EQUINIX INC - FORM 8-K - EX-99.1 - HISTORICAL FINANCIAL RESULTS - October 16, 2012

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Exhibit 99.1

 

Worldwide Corporate Headquarters    LOGO
One Lagoon Drive   
4th Floor   
Redwood City, CA 94065   
www.equinix.com   
+1 650 598 6000 MAIN   
+1 650 598 6900 FAX   

As announced on September 4, 2012, Equinix plans to sell 16 International Business Exchange data centers (the “16 Data Centers”) located throughout the United States to an investment group consisting of 365 Main, Crosslink Capital and Housatonic Partners in a transaction valued at approximately $75 million. After the close of the transaction, 365 Main will own and manage the 16 Data Centers, led by industry veterans Chris Dolan, CEO, and Jamie McGrath, COO. With the announcement of this transaction, the financial results derived from these 16 Data Centers will be excluded from Equinix’s continuing operations for the quarter and will be reflected as discontinued operations. As a result, Equinix will retroactively adjust its financial results for all applicable prior periods beginning April 30, 2010, the date the company acquired these assets, to reflect them as discontinued operations as required under accounting principles generally accepted in the United States of America.

The transaction is expected to close in Q4 2012, subject to customary closing conditions. However, there can be no assurances that the transaction will close in Q4 2012, or at all.

EQUINIX, INC.

SELECTED FINANCIAL DATA OF THE 16 DATA CENTERS HELD FOR SALE

(in thousands)

(unaudited)

The following table presents certain historical financial results for the 16 data centers held for sale as of September 30, 2012 (“the 16 Data Centers”). The 16 Data Centers were originally acquired on April 30, 2010. The 16 Data Centers are classified as held-for-sale as of September 30, 2012 and will be reflected as discontinued operations in Equinix’s statements of operations for the historical periods noted below and, prospectively, until the sale is closed. Equinix will provide details for the quarter ended September 30, 2012 on the October 30th, 2012 earnings call.

 

     Three Months Ended  
     June 30,
2012		     March 31,
2012		     December 31,
2011		     September 30,
2011		     June 30,
2011		     March 31,
2011		     December 31,
2010		     September 30,
2010		     June 30,
2010 (2)		  

Recurring revenues

   $ 8,790      $ 8,731      $ 8,969      $ 9,137      $ 9,140      $ 8,862      $ 8,905      $ 8,759      $ 5,968   

Non-recurring revenues

      225        224        227        256        249        218        185        194        109   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenues

      9,015        8,955        9,196        9,393        9,389        9,080        9,090        8,953        6,077   

Cost of revenues

      7,903        7,981        8,069        8,429        9,325        7,967        8,642        8,331        5,538   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      1,112        974        1,127        964        64        1,113        448        622        539   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

      12 %      11 %      12 %      10 %      1 %      12 %      5 %      7 %      9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash cost of revenues (1)

      4,223        4,225        4,309        4,593        5,467        4,131        4,522        4,578        3,206   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash gross profit

    $ 4,792      $ 4,730      $ 4,887      $ 4,800      $ 3,922      $ 4,949      $ 4,568      $ 4,375      $ 2,871   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash gross margin

      53 %      53 %      53 %      51 %      42 %      55 %      50 %      49 %      47 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

 

Cost of revenues

    $ 7,903      $ 7,981      $ 8,069      $ 8,429      $ 9,325      $ 7,967      $ 8,642      $ 8,331      $ 5,538   

Depreciation, amortization and accretion expense

      (3,575 )      (3,678 )      (3,663 )      (3,731 )      (3,755 )      (3,746 )      (3,954 )      (3,704 )      (2,301 ) 

Stock-based compensation expense

      (105 )      (78 )      (97 )      (105 )      (103 )      (90 )      (166 )      (49 )      (31 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash cost of revenues

    $ 4,223      $ 4,225      $ 4,309      $ 4,593      $ 5,467      $ 4,131      $ 4,522      $ 4,578      $ 3,206   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(2) The 16 Data Centers were acquired on April 30, 2010. As a result, financial results for the three months ended June 30, 2010 include only two months of activity.

EQUINIX INC Reports