Equinix Reports First Quarter 2005 Results

Equinix, Inc. (www.equinix.com), a provider of network-neutral data centers and Internet exchange services, today reported its quarterly results for the period ended March 31, 2005.

Revenues were $48.7 million for the first quarter representing a 32% increase over the same quarter last year and an 8% increase over the previous quarter.

Recurring revenues, consisting of colocation, interconnection and managed services, were $45.9 million, a 33% increase over the same quarter last year and an 8% increase over the previous quarter.

Cost of revenues were $36.9 million for the first quarter, a 9% increase over the same quarter last year and a 6% increase over the previous quarter. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $15.0 million, were $21.9 million for the first quarter, an 8% increase over same quarter last year and a 5% increase over the previous quarter.

Selling, general and administrative expenses were $15.3 million for the first quarter, a 19% increase over the same quarter last year and a 17% increase over the previous quarter.

Net loss for the first quarter was $5.8 million, or a basic and diluted net loss per share of $0.26. The Company's cash net income, defined as net income (loss) less depreciation, amortization, accretion, stock-based compensation expense, restructuring charges and non-cash interest expense, for the quarter was $12.9 million, a 9% improvement over the previous quarter.

EBITDA, defined as loss from operations less depreciation, amortization, accretion, stock-based compensation expense and restructuring charges, for the first quarter was $14.3 million, up 16% over the previous quarter and up from $5.7 million the same quarter 2004.

The company generated cash from operating activities of $15.4 million, a $4.8 million or 45% increase over the previous quarter. Cash used in investing activities was $6.2 million, an increase of $1.7 million over the previous quarter.

As of March 31, 2005, the company's cash, cash equivalents and investments were $118.1 million, an increase of $10.0 million over the previous quarter.

"First quarter was a strong start to 2005. Particularly pleasing was the incremental recurring revenue growth achieved, which was the best we've seen to date," said Peter Van Camp, CEO of Equinix.

On a same IBX basis (defined as IBX centers which have been available for customer installs for at least four full quarters), revenue was $48.5 million; cost of revenues were $35.3 million; cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation were $21.1 million and cash gross margins for the quarter were 56%. EBITDA on a same IBX basis was $14.9 million.

Based on a total cabinet capacity of 26,100, the number of cabinets billing at the end of the quarter was approximately 11,700, or 45%, up from approximately 11,100 the previous quarter, and includes the new Silicon Valley IBX, which opened in March 2005.

For the second quarter 2005, the company expects revenue to be in the range of $51.5 to $52.5 million. Cash gross margins are expected to be in the range of 52 - 53%. Cash selling, general and administrative expenses are expected to be in the range of $12.5 to $13.5 million.

For the full year of 2005, revenues are expected to be in the range of $209.0 to $215.0 million. Cash gross margins are expected to be in the range of 53 - 56%. Cash selling, general and administrative expenses are expected to be in the range of $51.0 to $53.0 million.

The company will discuss its results and guidance on its quarterly conference call on Wednesday, April 27, 2005, at 5:30 p.m. ET (2:30 p.m. PT). To hear the conference call, please dial 1-773-799-3263 (domestic and international) and reference the passcode (EQIX).