Equinix Reports Q2, Buys a Center

FOSTER CITY, Calif. -- Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today reported results for the quarter ended June 30, 2009.

Revenues were $213.2 million for the quarter, a 7% increase over the previous quarter, and a 24% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services, were $205.3 million for the second quarter, a 7% increase over the previous quarter, and a 26% increase over the same quarter last year. Non-recurring revenues were $7.9 million in the quarter, consisting primarily of professional services and installation fees.

Cost of revenues was $118.5 million for the quarter, a 6% increase over the previous quarter and a 16% increase over the same quarter last year. Excluding depreciation, amortization, accretion and stock-based compensation expense of $43.3 million for the quarter, cost of revenues was $75.2 million for the quarter, which the Company refers to as cash cost of revenues, a 5% increase over the previous quarter, and a 14% increase over the same quarter last year. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation expense, divided by revenues, for the quarter were 65%, up from 64% the previous quarter and up from 62% the same quarter last year.

Selling, general and administrative expenses were $53.8 million for the quarter, a 9% increase from the previous quarter and a 5% decrease over the same quarter last year. Excluding depreciation, amortization and stock-based compensation expense of $15.3 million for the quarter, selling, general and administrative expenses were $38.5 million for the quarter, which the Company refers to as cash selling, general and administrative expenses, a 7% increase over the previous quarter, and a 4% increase over the same quarter last year. Interest and other expenses, net, was $12.6 million for the quarter, a 24% decrease over the previous quarter, and a 2% decrease over the same quarter last year.

Net income for the second quarter was $17.4 million as compared to net income of $15.5 million in the previous quarter and net income of $0.7 million in the same quarter last year. This represents a basic net income per share of $0.46 and diluted net income per share of $0.44 based on a weighted average share count of 38.2 million and 39.3 million, respectively, for the second quarter of 2009.

Adjusted EBITDA, defined as income or loss from operations plus depreciation, amortization, accretion, stock-based compensation expense and restructuring charges, for the quarter was $99.5 million, an increase of 9% from the previous quarter, and up 44% from the same quarter last year.

“Equinix delivered another solid quarter and is on the way to another year of significant growth in a difficult environment,” said Steve Smith, president and CEO of Equinix. “While we continue to monitor our leading indicators, given the strong first half performance, and the targeted expansions in key markets, we are well-positioned to deliver strong returns from our expansion decisions.”

Equinix Inc. (Nasdaq: EQIX)