Exhibit 99.1
Equinix Reports Second Quarter 2004 Results
Business Editors
FOSTER CITY, Calif.--(BUSINESS WIRE)--July 28, 2004--Equinix, Inc.
(Nasdaq:EQIX)
-- Increased revenues by 39% over same quarter 2003 and 7% over
previous quarter
-- Added 86 new customers including Ask Jeeves Japan, AT Kearney,
Buena Vista, General Mills, SAP Asia, United Online and
Washington Mutual with strong bookings from installed base
including Amazon.com, America Online and Google
-- Free cash flow positive for the fourth consecutive quarter
-- Raised 2004 revenue guidance to $160 to $163 million
Equinix, Inc. (Nasdaq: EQIX), the leading provider of
network-neutral data centers and Internet exchange services, today
reported its quarterly results for the period ended June 30, 2004.
Revenues were $39.4 million for the second quarter ended June 30,
2004 representing a 39% increase over the same quarter last year and a
7% increase over first quarter. Recurring revenues, consisting of
colocation, interconnection and managed services, were $37.3 million,
a 43% increase over the same quarter last year and an 8% increase over
first quarter. Non-recurring revenues, consisting primarily of
professional services and installation fees, were $2.1 million for the
quarter ended June 30, 2004, as compared to $2.3 million in the
previous quarter.
Cost of revenues were $34.2 million for the second quarter, an 8%
increase over the same quarter last year and a 1% increase over the
previous quarter. Cost of revenues, excluding non-cash depreciation,
amortization, accretion and stock-based compensation of $13.5 million,
were $20.7 million for the second quarter, an 18% increase over same
quarter last year and a 2% increase over the previous quarter. Cash
gross margins, defined as gross profit less non-cash depreciation,
amortization, accretion and stock-based compensation, divided by
revenues, for the quarter were 48%, up from 39% the same quarter last
year and 45% the previous quarter.
Selling, general and administrative expenses were $12.4 million
for the second quarter, a 5% decrease from the same quarter last year
and a 4% decrease from the previous quarter. Selling, general and
administrative expenses, excluding non-cash depreciation, amortization
and stock-based compensation of $1.2 million, were $11.2 million for
the second quarter, a 5% increase from same quarter last year and 3%
increase from the previous quarter.
Net loss for the second quarter was $9.2 million, or a basic and
diluted net loss per share of $0.51. The Company's cash net income,
defined as net income (loss) less non-cash depreciation, amortization,
accretion, stock-based compensation expense and non-cash interest
expense, for the quarter was $7.2 million compared to $1.7 million in
the previous quarter.
EBITDA, defined as loss from operations less non-cash
depreciation, amortization, accretion and stock-based compensation
expense, for the second quarter was $7.5 million, a $7.2 million
increase from the same quarter last year and a $1.9 million increase
over the previous quarter. This reflects a 72% flow-though rate on
incremental revenues in the quarter.
Capital expenditures in the quarter were $4.3 million, of which
$3.3 million was attributed to ongoing capital expenditures and the
remaining $1.0 million related to expansion capital expenditures.
The company generated cash from operating activities of $8.9
million, a 37% or $2.4 million increase over the previous quarter. The
company increased its cash used in investing activities to $5.6
million, a 10% or a $0.5 million increase over the previous quarter.
As a result, the company generated $3.3 million in free cash flow, a
$1.9 million increase over the previous quarter. Free cash flow is
defined as net cash generated from operating activities less net cash
used in investing activities (excluding the purchase, sale and
maturities of short-term investments).
As of June 30, 2004, the company's cash, cash equivalents and
short-term investments were $92.4 million, an increase of $3.8 million
over the prior quarter.
Equinix added 86 new customers in the second quarter including Ask
Jeeves Japan, AT Kearney, Born Capital Markets, Buena Vista, General
Mills, MCI Worldcom Asia Pacific, Patagonia, SAP Asia, Swisscom,
United Online, Washington Mutual and Watson Wyatt. The company
received additional orders in the quarter from more than 50% of its
existing U.S. customers including Amazon.com, America Online, Goldman
Sachs, Google, IBM and Yahoo! The company ended the quarter with
approximately 830 customers and a weighted average utilization rate of
41% in its existing IBX centers, including its expansion property in
Ashburn, Virginia. The number of cabinets billing at the end of the
quarter was approximately 10,100 out of a total of 24,500, up from
approximately 9,400 the previous quarter.
"We couldn't be more pleased with where we are at the midpoint of
2004. We've continued to see strong growth from our existing customers
while adding 86 new customers," said Peter Van Camp, CEO of Equinix.
"With a great first half behind us and solid visibility from our
recurring revenue model, we are raising our revenue targets for 2004."
Other Company Developments
-- U.S. interconnection service revenues increased by 6% over
first quarter and remained steady at 22% of U.S. recurring
revenues for the quarter. Interconnection services represent
20% of total recurring revenues. Customer cross-connects grew
to 7,930, a 48% increase over the same quarter last year and a
9% increase over the prior quarter. Ports on the Equinix GigE
Exchange were reported at 293, a 37% increase over the same
quarter last year and a 6% increase over the first quarter.
-- Of new customer booked revenue in the quarter, over 65% was
derived from new customers outsourcing applications for the
first time.
Business Outlook
For 2004, revenues are expected to be in the range of $160.0 to
$163.0 million increasing our midpoint guidance by $2.5 million from
the previous guidance of $156.0 to $162.0 million. Total year cash
gross margins are expected to be in the range of 47% to 49%. Cash
selling, general and administrative expenses are expected to be in the
range of $43.5 to $44.5 million. EBITDA for the year is expected to be
between $32.0 and $35.0 million. Capital expenditures for 2004 are
expected to be approximately $22.0 to $23.0 million, of which
approximately $10.0 million of expansion capital expenditures will be
used to fund our expansion projects in the Santa Clara and Washington,
D.C. markets. This also includes $2.0 million of directly billable
capital expenditures that will be used to expand an existing U.S.
government project. The remaining capital expenditures will fall
between the third quarter and fourth quarter depending on the timing
of expansion projects. Free cash flow is expected to be in excess of
$10.0 million.
For the third quarter 2004, the company expects revenue to be in
the range of $41.5 to $42.5 million. Cash gross margins are expected
to be in the range of 49% to 50%. Cash selling, general and
administrative expenses are expected to be approximately $11.0
million. EBITDA for the quarter is expected to be between $9.0 and
$10.0 million.
The company will discuss its results and guidance on its quarterly
conference call on Wednesday, July 28, 2004, at 4:30 p.m. Eastern Time
(1:30 p.m. Pacific Time). To hear the conference call, please dial
1-484-630-5144 (domestic and international) and reference the passcode
(EQIX). A simultaneous live Webcast of the call will be available over
the Internet at www.equinix.com, under the Investor Relations heading.
Also available under the Investor Relations heading will be historical
revenue metrics. A replay of the call will be available beginning on
Wednesday, July 28, 2004 at 7:30 p.m. (ET) by dialing 1-203-369-0810.
About Equinix
Equinix is the leading global provider of network-neutral data
centers and Internet exchange services for enterprises, content
companies, systems integrators and network services providers. Through
the company's 14 Internet Business Exchange(TM) (IBX(R)) centers in
five countries, customers can directly interconnect with every major
global network and ISP for their critical peering, transit and traffic
exchange requirements. These interconnection points facilitate the
highest performance and growth of the Internet by serving as neutral
and open marketplaces for Internet infrastructure services, allowing
customers to expand their businesses while reducing costs.
Equinix and IBX are registered trademarks of Equinix, Inc.
Internet Business Exchange is a trademark of Equinix, Inc.
This press release contains forward-looking statements that
involve risks and uncertainties. Actual results may differ materially
from expectations discussed in such forward-looking statements.
Factors that might cause such differences include, but are not limited
to, the challenges of operating IBX centers and developing, deploying
and delivering Equinix services; a failure to receive significant
revenue from customers in the recently-acquired Santa Clara and
Washington, D.C. centers; competition from existing and new
competitors; the ability to generate sufficient cash flow or otherwise
obtain funds to repay outstanding indebtedness; the loss or decline in
business from our key customers and other risks described from time to
time in Equinix's filings with the Securities and Exchange Commission.
In particular, see Equinix's recent quarterly and annual reports filed
with the Securities and Exchange Commission, copies of which are
available upon request from Equinix. Equinix does not assume any
obligation to update the forward-looking information contained in this
press release.
Non-GAAP Financial Measures
Equinix continues to provide all information required in
accordance with generally accepted accounting principles (GAAP), but
it believes that evaluating its ongoing operating results may be
difficult if limited to reviewing only GAAP financial measures.
Accordingly, Equinix uses non-GAAP financial measures, such as EBITDA,
cash cost of revenues, cash gross margins, cash operating expenses
(also known as cash selling, general and administrative expenses or
cash SG&A), cash interest expense, cash net income (loss) and free
cash flow to evaluate its operations. In presenting these non-GAAP
financial measures, Equinix excludes certain non-cash items that it
believes are not good indicators of the company's current or future
operating performance. These non-cash items are depreciation,
amortization, accretion, stock-based compensation, non-cash interest,
and, with respect to 2004 results, the non-cash portion of loss on
debt extinguishment and conversion (there were no such losses in
2003). Recent legislative and regulatory changes encourage use of and
emphasis on GAAP financial metrics and require companies to explain
why non-GAAP financial metrics are relevant to management and
investors. Equinix excludes these non-cash items in order for
Equinix's lenders, investors, and industry analysts who review and
report on the company, to better evaluate the company's core operating
performance and cash spending levels relative to its industry sector
and competitor base.
Equinix excludes depreciation expense as these non-cash charges
primarily relate to the initial construction costs of our IBX Centers
and do not reflect our current or future cash spending levels to
support our business. Our IBX Centers are long-lived assets, and have
an economic life greater than ten years. The construction costs of our
IBX Centers do not recur and future capital expenditures remain minor
relative to our initial investment. This is a trend we expect to
continue. In addition, depreciation is also based on the estimated
useful lives of our IBX Centers. These estimates could vary from
actual performance of the asset, are based on historic costs incurred
to build out our IBX Centers, and are not indicative of current or
expected future capital expenditures. Therefore, Equinix excludes
depreciation from its operating results when evaluating its
operations.
In addition, in presenting the non-GAAP financial measures,
Equinix excludes amortization expense related to certain intangible
assets, as it represents a non-cash cost that may not recur and is not
a good indicator of the company's current or future operating
performance. Equinix excludes non-cash stock-based compensation
expense as it represents expense attributed to stock options that have
no current or future cash obligations. As such, we, and our investors
and analysts, exclude this stock-based compensation expense when
assessing the cash generating performance of our operations. Equinix
excludes interest expense associated with the amortization of debt
issuance costs and discounts, as well as the interest expense
associated with its convertible secured notes as such interest
expenses do not require any cash in the periods presented nor will
they in future periods. Lastly, with respect to its 2004 results,
Equinix excludes the non-cash portion of the loss on debt
extinguishment and conversion, which represents the write-off of the
unamortized debt issuance costs and discounts associated with the debt
facilities extinguished or converted as no cash was expended in the
periods presented for such write-offs nor will there be in the future.
Management believes such write-offs of debt issuance costs and
discounts were unique costs that are not expected to recur, and
consequently, does not consider these charges as a normal component of
expenses related to current and ongoing operations.
Our management does not itself, nor does it suggest that investors
should, consider such non-GAAP financial measures in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. However, we have presented such non-GAAP financial measures
to provide investors with an additional tool to evaluate our operating
results in a manner that focuses on what management believes to be our
ongoing business operations. Management believes that the inclusion of
these non-GAAP financial measures provide consistency and
comparability with past reports and provide a better understanding of
the overall performance of the business and its ability to perform in
subsequent periods. Equinix believes that if it did not provide such
non-GAAP financial information, investors would not have all the
necessary data to analyze Equinix effectively.
Investors should note, however, that the non-GAAP financial
measures used by Equinix may not be the same non-GAAP financial
measures, and may not be calculated in the same manner, as that of
other companies. In addition, whenever Equinix uses such non-GAAP
financial measures, it provides a reconciliation of non-GAAP financial
measures to the most closely applicable GAAP financial measure.
Investors are encouraged to review the related GAAP financial measures
and the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measure.
Equinix intends to calculate the various non-GAAP financial
measures in future periods consistent with how it was calculated for
the three months ended June 30, 2004 and 2003, presented within this
press release.
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION
(in thousands, except per share detail)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
------- -------- -------- --------
(unaudited)
Recurring revenues $37,271 $ 25,999 $ 71,754 $ 50,102
Non-recurring revenues 2,152 2,435 4,489 3,767
------- -------- -------- --------
Revenues 39,423 28,434 76,243 53,869
Cost of revenues 34,150 31,634 67,935 62,253
------- -------- -------- --------
Gross profit (loss) 5,273 (3,200) 8,308 (8,384)
------- -------- -------- --------
Operating expenses:
Sales and marketing 4,423 4,684 9,065 9,387
General and
administrative 8,008 8,358 16,250 19,282
------- -------- -------- --------
Total operating
expenses 12,431 13,042 25,315 28,669
------- -------- -------- --------
Loss from operations (7,158) (16,242) (17,007) (37,053)
------- -------- -------- --------
Interest and other income
(expense):
Interest income 242 66 484 136
Interest expense and other (2,283) (5,027) (6,413) (9,839)
Loss on debt extinguishment
and conversion - - (16,211) -
------- -------- -------- --------
Total interest and
other, net (2,041) (4,961) (22,140) (9,703)
------- -------- -------- --------
Net loss before income taxes (9,199) (21,203) (39,147) (46,756)
Income taxes (6) - (200) -
----------- --------- --------- ---------
Net loss $(9,205) $(21,203) $(39,347) $(46,756)
======= ======== ======== ========
Basic and diluted net loss
per share $ (0.51) $ (2.44) $ (2.33) $ (5.43)
======= ======== ======== ========
Shares used in computing
basic and diluted
net loss per share 18,191 8,706 16,862 8,609
======= ======== ======== ========
Pro forma basic and diluted
net loss per share (1) $ (0.51) $ (2.44) $ (1.37) $ (5.43)
======= ======== ======== ========
Shares used in computing pro
forma basic and diluted
net loss per share 18,191 8,706 16,862 8,609
======= ======== ======== ========
- ----------------------------
(1) Pro forma basic and diluted net loss per share excludes the
$16,211,000 loss on debt extinguishment and conversion during the
six months ended June 30, 2004.
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS -
NON-GAAP PRESENTATION
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
-------- -------- -------- --------
(unaudited)
Recurring revenues $ 37,271 $ 25,999 $ 71,754 $ 50,102
Non-recurring revenues 2,152 2,435 4,489 3,767
-------- -------- -------- --------
Revenues (1) 39,423 28,434 76,243 53,869
Cash cost of revenues (2) 20,631 17,455 40,851 34,485
-------- -------- -------- --------
Cash gross profit (3) 18,792 10,979 35,392 19,384
-------- -------- -------- --------
Cash operating expenses (4):
Cash sales and marketing
expenses (5) 3,933 4,096 8,071 8,161
Cash general and
administrative expenses (6) 7,331 6,594 14,136 14,008
-------- -------- -------- --------
Total cash operating
expenses 11,264 10,690 22,207 22,169
-------- -------- -------- --------
EBITDA (7)(8) 7,528 289 13,185 (2,785)
-------- -------- -------- --------
Cash interest and other
income (expense) (9):
Interest income 242 66 484 136
Cash interest expense
and other (10) (547) (2,776) (2,062) (5,502)
Cash loss on debt
extinguishment and
conversion (11) - - (2,505) -
Income taxes (6) - (200) -
-------- -------- -------- --------
Total cash interest
and other, net (311) (2,710) (4,283) (5,366)
-------- -------- -------- --------
Cash net income (loss) (12) $ 7,217 $ (2,421) $ 8,902 $ (8,151)
======== ======== ======== ========
Cash gross margins (13) 48% 39% 46% 36%
======== ======== ======== ========
- ----------------------------
(1) The geographic split of our revenues is presented below:
U.S. revenues $ 34,093 $ 24,481 $ 66,114 $ 45,761
Asia-Pacific revenues 5,330 3,953 10,129 8,108
-------- -------- -------- --------
Revenues $ 39,423 $ 28,434 $ 76,243 $ 53,869
======== ======== ======== ========
(2) We define cash cost of revenues as cost of revenues less
depreciation, amortization, accretion and stock-based compensation
as presented below:
Cost of revenues $ 34,150 $ 31,634 $ 67,935 $ 62,253
Depreciation,
amortization and
accretion expense (13,517) (14,154) (27,062) (27,703)
Stock-based compensation
expense (2) (25) (22) (65)
-------- -------- -------- --------
Cash cost of revenues $ 20,631 $ 17,455 $ 40,851 $ 34,485
======== ======== ======== ========
(3) We define cash gross profit as revenues less cash cost of revenues
(as defined above).
(4) We define cash operating expenses as operating expenses less
depreciation, amortization and stock-based compensation. We also
refer to cash operating expenses as cash selling, general and
administrative expenses or "cash SG&A".
(5) We define cash sales and marketing expenses as sales and marketing
expenses less depreciation, amortization and stock-based
compensation as presented below:
Sales and marketing
expenses $ 4,423 $ 4,684 $ 9,065 $ 9,387
Depreciation and
amortization expense (475) (519) (949) (1,044)
Stock-based compensation
expense (15) (69) (45) (182)
-------- -------- -------- --------
Cash sales and
marketing expenses $ 3,933 $ 4,096 $ 8,071 $ 8,161
======== ======== ======== ========
(6) We define cash general and administrative expenses as general and
administrative expenses less depreciation, amortization and
stock-based compensation as presented below:
General and
administrative expenses $ 8,008 $ 8,358 $ 16,250 $ 19,282
Depreciation and
amortization expense (511) (1,148) (1,321) (3,853)
Stock-based compensation
expense (166) (616) (793) (1,421)
-------- -------- -------- --------
Cash general and
administrative
expenses $ 7,331 $ 6,594 $ 14,136 $ 14,008
======== ======== ======== ========
(7) We define EBITDA as loss from operations less depreciation,
amortization, accretion and stock-based compensation expense as
presented below:
Loss from operations $ (7,158) $(16,242) $(17,007) $(37,053)
Depreciation,
amortization and
accretion expense 14,503 15,821 29,332 32,600
Stock-based compensation
expense 183 710 860 1,668
-------- -------- -------- --------
EBITDA $ 7,528 $ 289 $ 13,185 $ (2,785)
======== ======== ======== ========
(8) The geographic split of our EBITDA is presented below:
U.S. loss from
operations $ (4,800) $(11,623) $(12,202) $(28,227)
U.S. depreciation,
amortization and
accretion expense 12,975 13,982 26,435 28,854
U.S. stock-based
compensation expense 183 710 860 1,668
-------- -------- -------- --------
U.S. EBITDA 8,358 3,069 15,093 2,295
-------- -------- -------- --------
Asia-Pacific loss from
operations (2,358) (4,619) (4,805) (8,826)
Asia-Pacific depreciation,
amortization and
accretion expense 1,528 1,839 2,897 3,746
Asia-Pacific stock-based
compensation expense - - - -
-------- -------- -------- --------
Asia-Pacific EBITDA (830) (2,780) (1,908) (5,080)
-------- -------- -------- --------
EBITDA $ 7,528 $ 289 $ 13,185 $ (2,785)
======== ======== ======== ========
(9) We define cash interest and other income (expense) as interest
expense plus income taxes less interest income, non-cash interest
expense and non-cash loss on debt extinguishment and conversion.
Non-cash interest expense is comprised of amortization of debt
discounts and debt issuance costs and non-cash interest on our
convertible secured notes. Non-cash loss on debt extinguishment
and conversion is comprised of the non-cash write-off of debt
issuance costs and discounts.
(10) Cash interest expense and other is defined as interest expense
less amortization of debt discounts and debt issuance costs and
non-cash interest on our convertible secured notes as presented
below:
Interest expense and
other $ (2,283) $ (5,027) $ (6,413) $ (9,839)
Amortization of debt
discounts and debt
issuance costs 505 1,163 1,814 2,199
Non-cash interest on
convertible secured
notes 1,231 1,088 2,537 2,138
-------- -------- -------- --------
Non-cash interest
expense 1,736 2,251 4,351 4,337
---------- --------- --------- ---------
Cash interest
expense and other $ (547) $ (2,776) $ (2,062) $ (5,502)
======== ======== ======== ========
(11) Loss on debt
extinguishment
and conversion $ - $ - $(16,211) $ -
Non-cash write-off of
debt issuance costs and
discounts - - 13,706 -
-------- -------- -------- --------
Non-cash loss on
debt extinguishment
and conversion - - 13,706 -
---------- --------- --------- ---------
Cash loss on debt
extinguishment and
conversion $ - $ - $ (2,505) $ -
======== ======== ======== ========
(12) We define cash net income (loss) as net income (loss) less
depreciation, amortization, accretion, stock-based compensation
expense, non-cash interest expense and non-cash loss on debt
extinguishment and conversion as presented below:
Net income (loss) $ (9,205) $(21,203) $(39,347) $(46,756)
Depreciation,
amortization and
accretion expense 14,503 15,821 29,332 32,600
Stock-based compensation
expense 183 710 860 1,668
Non-cash interest
expense (defined above) 1,736 2,251 4,351 4,337
Non-cash loss on debt
extinguishment and
conversion
(defined above) - - 13,706 -
-------- -------- -------- --------
Cash net income
(loss) $ 7,217 $ (2,421) $ 8,902 $ (8,151)
======== ======== ======== ========
(13) We define cash gross margins as cash gross profit divided by
revenues.
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets
June 30, December 31,
2004 2003
--------- ---------
(unaudited)
Cash, cash equivalents and short-term
investments $ 92,399 $ 72,971
Accounts receivable, net 12,595 10,178
Property and equipment, net 324,548 343,554
Goodwill and other intangible assets, net 22,303 23,509
Debt issuance costs, net 3,368 5,954
Other assets 9,471 8,366
--------- ---------
Total assets $ 464,684 $ 464,532
========= =========
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 16,973 $ 16,426
Accrued property and equipment 922 2,454
Accrued interest payable 1,672 1,114
Debt facilities and capital lease obligations - 3,412
Credit facility - 34,281
Senior notes - 29,220
Convertible secured notes 32,818 31,683
Convertible subordinated debentures 86,250 -
Deferred rent 23,394 20,283
Other liabilities 6,372 5,582
--------- ---------
Total liabilities 168,401 144,455
--------- ---------
Preferred stock 2 2
Common stock 18 15
Additional paid-in capital 771,046 755,698
Deferred stock-based compensation (477) (1,032)
Accumulated other comprehensive income 845 1,198
Accumulated deficit (475,151) (435,804)
--------- ---------
Total stockholders' equity 296,283 320,077
--------- ---------
Total liabilities and
stockholders' equity $ 464,684 $ 464,532
========= =========
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
(in thousands)
Six Months Ended
June 30, June 30,
2004 2003
-------- --------
(unaudited)
Cash flows from operating activities:
Net loss $(39,347) $(46,756)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation, amortization and accretion 29,332 32,600
Amortization of stock-based compensation 860 1,668
Non-cash interest expense 4,351 4,337
Loss on debt extinguishment and
conversion 16,211 -
Other reconciling items 2,919 1,859
Changes in operating assets and
liabilities:
Accounts receivable (2,368) (883)
Accounts payable and accrued
expenses 1,013 (3,090)
Accrued restructuring charges (466) (9,657)
Accrued merger and financing costs - (4,356)
Accrued interest payable 503 (1,981)
Other assets and liabilities 2,365 4,013
-------- --------
Net cash provided by (used in)
operating activities 15,373 (22,246)
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (9,162) (1,460)
Accrued property and equipment (1,532) -
Other investing activities - 2,220
-------- --------
Net cash provided by (used in)
investing activities (10,694) 760
-------- --------
Cash flows from financing activities:
Proceeds from warrants, stock options and
employee stock purchase plan 2,590 382
Proceeds from convertible secured notes - 10,000
Proceeds from convertible subordinated
debentures 86,250 -
Repayment of debt facilities and capital
lease obligations (3,527) (4,395)
Repayment of credit facility (34,281) (990)
Repayment of senior notes (30,475) -
Other financing activities (5,727) (458)
-------- --------
Net cash provided by financing
activities 14,830 4,539
-------- --------
Effect of foreign currency exchange rates on
cash and cash equivalents (81) (12)
-------- --------
Net increase (decrease) in cash, cash
equivalents and short-term investments 19,428 (16,959)
Cash, cash equivalents and short-term
investments at beginning of period 72,971 41,216
-------- --------
Cash, cash equivalents and short-term
investments at end of period $ 92,399 $ 24,257
======== ========
Free cash flow (2) $ 4,679 $(21,486)
======== ========
- ---------------------------------------------
(1) The cash flow statements presented herein combines our short-term
investments with our cash and cash equivalents in an effort to
present our total unrestricted cash and equivalent balances. In
our quarterly filings with the SEC on Forms 10-Q and 10-K, the
purchase, sale and maturities of our short-term investments will
be presented as activities within the investing activities portion
of the cash flow statements.
(2) We define free cash flow as net cash provided by (used in)
operating activities plus net cash provided by (used in) investing
activities (excluding the purchase, sale and maturities of
short-term investments) as presented below:
Net cash provided by (used in) operating
activities as presented above $ 15,373 $(22,246)
Net cash provided by (used in) investing
activities as presented above (10,694) 760
-------- --------
Free cash flow positive (negative) $ 4,679 $(21,486)
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CONTACT: Equinix, Inc.
Jason Starr, 650-513-7402 (Investor Relations)
jstarr@equinix.com
or
K/F Communications, Inc.
Julie Karbo, 415-255-6505 (Media)
julie@kfcomm.com