (earnings) of equity-method investment, net of taxes	-80	-62	-117	-87
Net loss	-11,185	-3,702	-21,861	-5,345
Other comprehensive loss:	'	'	'	'
Foreign currency translation adjustment, net of taxes	107	-243	170	-906
Unrealized loss on interest rate swap, net of taxes	-329	-5	-280	-54
Total other comprehensive loss	-222	-248	-110	-960
Comprehensive loss	-11,407	-3,950	-21,971	-6,305
Basic and diluted net loss per share (in dollars per share)	($0.22)	($0.07)	($0.43)	($0.10)
Weighted average shares outstanding used in computing basic and diluted net loss per share (in shares):	51,045	50,856	51,125	50,965
Operating segments	'	'	'	'
Revenues:	'	'	'	'
Total revenues	84,068	69,983	166,029	139,683
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	36,562	32,653	72,323	65,524
Operating segments | Data center services	'	'	'	'
Revenues:	'	'	'	'
Total revenues	61,395	45,580	119,678	89,973
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	26,563	22,643	52,454	45,290
Operating segments | IP services	'	'	'	'
Revenues:	'	'	'	'
Total revenues	22,673	24,403	46,351	49,710
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	$9,999	$10,010	$19,869	$20,234

UNAUDITED_CONDENSED_CONSOLIDAT1

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$27,863	$35,018
Accounts receivable, net of allowance for doubtful accounts of $1,793 and $1,995, respectively	18,541	23,927
Deferred tax asset	472	371
Prepaid expenses and other assets	15,467	22,533
Total current assets	62,343	81,849
Property and equipment, net	338,015	331,963
Investment in joint venture	2,737	2,602
Intangible assets, net	54,969	57,699
Goodwill	130,313	130,387
Deposits and other assets	9,432	7,999
Deferred tax asset	1,629	1,742
Total assets	599,438	614,241
Current liabilities:	'	'
Accounts payable	24,711	29,774
Accrued liabilities	13,054	13,549
Deferred revenues	7,959	6,729
Capital lease obligations	6,195	5,489
Term loan, less discount of $1,424 and $1,387, respectively	1,576	1,613
Exit activities and restructuring liability	2,279	2,286
Other current liabilities	2,428	2,493
Total current liabilities	58,202	61,933
Deferred revenues	3,847	3,804
Capital lease obligations	54,409	49,800
Term loan, less discount of $7,290 and $8,006, respectively	288,210	288,994
Revolving credit facility	5,000	'
Exit activities and restructuring liability	3,196	1,877
Deferred rent	11,778	14,617
Deferred tax liability	7,492	8,591
Other long-term liabilities	2,784	2,415
Total liabilities	434,918	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; 54,385 and 54,023 shares outstanding, respectively	54	54
Additional paid-in capital	1,258,072	1,253,106
Treasury stock, at cost; 552 and 461 shares, respectively	-4,159	-3,474
Accumulated deficit	-1,087,881	-1,066,020
Accumulated items of other comprehensive loss	-1,566	-1,456
Total stockholders' equity	164,520	182,210
Total liabilities and stockholders' equity	$599,438	$614,241

UNAUDITED_CONDENSED_CONSOLIDAT2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified
Allowance for doubtful accounts receivable (in dollars)	$1,793	$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	54,385	54,023
Treasury stock, shares	552	461
Term loan current	'	'
Term loan, discount (in dollars)	1,424	1,387
Term loan noncurrent	'	'
Term loan, discount (in dollars)	$7,290	$8,006

UNAUDITED_CONDENSED_CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:	'	'
Net loss	($21,861)	($5,345)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	38,394	24,180
Impairment of property and equipment	537	555
Amortization of debt discount	678	120
Stock-based compensation expense, net of capitalized amount	3,897	3,378
Equity in (earnings) of equity-method investment	-117	-87
Provision for doubtful accounts	177	847
Non-cash change in capital lease obligations	353	121
Non-cash change in exit activities and restructuring liability	2,851	550
Non-cash change in deferred rent	-1,382	-877
Deferred taxes	-1,134	101
Other, net	489	92
Changes in operating assets and liabilities:	'	'
Accounts receivable	5,209	-3,386
Prepaid expenses, deposits and other assets	-3,191	-367
Accounts payable	-3,199	-3,739
Accrued and other liabilities	2,804	-1,097
Deferred revenues	1,328	-249
Exit activities and restructuring liability	-1,540	-1,466
Other liabilities	7	-596
Net cash flows provided by operating activities	24,300	12,735
Cash Flows from Investing Activities:	'	'
Purchases of property and equipment	-37,261	-20,545
Additions to acquired technology	-1,300	-269
Net cash from acquisition	74	'
Net cash flows used in investing activities	-38,487	-20,814
Cash Flows from Financing Activities:	'	'
Proceeds from credit agreements	5,000	9,999
Principal payments on credit agreements	-1,500	-1,750
Return of deposit collateral on credit agreement	6,153	'
Payments on capital lease obligations	-2,743	-2,273
Proceeds from exercise of stock options	878	1,848
Tax withholdings related to net share settlements of restricted stock awards	-685	-1,323
Other, net	-89	-82
Net cash flows provided by financing activities	7,014	6,419
Effect of exchange rates on cash and cash equivalents	18	-225
Net decrease in cash and cash equivalents	-7,155	-1,885
Cash and cash equivalents at beginning of period	35,018	28,553
Cash and cash equivalents at end of period	27,863	26,668
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	11,942	4,585
Cash paid for income taxes	134	127
Non-cash acquisition of property and equipment under capital leases	6,241	9,528
Additions to property and equipment included in accounts payable	6,045	4,360
Capitalized stock-based compensation	$190	$218

NATURE_OF_OPERATIONS_AND_BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 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 June 30, 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 and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future periods.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 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
	June 30, 2014:
	Interest rate swap (note 3)		$	—			$	1,056		$	—	$	1,056
	Asset retirement obligations(1)			—				—			2,467		2,467
	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. We include current asset retirement obligations of $1.4 million in “Other current liabilities” in the consolidated balance sheets for both periods presented. We include long-term asset retirement obligations of $1.1 million and $1.0 million in “Other long-term liabilities” in the consolidated balance sheets for June 30, 2014 and December 31, 2013, respectively.
	-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 six months ended June 30, 2014 (in thousands):
	Balance, January 1, 2014		$	2,357
	Accretion			110
	Balance, June 30, 2014		$	2,467
	The fair values of our other Level 3 liabilities, estimated using a discount cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements, are as follows (in thousands):
		30-Jun-14						31-Dec-13
		Carrying			Fair			Carrying		Fair
		Amount			Value			Amount		Value
	Term loan	$	298,500		$	292,205		$	300,000	$	293,125
	Revolving credit facility		5,000			4,784			—		—

INTEREST_RATE_SWAP

INTEREST RATE SWAP	6 Months Ended
	Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
INTEREST RATE SWAP	'
	3.           INTEREST RATE SWAP
	As of June 30, 2014 and December 31, 2013, the fair value of our interest rate swap was $1.1 million and $0.8 million, respectively, and was included in “Other long-term liabilities” in the accompanying consolidated balance sheets. During each of the three and six months ended June 30, 2014, we recorded losses of $0.3 million, 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 loss ” in the accompanying consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2013, we recorded less than a $0.1 million loss as the effective portion of the change in fair value of our interest rate swap. We did not recognize any hedge ineffectiveness during the three and six months ended June 30, 2014 and 2013.
	During the three and six months ended June 30, 2014, we reclassified $0.2 million and $0.4 million, respectively, as an increase to interest expense. Through June 30, 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. During the three and six months ended June 30, 2013, we reclassified less than $0.1 million as an increase to interest expense.

COMMITMENTS_CONTINGENCIES_AND_

COMMITMENTS, CONTINGENCIES AND LITIGATION	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS, CONTINGENCIES AND LITIGATION	'
	4.           COMMITMENTS, CONTINGENCIES AND LITIGATION
	Capital Leases
	During the six months ended June 30, 2014, we exercised a renewal option of an existing operating lease for company-controlled data center space in Montreal, Quebec, Canada. The lease extension, for accounting purposes, 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 June 30, 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	$	5,557
	2015		11,406
	2016		10,362
	2017		9,833
	2018		10,076
	Thereafter		45,415
	Remaining capital lease payments		92,649
	Less: amounts representing imputed interest		(32,045	)
	Present value of minimum lease payments		60,604
	Less: current portion		(6,195	)
		$	54,409
	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 LIABILITIES	6 Months Ended
	Jun. 30, 2014
Restructuring and Related Activities [Abstract]	'
EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	'
	5.           EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES
	In prior years, we implemented exit activities and restructuring plans which resulted in substantial charges for our real estate obligations. In addition, during the six months ended June 30, 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, of which $1.1 million was specifically related to the reversal of sublease assumptions in one of our facilities due to the short term remaining on the related lease obligation. 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 for the six months ended June 30, 2014.
	The following table displays the transactions and balances for exit activities and restructuring charges, substantially related to our data center services segment, during the six months ended June 30, 2014 (in thousands):
		31-Dec-13		Initial		Subsequent			Cash			30-Jun-14
				Charges		Plan			Payments
						Adjustments
	Real estate obligations:
	2014 exit activities	$	—	$	1,454	$	(1	)	$	(128	)	$	1,325
	2011 – 2013 exit activities		67		—		19			(69	)		17
	2007 restructuring		3,296		—		1,375			(1,025	)		3,646
	2001 restructuring		800		—		4			(317	)		487
	Total	$	4,163	$	1,454	$	1,397		$	(1,539	)	$	5,475

OPERATING_SEGMENTS

OPERATING SEGMENTS	6 Months Ended
	Jun. 30, 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						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Revenues:
	Data center services	$	61,395		$	45,580		$	119,678		$	89,973
	IP services		22,673			24,403			46,351			49,710
	Total revenues		84,068			69,983			166,029			139,683
	Direct costs of network, sales and services, exclusive of depreciation and amortization:
	Data center services		26,563			22,643			52,454			45,290
	IP services		9,999			10,010			19,869			20,234
	Total direct costs of network, sales and services, exclusive of depreciation and amortization		36,562			32,653			72,323			65,524
	Segment profit:
	Data center services		34,832			22,937			67,224			44,683
	IP services		12,674			14,393			26,482			29,476
	Total segment profit		47,506			37,330			93,706			74,159
	Exit activities, restructuring and impairments		1,561			683			2,945			932
	Other operating expenses, including direct costs of customer support, depreciation and amortization		50,459			37,746			99,812			73,506
	Loss from operations		(4,514	)		(1,099	)		(9,051	)		(279	)
	Non-operating expense		7,188			2,953			13,780			5,505
	Loss before income taxes and equity in (earnings) of equity-method investment	$	(11,702	)	$	(4,052	)	$	(22,831	)		(5,784	)

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	6 Months Ended
	Jun. 30, 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						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Net loss attributable to common stock	$	(11,185	)	$	(3,702	)	$	(21,861	)	$	(5,345	)
	Weighted average shares outstanding, basic and diluted		51,045			50,856			51,125			50,965
	Net loss per share, basic and diluted	$	(0.22	)	$	(0.07	)	$	(0.43	)	$	(0.10	)
	Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans		7,382			7,007			7,382			7,007

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 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 us 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.
	In May 2014, the Financial Accounting Standards Board issued new guidance which provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The guidance is effective the first quarter of 2018 and early adoption is not permitted. The guidance permits the application of its requirements retrospectively to all prior periods presented or in the year of adoption through a cumulative adjustment. We are currently evaluating the impact that the adoption will have on our consolidated financial statements and related disclosures. As we have not completed our evaluation, we cannot make a determination of the impact and have not yet selected a transition method or determined the effect of the standard on our ongoing financial reporting.

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Schedule of assets and liabilities measured at fair value on a recurring basis	'
			Level 1				Level 2			Level 3		Total
	June 30, 2014:
	Interest rate swap (note 3)		$	—			$	1,056		$	—	$	1,056
	Asset retirement obligations(1)			—				—			2,467		2,467
	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. We include current asset retirement obligations of $1.4 million in “Other current liabilities” in the consolidated balance sheets for both periods presented. We include long-term asset retirement obligations of $1.1 million and $1.0 million in “Other long-term liabilities” in the consolidated balance sheets for June 30, 2014 and December 31, 2013, respectively.
	-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 changes in asset retirement obligations	'
	Balance, January 1, 2014		$	2,357
	Accretion			110
	Balance, June 30, 2014		$	2,467
Schedule of fair value of term loan and revolving credit facility	'
		30-Jun-14						31-Dec-13
		Carrying			Fair			Carrying		Fair
		Amount			Value			Amount		Value
	Term loan	$	298,500		$	292,205		$	300,000	$	293,125
	Revolving credit facility		5,000			4,784			—		—

COMMITMENTS_CONTINGENCIES_AND_1

COMMITMENTS, CONTINGENCIES AND LITIGATION (Tables)	6 Months Ended
	Jun. 30, 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	$	5,557
	2015		11,406
	2016		10,362
	2017		9,833
	2018		10,076
	Thereafter		45,415
	Remaining capital lease payments		92,649
	Less: amounts representing imputed interest		(32,045	)
	Present value of minimum lease payments		60,604
	Less: current portion		(6,195	)
		$	54,409

EXIT_ACTIVITIES_AND_RESTRUCTUR1

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2014
Restructuring and Related Activities [Abstract]	'
Schedule of transactions and balances for exit activities and restructuring charges	'
		31-Dec-13		Initial		Subsequent			Cash			30-Jun-14
				Charges		Plan			Payments
						Adjustments
	Real estate obligations:
	2014 exit activities	$	—	$	1,454	$	(1	)	$	(128	)	$	1,325
	2011 – 2013 exit activities		67		—		19			(69	)		17
	2007 restructuring		3,296		—		1,375			(1,025	)		3,646
	2001 restructuring		800		—		4			(317	)		487
	Total	$	4,163	$	1,454	$	1,397		$	(1,539	)	$	5,475

OPERATING_SEGMENTS_Tables

OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 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						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Revenues:
	Data center services	$	61,395		$	45,580		$	119,678		$	89,973
	IP services		22,673			24,403			46,351			49,710
	Total revenues		84,068			69,983			166,029			139,683
	Direct costs of network, sales and services, exclusive of depreciation and amortization:
	Data center services		26,563			22,643			52,454			45,290
	IP services		9,999			10,010			19,869			20,234
	Total direct costs of network, sales and services, exclusive of depreciation and amortization		36,562			32,653			72,323			65,524
	Segment profit:
	Data center services		34,832			22,937			67,224			44,683
	IP services		12,674			14,393			26,482			29,476
	Total segment profit		47,506			37,330			93,706			74,159
	Exit activities, restructuring and impairments		1,561			683			2,945			932
	Other operating expenses, including direct costs of customer support, depreciation and amortization		50,459			37,746			99,812			73,506
	Loss from operations		(4,514	)		(1,099	)		(9,051	)		(279	)
	Non-operating expense		7,188			2,953			13,780			5,505
	Loss before income taxes and equity in (earnings) of equity-method investment	$	(11,702	)	$	(4,052	)	$	(22,831	)		(5,784	)

NET_LOSS_PER_SHARE_Tables

NET LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Schedule of basic and diluted net loss per share	'
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Net loss attributable to common stock	$	(11,185	)	$	(3,702	)	$	(21,861	)	$	(5,345	)
	Weighted average shares outstanding, basic and diluted		51,045			50,856			51,125			50,965
	Net loss per share, basic and diluted	$	(0.22	)	$	(0.07	)	$	(0.43	)	$	(0.10	)
	Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans		7,382			7,007			7,382			7,007

NATURE_OF_OPERATIONS_AND_BASIS1

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Detail Textuals)	6 Months Ended
	Jun. 30, 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 $)	Jun. 30, 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	1,056		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	2,467	[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	1,056		777
Total | Asset retirement obligations	'		'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'		'
Liabilities, fair value	$2,467	[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. We include current asset retirement obligations of $1.4 million in "Other current liabilities" in the consolidated balance sheets for both periods presented. We include long-term asset retirement obligations of $1.1 million and $1.0 million in "Other long-term liabilities" in the consolidated balance sheets for June 30, 2014 and December 31, 2013, respectively.

FAIR_VALUE_MEASUREMENTS_Summar1

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis (Parentheticals) (Details) (USD $)	Jun. 30, 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	$1.10	$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 $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
Asset retirement obligations	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'
Balance, January 1, 2014	$2,357
Accretion	110
Balance, June 30, 2014	$2,467

FAIR_VALUE_MEASUREMENTS_Summar3

FAIR VALUE MEASUREMENTS - Summary of fair value Level 3 debt - Term loan (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Carrying Amount	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Term loan	$298,500	$300,000
Revolving credit facility	5,000	'
Fair Value	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Term loan	292,205	293,125
Revolving credit facility	$4,784	'

INTEREST_RATE_SWAP_Detail_Text

INTEREST RATE SWAP (Detail Textuals) (Designated as Hedging Instrument, Cash Flow Hedging, Interest rate swap, USD $)	3 Months Ended		6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
	Other comprehensive loss	Other comprehensive loss	Other comprehensive loss	Other comprehensive loss	Other long-term liabilities	Other long-term liabilities
Derivative [Line Items]	'	'	'	'	'	'
Fair value of the interest rate swaps	'	'	'	'	$1.10	$0.80
Change in fair value of our interest rate swaps	'losses of $0.3 million	'less than a $0.1 million loss	'losses of $0.3 million	'less than a $0.1 million loss	'	'
Increase in interest rate of interest rate swaps	'$0.2 million	'less than $0.1 million	'$0.4 million	'less than $0.1 million	'	'
Estimated reclassification of additional increase in interest expense through June 30, 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 $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'	'
2014	$5,557	'
2015	11,406	'
2016	10,362	'
2017	9,833	'
2018	10,076	'
Thereafter	45,415	'
Remaining capital lease payments	92,649	'
Less: amounts representing imputed interest	-32,045	'
Present value of minimum lease payments	60,604	'
Less: current portion	-6,195	-5,489
Capital lease obligations	$54,409	$49,800

COMMITMENTS_CONTINGENCIES_AND_3

COMMITMENTS, CONTINGENCIES AND LITIGATION (Detail Textuals) (USD $)	Jun. 30, 2014
In Millions, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
Property net of deferred rent balance on previous operating lease and capital lease obligation	$6
Deferred rent balance on previous operating lease and capital lease obligation	7.4
Net book value of intangible asset	$0.80

EXIT_ACTIVITIES_AND_RESTRUCTUR2

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES - Summary of activity and balances for restructuring and asset impairment activity (Details) (Data center services, Exit activities and Restructuring charges, USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
Restructuring Reserve [Roll Forward]	'
31-Dec-13	$4,163
Initial Charges	1,454
Subsequent Plan Adjustments	1,397
Cash Payments	-1,539
30-Jun-14	5,475
2014 exit activities	'
Restructuring Reserve [Roll Forward]	'
31-Dec-13	'
Initial Charges	1,454
Subsequent Plan Adjustments	-1
Cash Payments	-128
30-Jun-14	1,325
2011 - 2013 exit activities	'
Restructuring Reserve [Roll Forward]	'
31-Dec-13	67
Initial Charges	'
Subsequent Plan Adjustments	19
Cash Payments	-69
30-Jun-14	17
2007 restructuring	'
Restructuring Reserve [Roll Forward]	'
31-Dec-13	3,296
Initial Charges	'
Subsequent Plan Adjustments	1,375
Cash Payments	-1,025
30-Jun-14	3,646
2001 restructuring	'
Restructuring Reserve [Roll Forward]	'
31-Dec-13	800
Initial Charges	'
Subsequent Plan Adjustments	4
Cash Payments	-317
30-Jun-14	$487

EXIT_ACTIVITIES_AND_RESTRUCTUR3

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES (Detail Textuals) (Data center services, Exit activities and Restructuring charges, USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014
Data center services | Exit activities and Restructuring charges	'
Restructuring Cost and Reserve [Line Items]	'
Initial exit activity charges	$1.10

OPERATING_SEGMENTS_Summary_of_

OPERATING SEGMENTS - Summary of operating results for business segments - (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment profit:	'	'	'	'
Exit activities, restructuring and impairments	$1,561	$683	$2,945	$932
Loss from operations	-4,514	-1,099	-9,051	-279
Non-operating expenses	-7,188	-2,953	-13,780	-5,505
Loss before income taxes and equity in (earnings) of equity-method investment	-11,702	-4,052	-22,831	-5,784
Operating segments	'	'	'	'
Revenues:	'	'	'	'
Total revenues	84,068	69,983	166,029	139,683
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	36,562	32,653	72,323	65,524
Segment profit:	'	'	'	'
Total segment profit	47,506	37,330	93,706	74,159
Operating segments | Data center services	'	'	'	'
Revenues:	'	'	'	'
Total revenues	61,395	45,580	119,678	89,973
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	26,563	22,643	52,454	45,290
Segment profit:	'	'	'	'
Total segment profit	34,832	22,937	67,224	44,683
Operating segments | IP services	'	'	'	'
Revenues:	'	'	'	'
Total revenues	22,673	24,403	46,351	49,710
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	9,999	10,010	19,869	20,234
Segment profit:	'	'	'	'
Total segment profit	12,674	14,393	26,482	29,476
Segment reconciling items	'	'	'	'
Segment profit:	'	'	'	'
Exit activities, restructuring and impairments	1,561	683	2,945	932
Other operating expenses, including direct costs of customer support, depreciation and amortization	50,459	37,746	99,812	73,506
Loss from operations	-4,514	-1,099	-9,051	-279
Non-operating expenses	7,188	2,953	13,780	5,505
Loss before income taxes and equity in (earnings) of equity-method investment	($11,702)	($4,052)	($22,831)	($5,784)

OPERATING_SEGMENTS_Detail_Text

OPERATING SEGMENTS (Detail Textuals)	6 Months Ended
	Jun. 30, 2014
	Segment
Segment Reporting [Abstract]	'
Number of operating segments	2

NET_LOSS_PER_SHARE_Details

NET LOSS PER SHARE (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Net loss attributable to common stock	($11,185)	($3,702)	($21,861)	($5,345)
Weighted average shares outstanding, basic and diluted (in shares)	51,045	50,856	51,125	50,965
Net loss per share, basic and diluted (in dollars per share)	($0.22)	($0.07)	($0.43)	($0.10)
Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans (in shares)	7,382	7,007	7,382	7,007