Internap (INAPQ) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
Document and Entity Information Abstract
Entity Registrant Name	Internap Corp
Entity Central Index Key	1,056,386
Trading Symbol	inap
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Common Stock Shares Outstanding		82,122,239
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Total revenues	$ 72,133	$ 75,924
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of customer support	7,264	8,804
Sales, general and administrative	16,564	18,930
Depreciation and amortization	17,745	19,113
Exit activities, restructuring and impairments	1,023	201
Total operating costs and expenses	71,641	78,125
Income (loss) from operations	492	(2,201)
Non-operating expenses:
Interest expense	8,137	6,985
Loss on foreign currency, net	97	433
Other, net		(77)
Total non-operating expenses	8,234	7,341
Loss before income taxes and equity in earnings of equity-method investment	(7,742)	(9,542)
Provision for income taxes	518	138
Equity in earnings of equity-method investment, net of taxes	(30)	(36)
Net loss	(8,230)	(9,644)
Other comprehensive income:
Foreign currency translation adjustment	73	108
Unrealized gain on foreign currency contracts	85	638
Unrealized gain on interest rate swap		147
Total other comprehensive income	158	893
Comprehensive loss	$ (8,072)	$ (8,751)
Basic and diluted net loss per share (in dollars per share)	$ (0.13)	$ (0.19)
Weighted average shares outstanding used in computing basic and diluted net loss per share: (in shares)	64,351	51,774
Operating segments
Revenues:
Total revenues	$ 72,133	$ 75,924
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	43,114	47,769
Operating segments | INAP COLO
Revenues:
Total revenues	53,339	55,881
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	24,806	26,333
Operating segments | INAP CLOUD
Revenues:
Total revenues	18,794	20,043
Direct costs of sales and services, exclusive of depreciation and amortization, shown below:
Direct costs of sales and services, exclusive of depreciation and amortization	$ 4,239	$ 4,744

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,174	$ 10,389
Accounts receivable, net of allowance for doubtful accounts of $1,301 and $1,246, respectively	15,654	18,044
Prepaid expenses and other assets	10,311	10,055
Total current assets	35,139	38,488
Property and equipment, net	291,583	302,680
Investment in joint venture	3,099	3,002
Intangible assets, net	27,138	27,978
Goodwill	50,209	50,209
Deposits and other assets	7,940	8,258
Total assets	415,108	430,615
Current liabilities:
Accounts payable	18,003	20,875
Accrued liabilities	10,445	10,603
Deferred revenues	5,417	5,746
Capital lease obligations	10,164	10,030
Term loan, less discount and prepaid costs of $2,037 and $2,243, respectively	963	757
Exit activities and restructuring liability	2,922	3,177
Other current liabilities	3,089	3,171
Total current liabilities	51,003	54,359
Deferred revenues	4,964	5,144
Capital lease obligations	41,613	43,876
Revolving credit facility	35,500	35,500
Term loan, less discount and prepaid costs of $6,605 and $4,579, respectively	241,398	283,421
Exit activities and restructuring liability	1,374	1,526
Deferred rent	4,188	4,642
Deferred tax liability	1,473	1,513
Other long-term liabilities	4,293	4,358
Total liabilities	385,806	434,339
Commitments and contingencies (note 9)
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; 82,156 and 57,799 shares outstanding, respectively	83	58
Additional paid-in capital	1,324,204	1,283,332
Treasury stock, at cost, 1,143 and 1,073 shares, respectively	(7,072)	(6,923)
Accumulated deficit	(1,286,579)	(1,278,699)
Accumulated items of other comprehensive loss	(1,334)	(1,492)
Total stockholders' equity	29,302	(3,724)
Total liabilities and stockholders' equity	$ 415,108	$ 430,615

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2017	Mar. 31, 2016
Allowance for doubtful accounts receivable (in dollars)	$ 1,301	$ 1,246
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	120,000	120,000
Common stock, shares outstanding	82,156	57,799
Treasury stock, shares	1,143	1,073
Term loan current
Term loan, discount (in dollars)	$ 2,037	$ 2,243
Term loan noncurrent
Term loan, discount (in dollars)	$ 6,605	$ 4,579

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net loss	$ (8,230)	$ (9,644)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	17,745	19,113
Amortization of debt discount and issuance costs	715	522
Stock-based compensation expense, net of capitalized amount	598	1,922
Equity in earnings of equity-method investment	(30)	(36)
Provision for doubtful accounts	301	341
Non-cash change in capital lease obligations	71	487
Non-cash change in exit activities and restructuring liability	980	347
Non-cash change in deferred rent	(423)	(484)
Deferred taxes	254	77
Payment of debt lender fees	(2,583)
Other, net	(96)	202
Changes in operating assets and liabilities:
Accounts receivable	2,096	537
Prepaid expenses, deposits and other assets	123	1,946
Accounts payable	(2,247)	(1,815)
Accrued and other liabilities	(180)	(1,903)
Deferred revenues	(510)	191
Exit activities and restructuring liability	(1,386)	(804)
Asset retirement obligation	52	(174)
Other liabilities	14	(43)
Net cash flows provided by operating activities	7,264	10,782
Cash Flows from Investing Activities:
Purchases of property and equipment	(5,789)	(12,282)
Additions to acquired and developed technology	(200)	(399)
Net cash flows used in investing activities	(5,989)	(12,681)
Cash Flows from Financing Activities:
Proceeds from credit agreements		1,500
Proceeds from stock issuance	40,282
Principal payments on credit agreements	(39,997)	(750)
Payments on capital lease obligations	(2,491)	(2,359)
Proceeds from exercise of stock options	7
Acquisition of common stock for income tax withholdings	(149)	(216)
Other, net	(157)	(76)
Net cash flows used in financing activities	(2,505)	(1,901)
Effect of exchange rates on cash and cash equivalents	15	(74)
Net decrease in cash and cash equivalents	(1,215)	(3,874)
Cash and cash equivalents at beginning of period	10,389	17,772
Cash and cash equivalents at end of period	9,174	13,898
Supplemental disclosure of cash flow information:
Cash paid for interest	7,336	6,540
Non-cash acquisition of property and equipment under capital leases	290	4,056
Additions to property and equipment included in accounts payable	$ 1,247	$ 6,025

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Internap Corporation (“we,” “us” “our” “INAP” or “the Company”) provides high-performance Internet infrastructure services across North America, Europe and the Asia-Pacific region. 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, 2017 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2016 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, 2016 filed with the Securities and Exchange Commission (“SEC”). 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, 2017 are not necessarily indicative of the results that may be expected for any future periods.

CHANGE IN ORGANIZATIONAL STRUCT

CHANGE IN ORGANIZATIONAL STRUCTURE	3 Months Ended
	Mar. 31, 2017
Change In Organizational Structure And Realignment Of Expenses [Abstract]
CHANGE IN ORGANIZATIONAL STRUCTURE AND REALIGNMENT OF EXPENSES	2. CHANGE IN ORGANIZATIONAL STRUCTURE During the three months ended March 31, 2017, we changed our organizational structure in an effort to create more effective and efficient operations and to improve customer and product focus. In that regard, we revised the information that our chief executive officer, who is also our Chief Operating Decision Maker (“CODM”), regularly reviews for purposes of allocating resources and assessing performance. As a result, we report our financial performance based on our new segments, described in note 10 “Operating Segments.” We have reclassified prior period amounts to conform to the current presentation. The prior year reclassifications, which did not affect total revenues, total direct costs of sales and services, operating loss or net loss, are summarized as follows (in thousands): Three Months Ended March 31, 2016 As Previously Reclassification As Reported Revenues: Data center and network services $ 50,872 $ (50,872 ) $ — Cloud and hosting services 25,052 (25,052 ) — INAP COLO — 55,881 55,881 INAP CLOUD — 20,043 20,043 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 24,373 (24,373 ) — Cloud and hosting services 6,704 (6,704 ) — INAP COLO — 26,333 26,333 INAP CLOUD — 4,744 4,744

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	3. 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, 2017: Foreign currency contracts (note 8) $ — $ 77 $ — $ 77 Asset retirement obligations (1) — — 2,861 2,861 December 31, 2016: Foreign currency contracts (note 8) — 195 — 195 Asset retirement obligations (1) — — 2,810 2,810 (1) The following table provides a summary of changes in our Level 3 asset retirement obligations for the three months ended March 31, 2017 (in thousands): Balance, January 1, 2017 $ 2,810 Accretion 51 Balance, March 31, 2017 $ 2,861 The fair values of our other Level 3 debt liabilities, estimated using a discounted cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements, are as follows (in thousands): March 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Term loan $ 251,003 $ 251,317 $ 291,000 $ 267,700 Revolving credit facility 35,500 35,544 35,500 32,600

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	4. GOODWILL During the three months ended March 31, 2017, we changed our operating segments, as discussed in note 10 “Operating Segments,” and, subsequently, our reporting units. We now have six reporting units: IP services, IP products, data center services, managed hosting, cloud and Ubersmith. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to and after the reallocation and determined that no impairment existed. During the three months ended March 31, 2017, we re-allocated goodwill as follows (in thousands): December 31, 2016 Re-allocations March 31, Operating segments: Data center and network services $ — $ $ — Cloud and hosting services 50,209 (50,209 ) — INAP COLO — 6,003 6,003 INAP CLOUD — 44,206 44,206 Total $ 50,209 $ — $ 50,209

DEBT

DEBT	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
DEBT	5. DEBT Third Amendment During the three months ended March 31, 2017, we entered into an amendment to our credit agreement (the “Third Amendment”), which, among other things, amended the credit agreement (i) to make each of the interest coverage ratio and leverage ratio covenants less restrictive and (ii) to decrease the maximum level of permitted capital expenditures. We paid a one-time aggregate fee of $2.6 million to the lenders for the Third Amendment, which we recorded as a debt discount of $2.2 million related to the term loan and prepaid debt issuance costs of $0.4 million related to the revolving credit facility. In addition, we paid $0.3 million in third-party fees, which we recorded as expense of $0.3 million related to the term loan and as prepaid debt issuance costs of less than $0.1 million related to the revolving credit facility. The Third Amendment was effective on February 28, 2017, upon the closing of the equity sale, which is described in note 6 below. The effectiveness of the covenant amendments was conditioned on the Company completing one or more equity offerings on or before June 30, 2017 for gross cash proceeds of not less than $40 million, and net cash proceeds of not less than $37 million and the application of the net cash proceeds to the repayment of indebtedness under the Credit Agreement. The Company paid a fee of approximately $0.9 million to the lenders on January 26, 2017 and paid an additional fee of $1.6 million on February 28, 2017. Absent the Third Amendment we may not have been able to comply with our covenants in the Credit Agreement.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
EQUITY	6. EQUITY Securities Purchase Agreement On February 22, 2017, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with certain purchasers (the “Purchasers”), pursuant to which the Company issued to the Purchasers an aggregate of 23,802,850 shares of the Company’s common stock at a price of US$1.81 per share, for the aggregate purchase price of US$43.1 million, which closed on February 27, 2017. The Securities Purchase Agreement contains customary representations, warranties, and covenants. Conditions for the Securities Purchase Agreement include: (i) the Company to use the funds of the sale of such common stock to repay indebtedness under the Credit Agreement, (ii) a 90-day “lock-up” period whereby the Company is restricted from certain sales of equity securities and (iii) the Company to pay certain transaction expenses of the Purchasers up to $100,000. The Company used $39.2 million of the proceeds to pay down our debt. Registration Rights Agreement On February 22, 2017, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchasers, which provides the Purchasers under the Securities Purchase Agreement the ability to request registration of such securities. Under the Registration Rights Agreement, the Company will use its best efforts to promptly, but in no event later than 15 days following the filing of the Company’s Annual Report on 10-K, file a registration statement on Form S-3 or such other form under the Securities Act of 1933 then available to the Company providing for the resale by the Purchasers of the registrable securities beneficially owned by such Purchasers. The Company must use its reasonable best efforts to cause the registration statement to be declared effective by the SEC as promptly as practicable following such filing, but in no event later than May 23, 2017. The registration statement was filed in March 2017 and declared effective during April 2017.

EXIT ACTIVITIES AND RESTRUCTURI

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES	7. EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES The following table displays the transactions and balances for exit activities and restructuring charges during the three months ended March 31, 2017 and 2016 (in thousands). Our real estate obligations are substantially related to our INAP COLO segment. Severance is spread across both reportable segments. Balance Initial Plan Cash Balance Activity for 2016 restructuring charge: Severance $ 1,911 $ — $ 566 $ (993 ) $ 1,484 Real estate obligations 933 — 378 (187 ) 1,124 Activity for 2015 restructuring charge: Real estate obligation 111 — (4 ) (7 ) 100 Service contracts 565 — 5 (49 ) 521 Activity for 2014 restructuring charge: Real estate obligation 1,183 — 34 (150 ) 1,067 $ 4,703 $ — $ 979 $ (1,386 ) $ 4,296 Balance Initial Plan Cash Balance March 31, 2016 Activity for 2016 restructuring charge: Real estate obligations — 105 — (9 ) 96 Service contracts — 42 — — 42 Activity for 2015 restructuring charge: Real estate obligation 164 — — (33 ) 131 Service contracts 843 — — (139 ) 704 Activity for 2014 restructuring charge: Real estate obligations 1,701 — 18 (144 ) 1,575 Activity for 2007 restructuring charge: Real estate obligation 1,170 — 181 (478 ) 873 $ 3,878 $ 147 $ 199 $ (803 ) $ 3,421

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	8. DERIVATIVES Foreign Currency Contracts We have foreign currency contracts to mitigate the risk of a portion of our Canadian compensation expense. These contracts will hedge foreign exchange variations between the United States and Canadian dollar and commit us to purchase a total of $12.0 million Canadian dollars at an exchange rate of 1.2855 through June 2017. As of March 31, 2017, and December 31, 2016, the fair value of our foreign currency contracts was less than $0.1 million and $0.2 million, respectively, included in “Other current liabilities” in the accompanying consolidated balance sheets. During the three months ended March 31, 2017 and 2016, the activity of the foreign currency contracts was as follows (in thousands): Three Months Ended March 31, 2017 2016 Unrealized gain, net of less than $0.1 million and $0.1 million income tax, respectively, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets $ 85 $ 638 Realized loss on effective portion, included as compensation expense in “Direct costs of customer support” and “Sales, general and administrative” in the accompanying consolidated statements of operations and comprehensive loss (80 ) (179 )

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND LITIGATION	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND LITIGATION	9. COMMITMENTS, CONTINGENCIES AND 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.

OPERATING SEGMENTS

OPERATING SEGMENTS	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
OPERATING SEGMENTS	10. OPERATING SEGMENTS The Company has two reportable segments: INAP COLO and INAP CLOUD. These segments are comprised of strategic businesses that are defined by the service offerings they provide. Each segment is managed as an operation with well-established strategic directions and performance requirements. Each segment is led by a separate General Manager who reports directly to the Company’s CODM. The CODM evaluates segment performance using business unit contribution which is defined as business unit revenues less direct costs of sales and services, customer support, and sales and marketing, exclusive of depreciation and amortization. We report our financial performance based on our two reportable segments, INAP COLO and INAP CLOUD, as follows: INAP COLO Our Colocation segment consists of colocation, network services and managed hosting. Colocation Colocation involves providing physical space within data centers and associated services such as power, interconnection, environmental controls, monitoring and security while allowing our customers to deploy and manage their servers, storage and other equipment in our secure data centers. Network Services Network services includes our patented Performance IP™ service, content delivery network services, IP routing hardware and software platform and Managed Internet Route Optimizer™ Controller. By intelligently routing traffic with redundant, high-speed connections over multiple, major Internet backbones, our network services provides high-performance and highly-reliable delivery of content, applications and communications to end users globally. Managed Hosting Managed Hosting consists of leasing dedicated servers as well as, storage and network equipment along with other associated hardware to our customers. We configure and administer the hardware and operating system, provide technical support, patch management, monitoring and updates. We offer managed hosting around the globe, including North America, Europe and the Asia-Pacific region. INAP CLOUD Cloud services involve providing compute and storage services via an integrated platform that includes servers, storage and network. We built our next generation cloud platform with our high-density colocation, Performance IP service and OpenStack, a leading open source technology for cloud services. In conjunction with our change in segments we changed the measure for determining the results of our segments to business unit contribution which includes the direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization. The following table provides segment results, with prior period amounts restated to conform to the current presentation (in thousands): Three Months Ended 2017 2016 Revenues: INAP COLO $ 53,339 $ 55,881 INAP CLOUD 18,794 20,043 Total revenues 72,133 75,924 Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization: INAP COLO 33,650 36,812 INAP CLOUD 9,464 10,957 Total direct costs of sales and services, customer support and sales and marketing 43,114 47,769 Business unit contribution: INAP COLO 19,689 19,069 INAP CLOUD 9,330 9,086 Total business unit contribution 29,019 28,155 Exit activities, restructuring and impairments 1,023 201 Other operating expenses, including depreciation and amortization 27,504 30,155 Income (loss) from operations 492 (2,201 ) Non-operating expenses 8,234 7,341 Loss before income taxes and equity in (earnings) of equity-method investment $ (7,742 ) $ (9,542 )

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
NET LOSS PER SHARE	11. 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 2017 2016 Net loss attributable to common stock $ (8,230 ) $ (9,644 ) Weighted average shares outstanding, basic and diluted 64,351 51,774 Net loss per share, basic and diluted $ (0.13 ) $ (0.19 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 5,539 7,598

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	12. RE CENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"), which simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. The guidance is effective for public companies’ annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We adopted ASU 2017-04 in the first quarter of 2017 and it did not impact our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which includes multiple amendments intended to simplify aspects of share-based payment accounting, and was effective for us at January 1, 2017. We have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. In connection with the adoption of the standard, the Company recorded a $10.8 million deferred tax asset and a corresponding $10.8 million valuation allowance. Accounting Pronouncements Issued But Not Yet Effective In August 2016, the FASB issued ASU No. 2016-15, which amends Accounting Standards Codification 230, to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact that adoption will have on the presentation of our consolidated statements of cash flow. In May 2014, the FASB issued ASU 2014-09, which provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The guidance is effective for periods beginning January 1, 2018. 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 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 impact of the standard on our ongoing financial reporting. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires all leases in excess of 12 months to be recognized on the balance sheet as lease assets and lease liabilities. For operating leases, a lessee is required to recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payment; recognize a single lease cost over the lease term generally on a straight-line basis; and classify all cash payments within operating activities on the cash flow statement. The guidance is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENT	13. SUBSEQUENT EVENT On April 6, 2017, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, the Guarantors party thereto, the Lenders party thereto, Jefferies Finance LLC, as Administrative Agent and Collateral Agent, Jefferies Finance LLC and PNC Capital Markets LLC, as Joint Lead Arrangers, PNC Bank, National Association, as Syndication Agent and as Issuing Bank, and Jefferies Finance LLC, as Documentation Agent, Sole Book Manager and as Swingline Lender. The Credit Agreement provides for a $300 million term loan facility and a $25 million revolving credit facility (which includes a $15 million letter of credit facility). In addition, the Company may request incremental term loans and/or incremental revolving loan commitments in an aggregate amount not to exceed $50 million. The proceeds of the term loan facility were used on April 6, 2017 to refinance the Company’s existing credit facility and to pay costs and expenses associated with the Credit Agreement.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NATURE OF OPERATIONS AND BASIS OF PRESENTATION Internap Corporation (“we,” “us” “our” “INAP” or “the Company”) provides high-performance Internet infrastructure services across North America, Europe and the Asia-Pacific region. 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, 2017 and our operating results and cash flows for the interim periods presented. The balance sheet at December 31, 2016 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, 2016 filed with the Securities and Exchange Commission (“SEC”). 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, 2017 are not necessarily indicative of the results that may be expected for any future periods.
RECENT ACCOUNTING PRONOUNCEMENTS	RE CENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"), which simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. The guidance is effective for public companies’ annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We adopted ASU 2017-04 in the first quarter of 2017 and it did not impact our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which includes multiple amendments intended to simplify aspects of share-based payment accounting, and was effective for us at January 1, 2017. We have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. In connection with the adoption of the standard, the Company recorded a $10.8 million deferred tax asset and a corresponding $10.8 million valuation allowance. Accounting Pronouncements Issued But Not Yet Effective In August 2016, the FASB issued ASU No. 2016-15, which amends Accounting Standards Codification 230, to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact that adoption will have on the presentation of our consolidated statements of cash flow. In May 2014, the FASB issued ASU 2014-09, which provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The guidance is effective for periods beginning January 1, 2018. 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 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 impact of the standard on our ongoing financial reporting. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires all leases in excess of 12 months to be recognized on the balance sheet as lease assets and lease liabilities. For operating leases, a lessee is required to recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payment; recognize a single lease cost over the lease term generally on a straight-line basis; and classify all cash payments within operating activities on the cash flow statement. The guidance is effective for annual and interim periods beginning after December 15, 2018. Earlier adoption is permitted. We are currently evaluating the impact that adoption will have on our consolidated financial statements and related disclosures.

CHANGE IN ORGANIZATIONAL STRU20

CHANGE IN ORGANIZATIONAL STRUCTURE (Tables)	3 Months Ended
	Mar. 31, 2017
Change In Organizational Structure And Realignment Of Expenses [Abstract]
Schedule of change in organizational structure	Three Months Ended March 31, 2016 As Previously Reclassification As Reported Revenues: Data center and network services $ 50,872 $ (50,872 ) $ — Cloud and hosting services 25,052 (25,052 ) — INAP COLO — 55,881 55,881 INAP CLOUD — 20,043 20,043 Direct costs of sales and services, exclusive of depreciation and amortization: Data center and network services 24,373 (24,373 ) — Cloud and hosting services 6,704 (6,704 ) — INAP COLO — 26,333 26,333 INAP CLOUD — 4,744 4,744

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	Level 1 Level 2 Level 3 Total March 31, 2017: Foreign currency contracts (note 8) $ — $ 77 $ — $ 77 Asset retirement obligations (1) — — 2,861 2,861 December 31, 2016: Foreign currency contracts (note 8) — 195 — 195 Asset retirement obligations (1) — — 2,810 2,810 (1) We calculate the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. The balance is included in “Other long-term liabilities,” in the accompanying consolidated balance sheets.
Schedule of changes in asset retirement obligations	Balance, January 1, 2017 $ 2,810 Accretion 51 Balance, March 31, 2017 $ 2,861
Schedule of fair value of term loan and revolving credit facility	March 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Term loan $ 251,003 $ 251,317 $ 291,000 $ 267,700 Revolving credit facility 35,500 35,544 35,500 32,600

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of re-allocated goodwill	December 31, Re-allocations March 31, Operating segments: Data center and network services $ — $ $ — Cloud and hosting services 50,209 (50,209 ) — INAP COLO — 6,003 6,003 INAP CLOUD — 44,206 44,206 Total $ 50,209 $ — $ 50,209

EXIT ACTIVITIES AND RESTRUCTU23

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Schedule of transactions and balances for exit activities and restructuring charges	Balance Initial Plan Cash Balance Activity for 2016 restructuring charge: Severance $ 1,911 $ — $ 566 $ (993 ) $ 1,484 Real estate obligations 933 — 378 (187 ) 1,124 Activity for 2015 restructuring charge: Real estate obligation 111 — (4 ) (7 ) 100 Service contracts 565 — 5 (49 ) 521 Activity for 2014 restructuring charge: Real estate obligation 1,183 — 34 (150 ) 1,067 $ 4,703 $ — $ 979 $ (1,386 ) $ 4,296 Balance Initial Plan Cash Balance March 31, 2016 Activity for 2016 restructuring charge: Real estate obligations — 105 — (9 ) 96 Service contracts — 42 — — 42 Activity for 2015 restructuring charge: Real estate obligation 164 — — (33 ) 131 Service contracts 843 — — (139 ) 704 Activity for 2014 restructuring charge: Real estate obligations 1,701 — 18 (144 ) 1,575 Activity for 2007 restructuring charge: Real estate obligation 1,170 — 181 (478 ) 873 $ 3,878 $ 147 $ 199 $ (803 ) $ 3,421

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of the activity of the foreign currency contracts	Three Months Ended 2017 2016 Unrealized gain, net of less than $0.1 million and $0.1 million income tax, respectively, included in “Accumulated items of other comprehensive loss” in the accompanying consolidated balance sheets $ 85 $ 638 Realized loss on effective portion, included as compensation expense in “Direct costs of customer support” and “Sales, general and administrative” in the accompanying consolidated statements of operations and comprehensive loss (80 ) (179 )

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of operating results for business segments, along with reconciliation from segment profit to loss before income taxes and equity in (earnings) of equity-method investment	Three Months Ended 2017 2016 Revenues: INAP COLO $ 53,339 $ 55,881 INAP CLOUD 18,794 20,043 Total revenues 72,133 75,924 Direct costs of sales and services, customer support and sales and marketing, exclusive of depreciation and amortization: INAP COLO 33,650 36,812 INAP CLOUD 9,464 10,957 Total direct costs of sales and services, customer support and sales and marketing 43,114 47,769 Business unit contribution: INAP COLO 19,689 19,069 INAP CLOUD 9,330 9,086 Total business unit contribution 29,019 28,155 Exit activities, restructuring and impairments 1,023 201 Other operating expenses, including depreciation and amortization 27,504 30,155 Income (loss) from operations 492 (2,201 ) Non-operating expenses 8,234 7,341 Loss before income taxes and equity in (earnings) of equity-method investment $ (7,742 ) $ (9,542 )

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per share	Three Months Ended 2017 2016 Net loss attributable to common stock $ (8,230 ) $ (9,644 ) Weighted average shares outstanding, basic and diluted 64,351 51,774 Net loss per share, basic and diluted $ (0.13 ) $ (0.19 ) Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans 5,539 7,598

CHANGE IN ORGANIZATIONAL STRU27

CHANGE IN ORGANIZATIONAL STRUCTURE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	$ 72,133	$ 75,924
Operating segments
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	72,133	75,924
Direct costs of sales and services, exclusive of depreciation and amortization	43,114	47,769
Operating segments | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
Operating segments | Cloud And Hosting Services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
Operating segments | INAP COLO
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	53,339	55,881
Direct costs of sales and services, exclusive of depreciation and amortization	24,806	26,333
Operating segments | INAP CLOUD
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues	18,794	20,043
Direct costs of sales and services, exclusive of depreciation and amortization	$ 4,239	4,744
As Previously Reported | Operating segments | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		50,872
Direct costs of sales and services, exclusive of depreciation and amortization		24,373
As Previously Reported | Operating segments | Cloud And Hosting Services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		25,052
Direct costs of sales and services, exclusive of depreciation and amortization		6,704
As Previously Reported | Operating segments | INAP COLO
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
As Previously Reported | Operating segments | INAP CLOUD
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues
Direct costs of sales and services, exclusive of depreciation and amortization
Reclassification | Operating segments | Data center and network services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		(50,872)
Direct costs of sales and services, exclusive of depreciation and amortization		(24,373)
Reclassification | Operating segments | Cloud And Hosting Services
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		(25,052)
Direct costs of sales and services, exclusive of depreciation and amortization		(6,704)
Reclassification | Operating segments | INAP COLO
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		55,881
Direct costs of sales and services, exclusive of depreciation and amortization		26,333
Reclassification | Operating segments | INAP CLOUD
Change In Organizational Structure And Realignment Of Expenses [Line Items]
Total revenues		20,043
Direct costs of sales and services, exclusive of depreciation and amortization		$ 4,744

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Assets and liabilities measured at fair value on recurring basis (Details) - Recurring basis - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Total | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		$ 77	$ 195
Total | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	[1]	2,861	2,810
Level 1 | Foreign currency contracts
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	[1]
Level 2 | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		77	195
Level 2 | Asset retirement obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	[1]
Level 3 | Foreign currency contracts
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	[1]	$ 2,861	$ 2,810
[1]	We calculate the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. The balance is included in "Other long-term liabilities," in the accompanying consolidated balance sheets.

FAIR VALUE MEASUREMENTS - Sum29

FAIR VALUE MEASUREMENTS - Summary of changes in Level 3 financial asset - Asset retirement obligation (Details 1) - Asset retirement obligations $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, January 1, 2017	$ 2,810
Accretion	51
Balance, March 31, 2017	$ 2,861

FAIR VALUE MEASUREMENTS - Sum30

FAIR VALUE MEASUREMENTS - Summary of fair value Level 3 debt - Term loan (Details 2) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	$ 251,003	$ 291,000
Revolving credit facility	35,500	35,500
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term loan	251,317	267,700
Revolving credit facility	$ 35,544	$ 32,600

GOODWILL- Summary of re-allocat

GOODWILL- Summary of re-allocations of Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill	$ 50,209	$ 50,209
Operating segments
Goodwill [Line Items]
Goodwill	50,209	50,209
Operating segments | Re-allocations
Goodwill [Line Items]
Goodwill
Operating segments | Data center and network services
Goodwill [Line Items]
Goodwill
Operating segments | Data center and network services | Re-allocations
Goodwill [Line Items]
Goodwill
Operating segments | Cloud And Hosting Services
Goodwill [Line Items]
Goodwill		50,209
Operating segments | Cloud And Hosting Services | Re-allocations
Goodwill [Line Items]
Goodwill	(50,209)
Operating segments | INAP COLO
Goodwill [Line Items]
Goodwill	6,003
Operating segments | INAP COLO | Re-allocations
Goodwill [Line Items]
Goodwill	6,003
Operating segments | INAP CLOUD
Goodwill [Line Items]
Goodwill	44,206
Operating segments | INAP CLOUD | Re-allocations
Goodwill [Line Items]
Goodwill	$ 44,206

GOODWILL (Detail Textuals)

GOODWILL (Detail Textuals)	3 Months Ended
	Mar. 31, 2017Segment
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable segments	6

DEBT (Detail Textuals)

DEBT (Detail Textuals) - Credit Agreement - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Mar. 31, 2017	Jan. 26, 2017
Short-term Debt [Line Items]
Minimum gross cash proceeds from equity offering	$ 40
Minimum net cash proceeds from equity offering	37
Term Loan
Short-term Debt [Line Items]
Fee paid		$ 2.6
Debt discount		2.2
Third party fees		0.3
Expenses recorded related to term loan		0.3
Revolving credit facility
Short-term Debt [Line Items]
Fee paid	$ 1.6		$ 0.9
Prepaid debt issuance costs		0.4
Debt issuance costs		$ 0.1

EQUITY (Detail Textuals)

EQUITY (Detail Textuals) - Securities Purchase Agreement	1 Months Ended
	Feb. 22, 2017USD ($)$ / sharesshares
Subsidiary, Sale of Stock [Line Items]
Aggregate shares issued | shares	23,802,850
Sale of stock, price per share | $ / shares	$ 1.81
Value of aggregate shares issued	$ 43,100,000
Issuance of stock, transaction expenses	100,000
Proceeds used to pay down credit facitlity	$ 39,200,000

EXIT ACTIVITIES AND RESTRUCTU35

EXIT ACTIVITIES AND RESTRUCTURING LIABILITIES - Exit activities and restructuring charges for Real estate obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restructuring Reserve [Roll Forward]
Balance	$ 4,703	$ 3,878
Initial Charges		147
Plan Adjustments	979	199
Cash Payments	(1,386)	(803)
Balance	4,296	3,421
INAP COLO | Activity of 2016 restructuring | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance	933
Initial Charges		105
Plan Adjustments	378
Cash Payments	(187)	(9)
Balance	1,124	96
INAP COLO | Activity of 2016 restructuring | Service contracts
Restructuring Reserve [Roll Forward]
Balance
Initial Charges		42
Plan Adjustments
Cash Payments
Balance		42
INAP COLO | Activity of 2015 restructuring | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance	111	164
Initial Charges
Plan Adjustments	(4)
Cash Payments	(7)	(33)
Balance	100	131
INAP COLO | Activity of 2015 restructuring | Service contracts
Restructuring Reserve [Roll Forward]
Balance	565	843
Initial Charges
Plan Adjustments	5
Cash Payments	(49)	(139)
Balance	521	704
INAP COLO | Activity of 2014 restructuring | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance	1,183	1,701
Initial Charges
Plan Adjustments	34	18
Cash Payments	(150)	(144)
Balance	1,067	1,575
INAP COLO | Activity of 2007 restructuring | Real estate obligations
Restructuring Reserve [Roll Forward]
Balance		1,170
Initial Charges
Plan Adjustments		181
Cash Payments		(478)
Balance		$ 873
INAP COLO AND CLOUD | Activity of 2016 restructuring | Severance
Restructuring Reserve [Roll Forward]
Balance	1,911
Initial Charges
Plan Adjustments	566
Cash Payments	(993)
Balance	$ 1,484

DERIVATIVES (Details)

DERIVATIVES (Details) - Foreign currency contracts - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative [Line Items]
Unrealized gain, net of less than $0.1 million and $0.1 million income tax, respectively, included in "Accumulated items of other comprehensive loss" in the accompanying consolidated balance sheets	$ 85	$ 638
Realized loss on effective portion, included as compensation expense in "Direct costs of customer support" and "Sales, general and administrative" in the accompanying consolidated statements of operations and comprehensive loss	$ (80)	$ (179)

DERIVATIVES (Parentheticals) (D

DERIVATIVES (Parentheticals) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Tax on unrealized losses arising from foreign currency contracts	$ 0.1	$ 0.1

DERIVATIVES (Detail Textuals)

DERIVATIVES (Detail Textuals) - Designated as Hedging Instrument - Cash Flow Hedging - Foreign currency contracts CAD in Millions, $ in Millions	Mar. 31, 2017USD ($)	Mar. 31, 2017CAD	Dec. 31, 2016USD ($)
June 2,017
Derivative [Line Items]
Notional amount of cash flow hedge instruments | CAD		CAD 12
Foreign currency contracts exchange rate	1.2855	1.2855
Other current liabilities
Derivative [Line Items]
Fair value of derivatives | $	$ 0.1		$ 0.2

OPERATING SEGMENTS - Summary of

OPERATING SEGMENTS - Summary of operating results for business segments - (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Total revenues	$ 72,133	$ 75,924
Business unit contribution:
Exit activities, restructuring and impairments	1,023	201
Other operating expenses, including depreciation and amortization	27,504	30,155
Income (loss) from operations	492	(2,201)
Non-operating expense	8,234	7,341
Loss before income taxes and equity in (earnings) of equity-method investment	(7,742)	(9,542)
Operating segments
Revenues:
Total revenues	72,133	75,924
Direct costs of sales and services, exclusive of depreciation and amortization:
Total direct costs of sales and services, exclusive of depreciation and amortization	43,114	47,769
Business unit contribution:
Total business unit contribution	29,019	28,155
Operating segments | INAP COLO
Revenues:
Total revenues	53,339	55,881
Direct costs of sales and services, exclusive of depreciation and amortization:
Total direct costs of sales and services, exclusive of depreciation and amortization	24,806	26,333
Business unit contribution:
Total business unit contribution	19,689	19,069
Operating segments | INAP CLOUD
Revenues:
Total revenues	18,794	20,043
Direct costs of sales and services, exclusive of depreciation and amortization:
Total direct costs of sales and services, exclusive of depreciation and amortization	4,239	4,744
Business unit contribution:
Total business unit contribution	$ 9,330	$ 9,086

OPERATING SEGMENTS (Detail Text

OPERATING SEGMENTS (Detail Textuals)	3 Months Ended
	Mar. 31, 2017Segment
Segment Reporting [Abstract]
Number of new reportable segments	2

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net loss attributable to common stock	$ (8,230)	$ (9,644)
Weighted average shares outstanding, basic and diluted (in shares)	64,351	51,774
Net loss per share, basic and diluted (in dollars per share)	$ (0.13)	$ (0.19)
Anti-dilutive securities excluded from diluted net loss per share calculation for stock-based compensation plans (in shares)	5,539	7,598

RECENT ACCOUNTING PRONOUNCEME42

RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textuals) - USD ($) $ in Millions	Oct. 31, 2016	Mar. 31, 2016
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]
Deferred tax asset	$ 2.2	$ 10.8
Deferred tax asset, valuation allowance	$ 1.9	$ 10.8

SUBSEQUENT EVENT (Detail Textua

SUBSEQUENT EVENT (Detail Textuals) - Subsequent event - Credit Agreement $ in Millions	Apr. 06, 2017USD ($)
Term Loan
Subsequent Event [Line Items]
Total amount available under Credit Agreement	$ 300
Revolving credit facility
Subsequent Event [Line Items]
Total amount available under Credit Agreement	25
Letter of credit facility
Subsequent Event [Line Items]
Total amount available under Credit Agreement	15
Term loans and/or incremental revolving loan commitments
Subsequent Event [Line Items]
Total amount available under Credit Agreement	$ 50