Exhibit 99.1
● | Highest annual and quarterly adjusted EBITDA1 and adjusted EBITDA margin1 in the history of the company |
● | 2014 revenue of $335.0 million, fourth quarter revenue of $84.3 million |
● | 2014 segment margin2 of 56.7%, fourth quarter segment margin of 57.9% |
● | 2014 adjusted EBITDA of $78.7 million, fourth quarter adjusted EBITDA of $22.7 million |
● | 2014 adjusted EBITDA margin of 23.5%, fourth quarter adjusted EBITDA margin of 27.0% |
“We are pleased to deliver a strong finish to 2014 having met our fourth quarter revenue guidance and exceeded the high-end range of our adjusted EBITDA guidance. The execution of our strategic transformation to an industry leading Internet infrastructure services provider is reflected in full year revenue and adjusted EBITDA growth of 18% and 36%, respectively,” said Eric Cooney, President and Chief Executive Officer of Internap. “With some significant churn events behind us, most notably the exit from 111 8th Avenue data center, we enter 2015 with a solid foundation for profitable growth from our integrated platform of high-performance hybrid Internet infrastructure services. Encouraged by our positive momentum and the stage of our business transformation, we are providing full-year 2015 revenue, adjusted EBITDA and capital expenditure guidance.”
Fourth Quarter | Full Year | |||||||||||||||||||||||
2014 | 2013 | Growth | 2014 | 2013 | Growth | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Data center services | $ | 61,305 | $ | 49,686 | 23% | $ | 242,623 | $ | 185,147 | 31% | ||||||||||||||
IP services | 22,958 | 24,401 | -6% | $ | 92,336 | 98,195 | -6% | |||||||||||||||||
Total Revenues | $ | 84,263 | $ | 74,087 | 14% | $ | 334,959 | $ | 283,342 | 18% | ||||||||||||||
Operating Expenses | $ | 86,517 | $ | 79,942 | 8% | $ | 349,298 | $ | 290,829 | 20% | ||||||||||||||
GAAP Net Loss | $ | (8,257 | ) | $ | (10,450 | ) | 21% | $ | (39,494 | ) | $ | (19,830 | ) | -99% | ||||||||||
Normalized Net Loss2 | $ | (5,232 | ) | $ | (4,378 | ) | -20% | $ | (27,707 | ) | $ | (7,463 | ) | -271% | ||||||||||
Segment Profit1 | $ | 48,788 | $ | 40,394 | 21% | $ | 190,013 | $ | 151,330 | 26% | ||||||||||||||
Segment Profit Margin | 57.9 | % | 54.5 | % | 340 BPS | 56.7 | % | 53.4 | % | 330 BPS | ||||||||||||||
Adjusted EBITDA | $ | 22,712 | $ | 15,651 | 45% | $ | 78,729 | $ | 58,037 | 36% | ||||||||||||||
Adjusted EBITDA Margin | 27.0 | % | 21.1 | % | 590 BPS | 23.5 | % | 20.5 | % | 300 BPS | ||||||||||||||
1 |
● | Revenue for the full-year 2014 increased 18% to $335.0 million compared with $283.3 million in 2013. The increase in annual revenue was due to growth in our data center services segment, which includes $43.2 million of revenue attributable to iWeb, which we acquired in November 2013. Revenue for the fourth quarter of 2014 was $84.3 million, an increase of 14% year-over-year and flat compared with the third quarter of 2014. |
● | Data center services revenue for the full-year 2014 increased 31% to $242.6 million. Fourth quarter data center services revenue was $61.3 million, an increase of 23% compared with the fourth quarter of 2013 and a decrease of 1% from the third quarter of 2014. The year-over-year revenue increase was predominantly attributable to increased sales of core data center services including revenue attributable to iWeb. Sequentially, previously disclosed churn from our New York Metro migration and decreased sales in our partner data centers offset the increase in core data center services. |
● | IP services revenue for the full-year 2014 decreased 6% to $92.3 million. Fourth quarter IP services revenue was $23.0 million, a decrease of 6% compared with the fourth quarter of 2013 and flat from the third quarter of 2014. The year-over-year revenue decrease was driven by per unit declines in IP pricing and the loss of legacy contracts at higher effective prices, partially offset by an increase in overall traffic. Sequentially, traffic growth and non-recurring revenue offset per unit price declines in IP. |
● | GAAP net loss was $(39.5) million, or $(0.77) per share for the full-year 2014 compared with $(19.8) million, or $(0.39) per share in 2013. GAAP net loss in the fourth quarter was $(8.3) million, or $(0.16) per share. |
● | Normalized net loss was $(27.7) million, or $(0.54) per share for the full-year 2014. Normalized net loss for the full-year 2013 was $(7.5) million, or $(0.15) per share. Normalized net loss in the fourth quarter was $(5.2) million, or $(0.10) per share. |
● | Segment profit in 2014 was $190.0 million, an increase of 26% year-over-year. Segment profit in the fourth quarter increased 21% compared with the fourth quarter of 2013 and 3% sequentially to $48.8 million. Annual segment margin was 56.7% in 2014, an increase of 330 basis points over 2013. Fourth quarter segment margin was 57.9%, an increase of 340 basis points year-over-year and 180 basis points compared with the third quarter of 2014. We achieved the highest annual and quarterly segment profit and segment margin levels in our history in 2014 and fourth quarter 2014. |
● | Annual data center services segment profit increased 47% to $136.5 million. Fourth quarter data center services segment profit increased 38% year-over-year and 4% sequentially to $35.3 million. Data center services segment profit margin was 56.2% in 2014 and 57.6% in the fourth quarter of 2014, representing year-over-year increases of 620 basis points and 610 basis points, respectively. An increasing proportion of higher-margin services, specifically colocation sold in company-controlled data centers, hosting and cloud services and the contribution from iWeb, drove data center services segment profit and margin higher. |
● | IP services segment profit for the full-year 2014 decreased 9% to $53.5 million. Fourth quarter IP services segment profit was $13.5 million, a 9% decrease compared with the fourth quarter of 2013 and a 1% decrease from the third quarter of 2014. IP services segment profit margin was 58.0% in 2014 and 58.7% in the fourth quarter of 2014, representing year-over-year declines of 180 basis points and 200 basis points, respectively. Decreased IP services revenue more than offset lower costs, driving declines in IP services segment profit and segment margin. |
● | Full-year 2014 adjusted EBITDA increased 36% year-over-year to $78.7 million. Fourth quarter 2014 adjusted EBITDA increased 45% year-over-year and 15% sequentially to $22.7 million. Adjusted EBITDA margin was 23.5% in 2014 and 27.0% in the fourth quarter of 2014, representing year-over-year increases of 300 basis points and 590 basis points, respectively. Sequentially, fourth quarter adjusted EBITDA margin increased 370 basis points. The year-over-year and sequential increases in adjusted EBITDA were attributable to increased segment profit in our data center services segment. The sequential adjusted EBITDA margin improvement was also driven by lower cash operating expenses. |
2 |
● | Cash and cash equivalents totaled $20.1 million at December 31, 2014. Total debt was $359.0 million, net of discount, at the end of the quarter, including $60.1 million in capital lease obligations. |
● | Cash generated from operations for the 12 and three months ended December 31, 2014 were $53.2 million and $17.0 million, respectively. Capital expenditures over the same periods were $77.4 million and $25.1 million, respectively. |
● | Revenue $339 million - $353 million |
● | Adjusted EBITDA $89 million - $95 million |
● | Capital Expenditures $70 million - $80 million |
● | We had 12,286 customers at December 31, 2014. |
● | Internap expanded our OpenStack-powered AgileCLOUD footprint to Amsterdam and the New York metro market. We currently have four OpenStack public cloud locations, providing developers and enterprise customers with one of the most robust, feature-rich OpenStack public cloud platforms. |
● | Internap announced the addition of powerful OpenStack management capabilities in AgileCLOUD via an integrated OpenStack Horizon dashboard. We now provide a full range of cloud and infrastructure management options that give customers the flexibility to meet their specific control requirements. |
1 | Adjusted EBITDA, adjusted EBITDA margin and normalized net loss are non-GAAP financial measures which we define in an attachment to this press release entitled “Non-GAAP (Adjusted) Financial Measures.” Reconciliations between GAAP information and non-GAAP information related to adjusted EBITDA and normalized net loss are contained in the tables entitled “Reconciliation of Loss from Operations to Adjusted EBITDA,” and “Reconciliation of Net Loss and Basic and Diluted Net Loss Per Share to Normalized Net Loss and Basic and Diluted Normalized Net Loss Per Share” in the attachment. |
2 | Segment margin and segment profit are non-GAAP financial measures which we define in an attachment to this press release entitled “Non-GAAP (Adjusted) Financial Measures.” Reconciliations between GAAP and non-GAAP information related to segment profit and segment margin are contained in the table entitled “Segment Profit and Segment Margin” in the attachment. |
3 |
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include statements related to our ability to drive profitable growth and our expectations for full-year 2015 revenue, adjusted EBITDA and capital expenditures. Our expectations for full-year 2015 revenue, adjusted EBITDA and capital expenditures are based on certain assumptions, including anticipated new product launches, leveraging of multiple routes to market and expanded brand awareness for high-performance Internet infrastructure services. These assumptions may prove to be inaccurate in the future. Because such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, there are important factors that could cause Internap’s actual results to differ materially from those in the forward-looking statements. These factors include our ability to execute on our business strategy; the robustness of the IT infrastructure services market; our ability to achieve or sustain profitability; our ability to expand margins and drive higher returns on investment; our ability to complete expansion of company-controlled data centers within the expected timeframe; our ability to sell into new data center space; the actual performance of our IT infrastructure services; our ability to maintain current customers and obtain new ones, whether in a cost-effective manner or at all; our ability to correctly forecast capital needs, demand planning and space utilization; our ability to respond successfully to technological change and the resulting competition; the availability of services from Internet network service providers or network service providers providing network access loops and local loops on favorable terms, or at all; failure of third party suppliers to deliver their products and services on favorable terms, or at all; failures in our network operations centers, data centers, network access points or computer systems; our ability to provide or improve Internet infrastructure services to our customers; and our ability to protect our intellectual property, as well as other factors discussed in our filings with the Securities and Exchange Commission. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to update, amend or clarify any forward-looking statement for any reason.
Press Contact: | Investor Contact: |
Mariah Torpey | Michael Nelson |
(781) 418-2404 | (404) 302-9700 |
internap@daviesmurphy.com | ir@internap.com |
4 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Data center services | $ | 61,305 | $ | 49,686 | $ | 242,623 | $ | 185,147 | ||||||||
Internet protocol (IP) services | 22,958 | 24,401 | 92,336 | 98,195 | ||||||||||||
Total revenues | 84,263 | 74,087 | 334,959 | 283,342 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Direct costs of network, sales and services, exclusive of depreciation and amortization, shown below: | ||||||||||||||||
Data center services | 25,989 | 24,103 | 106,159 | 92,564 | ||||||||||||
IP services | 9,486 | 9,590 | 38,787 | 39,448 | ||||||||||||
Direct costs of customer support | 9,211 | 7,635 | 36,804 | 29,687 | ||||||||||||
Direct costs of amortization of acquired and developed technologies | 1,383 | 1,324 | 5,918 | 4,967 | ||||||||||||
Sales and marketing | 8,907 | 8,191 | 37,845 | 31,800 | ||||||||||||
General and administrative | 9,465 | 14,780 | 43,902 | 42,759 | ||||||||||||
Depreciation and amortization | 20,478 | 14,105 | 75,251 | 48,181 | ||||||||||||
Loss on disposal of property and equipment, net | 80 | 5 | 112 | 9 | ||||||||||||
Exit activities, restructuring and impairments | 1,518 | 209 | 4,520 | 1,414 | ||||||||||||
Total operating costs and expenses | 86,517 | 79,942 | 349,298 | 290,829 | ||||||||||||
Loss from operations | (2,254 | ) | (5,855 | ) | (14,339 | ) | (7,487 | ) | ||||||||
Non-operating expenses: | ||||||||||||||||
Interest expense | 6,747 | 4,022 | 26,742 | 11,346 | ||||||||||||
Loss on extinguishment of debt | - | 881 | - | 881 | ||||||||||||
Other, net | (303 | ) | (65 | ) | 33 | 614 | ||||||||||
Total non-operating expenses | 6,444 | 4,838 | 26,775 | 12,841 | ||||||||||||
Loss before income taxes and equity in (earnings) of equity-method investment | (8,698 | ) | (10,693 | ) | (41,114 | ) | (20,328 | ) | ||||||||
Benefit for income taxes | (379 | ) | (187 | ) | (1,361 | ) | (285 | ) | ||||||||
Equity in (earnings) of equity-method investment, net of taxes | (62 | ) | (56 | ) | (259 | ) | (213 | ) | ||||||||
Net loss | $ | (8,257 | ) | $ | (10,450 | ) | $ | (39,494 | ) | $ | (19,830 | ) | ||||
Basic and diluted net loss per share | $ | (0.16 | ) | $ | (0.21 | ) | $ | (0.77 | ) | $ | (0.39 | ) | ||||
Weighted average shares outstanding used in computing net loss per share: | ||||||||||||||||
Basic and diluted | 51,159 | 50,898 | 51,237 | 51,135 |
5 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,084 | $ | 35,018 | ||||
Accounts receivable, net of allowance for doubtful accounts of $2,121 and $1,995, respectively | 19,606 | 23,927 | ||||||
Deferred tax asset | 633 | 371 | ||||||
Prepaid expenses and other assets | 12,276 | 22,533 | ||||||
Total current assets | 52,599 | 81,849 | ||||||
Property and equipment, net | 342,145 | 331,963 | ||||||
Investment in joint venture | 2,622 | 2,602 | ||||||
Intangible assets, net | 52,545 | 57,699 | ||||||
Goodwill | 130,313 | 130,387 | ||||||
Deposits and other assets | 9,923 | 7,999 | ||||||
Deferred tax asset | 1,637 | 1,742 | ||||||
Total assets | $ | 591,784 | $ | 614,241 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 30,589 | $ | 29,774 | ||||
Accrued liabilities | 13,120 | 13,549 | ||||||
Deferred revenues | 7,345 | 6,729 | ||||||
Capital lease obligations | 7,366 | 5,489 | ||||||
Term loan, less discount of $1,463 and $1,387, respectively | 1,537 | 1,613 | ||||||
Exit activities and restructuring liability | 1,809 | 2,286 | ||||||
Other current liabilities | 1,590 | 2,493 | ||||||
Total current liabilities | 63,356 | 61,933 | ||||||
Deferred revenues | 3,544 | 3,804 | ||||||
Capital lease obligations | 52,686 | 49,800 | ||||||
Revolving credit facility | 10,000 | - | ||||||
Term loan, less discount of $6,543 and $8,006 respectively | 287,457 | 288,994 | ||||||
Exit activities and restructuring liability | 2,701 | 1,877 | ||||||
Deferred rent | 10,583 | 14,617 | ||||||
Deferred tax liability | 7,292 | 8,591 | ||||||
Other long-term liabilities | 3,829 | 2,415 | ||||||
Total liabilities | 441,448 | 432,031 | ||||||
Commitments and contingencies | ||||||||
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; 54,410 and 54,023 shares outstanding, respectively | 54 | 54 | ||||||
Additional paid-in capital | 1,262,402 | 1,253,106 | ||||||
Treasury stock, at cost; 621 and 461 shares, respectively | (4,683 | ) | (3,474 | ) | ||||
Accumulated deficit | (1,105,514 | ) | (1,066,020 | ) | ||||
Accumulated items of other comprehensive loss | (1,923 | ) | (1,456 | ) | ||||
Total stockholders’ equity | 150,336 | 182,210 | ||||||
Total liabilities and stockholders’ equity | $ | 591,784 | $ | 614,241 |
6 |
INTERNAP CORPORATION | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net loss | $ | (8,257 | ) | $ | (10,450 | ) | $ | (39,494 | ) | $ | (19,830 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 21,861 | 15,430 | 81,169 | 53,148 | ||||||||||||
Impairment of property and equipment | - | - | 537 | 520 | ||||||||||||
Amortization of debt discount and issuance costs | 494 | 449 | 1,934 | 631 | ||||||||||||
Stock-based compensation expense, net of capitalized amount | 1,507 | 1,653 | 7,182 | 6,743 | ||||||||||||
Equity in (earnings) of equity-method investment | (62 | ) | (56 | ) | (259 | ) | (213 | ) | ||||||||
Provision for doubtful accounts | 495 | 784 | 1,306 | 1,861 | ||||||||||||
Non-cash portion of loss on extinguishment of debt | - | 841 | - | 841 | ||||||||||||
Non-cash change in capital lease obligations | (325 | ) | (22 | ) | (412 | ) | 99 | |||||||||
Non-cash change in exit activities and restructuring liability | 1,595 | 264 | 4,591 | 1,185 | ||||||||||||
Non-cash change in deferred rent | (549 | ) | (536 | ) | (2,577 | ) | (1,907 | ) | ||||||||
Deferred taxes | (329 | ) | (292 | ) | (1,555 | ) | (67 | ) | ||||||||
Other, net | (5 | ) | (248 | ) | 193 | 84 | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (275 | ) | (2,734 | ) | 2,923 | (5,777 | ) | |||||||||
Prepaid expenses, deposits and other assets | 4,919 | (220 | ) | 1,839 | (218 | ) | ||||||||||
Accounts payable | 3,114 | 6,107 | 529 | 3,992 | ||||||||||||
Accrued and other liabilities | (4,381 | ) | (4,039 | ) | 413 | (5,062 | ) | |||||||||
Deferred revenues | 399 | 837 | 498 | 1,149 | ||||||||||||
Exit activities and restructuring liability | (1,949 | ) | (715 | ) | (4,245 | ) | (2,895 | ) | ||||||||
Asset retirement obligation | (1,229 | ) | - | (1,319 | ) | - | ||||||||||
Other liabilities | (5 | ) | 12 | (5 | ) | (601 | ) | |||||||||
Net cash flows provided by operating activities | 17,018 | 7,065 | 53,248 | 33,683 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Purchases of property and equipment | (26,051 | ) | (28,208 | ) | (77,363 | ) | (62,798 | ) | ||||||||
Additions to acquired technology | (1,096 | ) | (325 | ) | (3,100 | ) | (801 | ) | ||||||||
Proceeds from sale-leaseback transactions | 2,059 | - | 4,662 | - | ||||||||||||
Acquisition, net of cash received | - | (144,487 | ) | 74 | (144,487 | ) | ||||||||||
Net cash flows used in investing activities | (25,088 | ) | (173,020 | ) | (75,727 | ) | (208,086 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from credit agreements | 5,000 | 300,000 | 10,000 | 320,000 | ||||||||||||
Principal payments on credit agreements | (750 | ) | (113,375 | ) | (3,000 | ) | (116,000 | ) | ||||||||
Payment of debt issuance costs | - | (12,415 | ) | - | (12,415 | ) | ||||||||||
(Payment) return of deposit collateral on credit agreement | - | (6,461 | ) | 6,461 | (6,461 | ) | ||||||||||
Payments on capital lease obligations | (1,709 | ) | (1,180 | ) | (5,921 | ) | (4,655 | ) | ||||||||
Proceeds from exercise of stock options | 801 | 162 | 1,774 | 2,138 | ||||||||||||
Tax withholdings related to net share settlements of restricted stock awards | (465 | ) | (187 | ) | (1,209 | ) | (1,630 | ) | ||||||||
Other, net | (46 | ) | (43 | ) | (181 | ) | (167 | ) | ||||||||
Net cash flows provided by by financing activities | 2,831 | 166,501 | 7,924 | 180,810 | ||||||||||||
Effect of exchange rates on cash and cash equivalents | (170 | ) | 31 | (379 | ) | 58 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (5,409 | ) | 577 | (14,934 | ) | 6,465 | ||||||||||
Cash and cash equivalents at beginning of period | 25,493 | 34,441 | 35,018 | 28,553 | ||||||||||||
Cash and cash equivalents at end of period | $ | 20,084 | $ | 35,018 | $ | 20,084 | $ | 35,018 |
7 |
NON-GAAP (ADJUSTED) FINANCIAL MEASURES
● | Adjusted EBITDA is loss from operations plus depreciation and amortization, loss (gain) on disposals of property and equipment, exit activities, restructuring and impairments, stock-based compensation and acquisition costs. |
● | Adjusted EBITDA margin is adjusted EBITDA as a percentage of revenues. |
● | Normalized net loss is net loss plus exit activities, restructuring and impairments, stock-based compensation and acquisition costs. |
● | Normalized diluted shares outstanding are diluted shares of common stock outstanding used in GAAP net loss per share calculations, excluding the dilutive effect of stock-based compensation using the treasury stock method. |
● | Normalized net loss per share is normalized net loss divided by basic and normalized diluted shares outstanding. |
● | Segment profit is segment revenues less direct costs of network, sales and services, exclusive of depreciation and amortization for the segment, as presented in the notes to our consolidated financial statements. Segment profit 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. |
● | Segment margin is segment profit as a percentage of segment revenues. |
8 |
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
● | EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, income taxes, depreciation and amortization, which can vary substantially from company-to-company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired; and |
● | investors commonly adjust EBITDA information to eliminate the effect of disposals of property and equipment, impairments, restructuring and stock-based compensation which vary widely from company-to-company and impair comparability. |
● | as a measure of operating performance to assist in comparing performance from period-to-period on a consistent basis; |
● | as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; and |
● | in communications with the board of directors, analysts and investors concerning our financial performance. |
9 |
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
10 |
RECONCILIATION OF LOSS FROM OPERATIONS TO ADJUSTED EBITDA
Three Months Ended | ||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||
Loss from operations (GAAP) | $ | (2,254 | ) | $ | (3,035 | ) | $ | (5,855 | ) | |||
Depreciation and amortization, including amortization of acquired and developed technologies | 21,861 | 20,915 | 15,429 | |||||||||
Loss on disposal of property and equipment, net | 80 | - | 5 | |||||||||
Exit activities, restructuring and impairments | 1,518 | 56 | 209 | |||||||||
Stock-based compensation | 1,507 | 1,778 | 1,653 | |||||||||
Acquisition costs | - | - | 4,210 | |||||||||
Adjusted EBITDA (non-GAAP) | $ | 22,712 | $ | 19,714 | $ | 15,651 |
11 |
RECONCILIATION OF NET LOSS AND BASIC AND DILUTED
NET LOSS PER SHARE TO NORMALIZED NET LOSS AND
BASIC AND DILUTED NORMALIZED NET LOSS PER SHARE
Three Months Ended | ||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||
Net loss (GAAP) | $ | (8,257 | ) | $ | (9,377 | ) | $ | (10,450 | ) | |||
Exit activities, restructuring and impairments | 1,518 | 56 | 209 | |||||||||
Stock-based compensation | 1,507 | 1,778 | 1,653 | |||||||||
Acquisition costs | - | - | 4,210 | |||||||||
Normalized net loss (non-GAAP) | (5,232 | ) | (7,543 | ) | (4,378 | ) | ||||||
Normalized net income allocable to participating securities (non-GAAP) | - | - | - | |||||||||
Normalized net loss available to common stockholders (non-GAAP) | $ | (5,232 | ) | $ | (7,543 | ) | $ | (4,378 | ) | |||
Participating securities (GAAP) | 1,066 | 1,083 | 1,049 | |||||||||
Weighted average shares outstanding used in per share calculation: | ||||||||||||
Basic and diluted (GAAP) | 51,159 | 51,063 | 50,898 | |||||||||
Add potentially dilutive securities | - | - | - | |||||||||
Less dilutive effect of stock-based compensation under the treasury stock method | - | - | - | |||||||||
Normalized diluted shares (non-GAAP) | 51,159 | 51,063 | 50,898 | |||||||||
Loss per share (GAAP): | ||||||||||||
Basic and diluted | $ | (0.16 | ) | $ | (0.18 | ) | $ | 0.21 | ||||
Normalized net loss per share (non-GAAP): | ||||||||||||
Basic and diluted | $ | (0.10 | ) | $ | (0.15 | ) | $ | (0.09 | ) |
12 |
SEGMENT PROFIT AND SEGMENT MARGIN
Three Months Ended | ||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2013 | ||||||||||
Revenues: | ||||||||||||
Data center services | $ | 61,305 | $ | 61,640 | $ | 49,686 | ||||||
IP services | 22,958 | 23,027 | 24,401 | |||||||||
Total | 84,263 | 84,667 | 74,087 | |||||||||
Direct cost of network, sales and services, exclusive of depreciation and amortization: | ||||||||||||
Data center services | 25,989 | 27,716 | 24,103 | |||||||||
IP services | 9,486 | 9,432 | 9,590 | |||||||||
Total | 35,475 | 37,148 | 33,693 | |||||||||
Segment Profit: | ||||||||||||
Data center services | 35,316 | 33,924 | 25,583 | |||||||||
IP services | 13,472 | 13,595 | 14,811 | |||||||||
Total | $ | 48,788 | $ | 47,519 | $ | 40,394 | ||||||
Segment Margin: | ||||||||||||
Data center services | 57.6 | % | 55.0 | % | 51.5 | % | ||||||
IP services | 58.7 | % | 59.0 | % | 60.7 | % | ||||||
Total | 57.9 | % | 56.1 | % | 54.5 | % |
13 |