EXHIBIT 99.1
Equinix Reports Third Quarter 2004 Results
FOSTER CITY, Calif.--(BUSINESS WIRE)--Oct. 26, 2004--
-- Increased revenues by 37% over same quarter 2003 and 8% over
previous quarter
-- Increased EBITDA to $10.1 million, up from $1.4 million over
same quarter 2003
-- Added 87 new customers and strong bookings from installed base
-- Raises 2004 revenue and EBITDA guidance
-- Provides 2005 revenue guidance of $200-$210 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 September 30,
2004.
Revenues were $42.4 million for the third quarter ended September
30, 2004 representing a 37% increase over the same quarter last year
and an 8% increase over second quarter. Recurring revenues, consisting
of colocation, interconnection and managed services, were $40.1
million, a 41% increase over the same quarter last year and a 7%
increase over second quarter. Non-recurring revenues, consisting
primarily of professional services and installation fees, were $2.4
million for the quarter ended September 30, 2004, as compared to $2.6
million in the same quarter last year and $2.2 million the previous
quarter.
Cost of revenues were $34.3 million for the third quarter, a 3%
increase over the same quarter last year and in line with the previous
quarter. Cost of revenues, excluding non-cash depreciation,
amortization, accretion and stock-based compensation of $13.6 million,
were $20.7 million for the third quarter, a 5% increase over same
quarter last year and in line with 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 51%, up from 36% the same quarter last
year and 48% the previous quarter.
Selling, general and administrative expenses were $12.7 million
for the third quarter, a 7% increase over the same quarter last year
and a 2% increase over the previous quarter. This included an
approximate $500,000 charge for costs related to liquidation of legacy
subsidiaries in Europe. Selling, general and administrative expenses,
excluding non-cash depreciation, amortization and stock-based
compensation of $1.0 million, were $11.7 million for the third
quarter, a 19% increase over same quarter last year and 4% increase
over the previous quarter.
Net loss for the third quarter was $6.6 million, or a basic and
diluted net loss per share of $0.36. 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 $9.7 million, a 35% improvement over the
previous quarter.
EBITDA, defined as loss from operations less non-cash
depreciation, amortization, accretion and stock-based compensation
expense, for the third quarter was $10.1 million, up 34% over the
previous quarter and up from $1.4 million the same quarter 2003. This
reflects an 84% flow-through rate on incremental revenues in the
quarter.
Capital expenditures in the quarter were $7.6 million, in which
$2.5 million was attributed to ongoing capital expenditures, $3.6
million was attributed to expansion capital expenditures and the
remaining $1.5 million was related to directly billable capital
expenditures to expand an existing U.S. government project.
The company generated cash from operating activities of $10.9
million, a $2.0 million or 23% increase over the previous quarter.
Cash used in investing activities remained relatively flat at $5.5
million. As a result, the company generated $5.4 million in free cash
flow, a $2.1 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 and long-term investments).
As of September 30, 2004, the company's cash, cash equivalents and
investments were $98.8 million, an increase of $6.4 million over the
previous quarter.
Equinix achieved record bookings in the quarter adding 87 new
customers including Bank of Nova Scotia, First Commercial Bank
Limited, Force 10, Korea Telecom, NTT Communications Corporation, and
Tower Insurance Company of New York. The company received additional
orders in the quarter from more than 47% of its existing U.S.
customers. The number of cabinets billing at the end of the quarter
was approximately 10,750, up from approximately 10,100 the previous
quarter. Churn was less than 1% for the quarter on a cabinet basis, or
about 3% on a monthly recurring revenue basis. The company ended the
quarter with 896 customers and a weighted average utilization rate of
43% in its existing IBX centers, including the expansion property in
Ashburn, Virginia. Average monthly recurring revenue per cabinet on a
weighted average basis increased to $1,270 from $1,254 the previous
quarter.
"Third quarter was another great one for Equinix, contributing to
what is shaping up to be a very solid 2004," said Peter Van Camp, CEO
of Equinix. "With this strong momentum, we see ourselves on a path for
market leadership in 2005."
Other Company Developments
-- U.S. interconnection service revenues increased by 10% over
second 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 8,465, a 39% increase over the same quarter last year and a
7% increase over the previous quarter. Ports on the Equinix
GigE Exchange were reported at 313, a 31% increase over the
same quarter last year and a 7% increase over the second
quarter.
-- Of new customer booked revenue in the quarter, over 60% was
derived from new customers outsourcing applications for the
first time.
Business Outlook
Full year revenues for 2004 are expected to be in the range of
$162.5 to $163.5 million, increasing from our previous guidance of
$160.0 to $163.0 million. Total year cash gross margins will be
approximately 49%. Cash selling, general and administrative expenses
are expected to be in the range of $44.5 to $45.5 million, increasing
from previous guidance of $43.5 to $44.5 million. EBITDA for the year
is expected to be between $34.5 and $35.5 million, increasing from our
previous guidance of $32.0 to $35.0 million. Capital expenditures for
2004 are expected to be approximately $22.0 to $23.0 million. Free
cash flow is expected to be greater than $12.0 million, increasing
from our previous guidance of greater than $10.0 million.
For 2005, total revenues are expected to be in the range of $200.0
to $210.0 million. Cash gross margins are expected to be in the range
of 52% to 54%. Cash selling, general and administrative expenses are
expected to be in the range of $48.0 to $50.0 million. EBITDA for the
year is expected to be between $56.0 and $61.0 million, including the
full year impact of approximately $6.0 million of additional cost of
revenues, primarily rent and IBX personnel, associated with the new
Ashburn expansion. Capital expenditures for 2005 are expected to be in
a range of $18.0 to $22.0 million, comprised of $13.0 to $15.0 million
of ongoing capital expenditures and $5.0 to $7.0 million of expansion
capital expenditures for the remaining build out of the Ashburn
expansion. Free cash flow is expected to be greater than $36.0
million. Equinix is expected to become net income positive by the
fourth quarter of 2005, excluding the impact of mandatory expensing of
stock options. This timeline would be accelerated upon the conversion
of the STT convertible secured notes in 2005, provided the stock
trades at $32.12 for 30 consecutive trading days.
The company will discuss its results and guidance on its quarterly
conference call on Tuesday, October 26, 2004, at 8:30 a.m. ET (5:30
a.m. PT). 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. A
replay of the call will be available beginning on Tuesday, October 26,
2004 at 10:30 a.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 September 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 Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
----------- ----------- ----------- -----------
(unaudited)
Recurring revenues $40,057 $28,359 $111,811 $78,461
Non-recurring revenues 2,382 2,560 6,871 6,327
----------- ----------- ----------- -----------
Revenues 42,439 30,919 118,682 84,788
Cost of revenues 34,310 33,314 102,245 95,567
----------- ----------- ----------- -----------
Gross profit (loss) 8,129 (2,395) 16,437 (10,779)
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 4,433 4,823 13,498 14,210
General and
administrative 8,294 7,068 24,544 26,350
----------- ----------- ----------- -----------
Total operating
expenses 12,727 11,891 38,042 40,560
----------- ----------- ----------- -----------
Loss from operations (4,598) (14,286) (21,605) (51,339)
----------- ----------- ----------- -----------
Interest and other
income (expense):
Interest income 335 46 819 182
Interest expense and
other (2,352) (5,478) (8,765) (15,317)
Loss on debt
extinguishment and
conversion - - (16,211) -
----------- ----------- ----------- -----------
Total interest and
other, net (2,017) (5,432) (24,157) (15,135)
----------- ----------- ----------- -----------
Net loss before income
taxes (6,615) (19,718) (45,762) (66,474)
Income taxes - - (200) -
----------- ----------- ----------- -----------
Net loss $(6,615) $(19,718) $(45,962) $(66,474)
=========== =========== =========== ===========
Basic and diluted net
loss per share $(0.36) $(2.12) $(2.65) $(7.52)
=========== =========== =========== ===========
Shares used in
computing basic and
diluted net loss per
share 18,386 9,293 17,370 8,837
=========== =========== =========== ===========
Pro forma basic and
diluted net loss per
share (1) $(0.36) $(2.12) $(1.71) $(7.52)
=========== =========== =========== ===========
Shares used in
computing pro forma
basic and diluted net
loss per share 18,386 9,293 17,370 8,837
=========== =========== =========== ===========
- -----------------------
(1) Pro forma basic and diluted net loss per share excludes the
$16,211,000 loss on debt extinguishment and conversion during the
nine months ended September 30, 2004.
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS --
NON-GAAP PRESENTATION
(in thousands)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
--------- --------- --------- ---------
(unaudited)
Recurring revenues $40,057 $28,359 $111,811 $78,461
Non-recurring revenues 2,382 2,560 6,871 6,327
--------- --------- --------- ---------
Revenues (1) 42,439 30,919 118,682 84,788
Cash cost of revenues (2) 20,659 19,690 61,510 54,175
--------- --------- --------- ---------
Cash gross profit (3) 21,780 11,229 57,172 30,613
--------- --------- --------- ---------
Cash operating expenses (4):
Cash sales and marketing
expenses(5) 3,958 4,244 12,029 12,405
Cash general and
administrative expenses (6) 7,756 5,605 21,892 19,613
--------- --------- --------- ---------
Total cash operating
expenses 11,714 9,849 33,921 32,018
--------- --------- --------- ---------
EBITDA (7) (8) 10,066 1,380 23,251 (1,405)
--------- --------- --------- ---------
Cash interest and other income
(expense) (9):
Interest income 335 46 819 182
Cash interest expense and
other (10) (657) (2,570) (2,719) (8,072)
Cash loss on debt
extinguishment and
conversion (11) - - (2,505) -
Income taxes - - (200) -
--------- --------- --------- ---------
Total cash interest and
other, net (322) (2,524) (4,605) (7,890)
--------- --------- --------- ---------
Cash net income (loss) (12) $9,744 $(1,144) $18,646 $(9,295)
========= ========= ========= =========
Cash gross margins (13) 51% 36% 48% 36%
========= ========= ========= =========
- -------------------------------
(1) The geographic split of our revenues is presented below:
U.S. revenues $36,779 $25,764 $102,893 $71,525
Asia-Pacific revenues 5,660 5,155 15,789 13,263
--------- --------- --------- ---------
Revenues $42,439 $30,919 $118,682 $84,788
========= ========= ========= =========
(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 $34,310 $33,314 $102,245 $95,567
Depreciation, amortization
and accretion expense (13,638) (13,640) (40,700) (41,343)
Stock-based compensation
expense (13) 16 (35) (49)
--------- --------- --------- ---------
Cash cost of revenues $20,659 $19,690 $61,510 $54,175
========= ========= ========= =========
(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 $4,433 $4,823 $13,498 $14,210
Depreciation and amortization
expense (469) (518) (1,418) (1,562)
Stock-based compensation
expense (6) (61) (51) (243)
--------- --------- --------- ---------
Cash sales and marketing
expenses $3,958 $4,244 $12,029 $12,405
========= ========= ========= =========
(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 $8,294 $7,068 $24,544 $26,350
Depreciation and amortization
expense (398) (1,016) (1,719) (4,869)
Stock-based compensation
expense (140) (447) (933) (1,868)
--------- --------- --------- ---------
Cash general and
administrative expenses $7,756 $5,605 $21,892 $19,613
========= ========= ========= =========
(7) We define EBITDA as loss from operations less depreciation,
amortization, accretion and stock-based compensation expense as
presented below:
Loss from operations $(4,598) $(14,286) $(21,605) $(51,339)
Depreciation, amortization
and accretion expense 14,505 15,174 43,837 47,774
Stock-based compensation
expense 159 492 1,019 2,160
--------- --------- --------- ---------
EBITDA $10,066 $1,380 $23,251 $(1,405)
========= ========= ========= =========
(8) The geographic split of our EBITDA is presented below:
U.S. loss from operations (A) $(3,028) $(10,761) $(15,230) $(38,988)
U.S. depreciation,
amortization and accretion
expense 12,963 13,431 39,333 42,285
U.S. stock-based compensation
expense 159 492 1,019 2,160
--------- --------- --------- ---------
U.S. EBITDA 10,094 3,162 25,122 5,457
--------- --------- --------- ---------
Asia-Pacific loss from
operations (1,570) (3,525) (6,375) (12,351)
Asia-Pacific depreciation,
amortization and accretion
expense 1,542 1,743 4,504 5,489
Asia-Pacific stock-based
compensation expense - - - -
--------- --------- --------- ---------
Asia-Pacific EBITDA (28) (1,782) (1,871) (6,862)
--------- --------- --------- ---------
EBITDA $10,066 $1,380 $23,251 $(1,405)
========= ========= ========= =========
(A) U.S. loss from operations for the three and nine months ended
September 30, 2004, included a $512,000 charge for costs
related to the liquidation of legacy subsidiaries in Europe.
(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 $(2,352) $(5,478) $(8,765) $(15,317)
Amortization of debt
discounts and debt issuance
costs 437 1,722 2,251 3,921
Non-cash interest on
convertible secured notes 1,258 1,186 3,795 3,324
--------- --------- --------- ---------
Non-cash interest expense 1,695 2,908 6,046 7,245
--------- --------- --------- ---------
Cash interest expense and
other $(657) $(2,570) $(2,719) $(8,072)
========= ========= ========= =========
(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) $(6,615) $(19,718) $(45,962) $(66,474)
Depreciation, amortization
and accretion expense 14,505 15,174 43,837 47,774
Stock-based compensation
expense 159 492 1,019 2,160
Non-cash interest expense
(defined above) 1,695 2,908 6,046 7,245
Non-cash loss on debt
extinguishment and
conversion (defined above) - - 13,706 -
--------- --------- --------- ---------
Cash net income (loss) $9,744 $(1,144) $18,646 $(9,295)
========= ========= ========= =========
(13)We define cash gross margins as cash gross profit divided by
revenues.
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets September 30, December 31,
2004 2003
------------- -------------
(unaudited)
Cash, cash equivalents and investments $98,813 $72,971
Accounts receivable, net 12,875 10,178
Property and equipment, net 318,234 343,554
Goodwill and other intangible assets, net 22,050 23,509
Debt issuance costs, net 3,197 5,954
Other assets 12,373 8,366
------------- -------------
Total assets $467,542 $464,532
============= =============
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $18,568 $16,426
Accruedproperty and equipment 3,005 2,454
Accrued interest payable 2,367 1,114
Debt facilities and capital lease
obligations - 3,412
Credit facility - 34,281
Senior notes - 29,220
Convertible secured notes 33,064 31,683
Convertible subordinated debentures 86,250 -
Deferred rent 24,457 20,283
Other liabilities 8,634 5,582
------------- -------------
Total liabilities 176,345 144,455
------------- -------------
Preferred stock 2 2
Common stock 18 15
Additional paid-in capital 772,115 755,698
Deferred stock-based compensation (355) (1,032)
Accumulated other comprehensive income 1,183 1,198
Accumulated deficit (481,766) (435,804)
------------- -------------
Total stockholders' equity 291,197 320,077
------------- -------------
Total liabilities and stockholders'
equity $467,542 $464,532
============= =============
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
(in thousands)
Nine Months Ended
Sept. 30, Sept. 30,
2004 2003
--------- ---------
(unaudited)
Cash flows from operating activities:
Net loss $(45,962) $(66,474)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation, amortization and accretion 43,837 47,774
Amortization of stock-based compensation 1,019 2,160
Non-cash interest expense 6,046 7,245
Loss on debt extinguishment and conversion 16,211 -
Other reconciling items 3,959 2,492
Changes in operating assets and liabilities:
Accounts receivable (2,591) (194)
Accounts payable and accrued expenses 2,903 (1,263)
Accrued restructuring charges (761) (10,617)
Accrued merger and financing costs - (4,478)
Accrued interest payable (60) (990)
Other assets and liabilities 1,685 4,001
--------- ---------
Net cash provided by (used in)
operating activities 26,286 (20,344)
--------- ---------
Cash flows from investing activities:
Purchases of property and equipment (16,783) (2,889)
Accrued property and equipment 551 -
Other investing activities - 2,206
--------- ---------
Net cash provided by (used in)
investing activities (16,232) (683)
--------- ---------
Cash flows from financing activities:
Proceeds from warrants, stock options and
employee stock purchase plan 3,631 1,521
Proceeds from convertible secured notes - 10,000
Proceeds from convertible subordinated
debentures 86,250 -
Repayment of debt facilities and capital lease
obligations (3,527) (5,102)
Repayment of credit facility (34,281) (990)
Repayment of senior notes (30,475) -
Other financing activities (5,747) (458)
--------- ---------
Net cash provided by financing
activities 15,851 4,971
--------- ---------
Effect of foreign currency exchange rates on cash
and cash equivalents (63) 63
--------- ---------
Net increase (decrease) in cash, cash equivalents
and investments 25,842 (15,993)
Cash, cash equivalents and investments at beginning
of period 72,971 41,216
--------- ---------
Cash, cash equivalents and investments at end of
period $98,813 $25,223
========= =========
Free cash flow (2) $10,054 $(21,027)
========= =========
- ---------------------------------------------------
(1) The cash flow statements presented herein combine our short-term
and long-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 and
long-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 and long-term investments) as presented below:
Net cash provided by (used in) operating
activities as presented above $26,286 $(20,344)
Net cash provided by (used in) investing
activities as presented above (16,232) (683)
--------- ---------
Free cash flow positive (negative) $10,054 $(21,027)
========= =========
CONTACT: Equinix, Inc.
Jason Starr, 650-513-7402 (investor relations)
jstarr@equinix.com
or
K/F Communications, Inc.
Dave Fonkalsrud, 415-255-6506 (media)
dave@kfcomm.com