Equinix Reports Second Quarter 2005 Results.FOSTER CITY, Calif. -- Equinix Equinix, Inc. NASDAQ: EQIX, is a U.S. public corporation that provides carrier-neutral datacenters and internet exchanges. Services Equinix network-neutral data center (IBX or "Internet Business Exchange") and Internet exchange services include premium colocation, IP , Inc. (Nasdaq:EQIX): --Increased revenues by 33% over same quarter 2004 --Increased EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become to $16.1 million, up from $7.5 million in same quarter 2004 --Continues expansion efforts with acquisitions of centers in Silicon Valley and recently announced Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. center --Added 70 customers including D.E. Shaw, Fox Sports Interactive Media, Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. Asia Pacific Ltd, NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. and Salesforce.com Salesforce.com (NYSE: CRM) is an on-demand Customer Relationship Management (CRM) solution vendor. History Origins Salesforce.com was founded in 1999 by former Oracle executive Marc Benioff. Equinix, Inc. (Nasdaq:EQIX), the leading provider of network-neutral data centers and Internet exchange See IXP and NAP. services, today reported its quarterly results for the period ended June June: see month. 30, 2005. Revenues were $52.5 million for the second quarter, a 33% increase over the same quarter last year and an 8% increase over the previous quarter. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues, consisting of colocation See co-location. , interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. and managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality , were $49.4 million, a 33% increase over the same quarter last year and an 8% increase over the previous quarter. Non-recurring revenues, consisting primarily of professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and installation fees, were $3.1 million for the quarter, as compared to $2.1 million in the same quarter last year and $2.8 million the previous quarter. Cost of revenues were $38.8 million for the second quarter, a 14% increase over the same quarter last year and a 5% increase over the previous quarter. Cost of revenues, excluding depreciation, amortization, accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the and stock-based compensation of $15.5 million, were $23.3 million for the second quarter, a 13% increase over same quarter last year and a 6% increase over the previous quarter. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 56%, up from 48% the same quarter last year and 55% the previous quarter. Selling, general and administrative expenses, including stock-based compensation of $2.5 million, were $16.2 million for the second quarter, a 30% increase over the same quarter last year and a 6% increase over the previous quarter. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $3.1 million, were $13.1 million for the second quarter, a 16% increase over same quarter last year and a 6% increase over the previous quarter. Net loss for the second quarter, including stock-based compensation expense of $2.5 million, was $3.4 million. This represents a basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net loss per share of $0.14 based on a weighted average share count of 23.7 million or a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss per share of $0.04 excluding the stock-based compensation expense. The Company's cash net income, defined as net income (loss) less depreciation, amortization, accretion, stock-based compensation expense, restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and non-cash interest expense for the quarter was $15.4 million, a 19% improvement over the previous quarter. EBITDA, defined as loss from operations less depreciation, amortization, accretion, stock-based compensation expense and restructuring charges, for the second quarter was $16.1 million, up 12% over the previous quarter and up from $7.5 million the same quarter 2004. Capital expenditures in the quarter were $9.9 million, of which $5.4 million was attributed to ongoing capital expenditures and $4.5 million was attributed to expansion capital expenditures. The company generated cash from operating activities of $18.1 million, a $2.8 million or 18% increase over the previous quarter. Cash used in investing activities was $6.7 million, an increase of $0.6 million over the previous quarter. As a result, the company generated $11.4 million in free cash flow, a $2.2 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 purchases, sales and maturities of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments). As of June 30, 2005, the company's cash, cash equivalents and investments were $132.0 million, an increase of $13.9 million over the previous quarter. "Equinix delivered strong results in the second quarter contributing to a solid first half for the company," said Peter Van Camp, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Equinix. "Significant in this was the level of our bookings and the quality of our new customers. This was a new high for the company, setting up a second half of continued strong growth." Other Company Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. & Developments --On a same IBX IBX Independence Blue Cross (Health Insurance Company) IBX Internet Business Exchange IBX Integrated Business Exchange IBX Inner Banks (Foundation of Renewal for Eastern North Carolina) basis (defined as IBX centers which have been available for new customer installs for at least four full quarters), revenue was $51.3 million; cost of revenues were $35.6 million; cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation, were $21.4 million and cash gross margins for the quarter were 58%. EBITDA on a same IBX basis was $17.0 million. --Equinix added 70 new customers in the quarter including AON Warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. Group, Coral Wireless, D.E. Shaw, eHarmony eHarmony is a venture capital-funded,[1] marriage-oriented matchmaking website. The company advertises through television and the Internet and requires users to complete a detailed compatibility questionnaire. eHarmony was co-founded by Dr. .com, Fox Sports Interactive Media, Ikea Asia Pacific Pte Ltd PTE LTD Private Limited , Merrill Lynch Asia Pacific Ltd, MySpace The most popular social networking site on the Web, especially for teenagers and people under 30. Founded in 2003 by Tom Anderson and Chris DeWolfe, MySpace was acquired by Rupert Murdoch's News Corporation via its $500 million purchase of parent company Intermix in 2005. .com, NASA, Salesforce.com, Samsung Networks and Sandisk This article is about SanDisk Corporation. For Computer Storage Device in Storage Area Network (SAN), see Storage Area Network. SanDisk Corporation (NASDAQ: SNDK), formerly SunDisk . --Based on a total cabinet capacity of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 26,100, the number of cabinets billing at the end of the quarter was approximately 12,400, or 47%, up from approximately 11,700 the previous quarter. On a weighted average basis, the number of cabinets billing was approximately 12,100, which represents 46%. --U.S. interconnection revenues were 22% of U.S. recurring revenues for the quarter. Interconnection services represent 20% of total worldwide recurring revenues. Business Outlook For the third quarter 2005, the company expects revenues to be in the range of $55.5 to $56.5 million. Cash gross margins are expected to be approximately 56%. Cash selling, general and administrative expenses are expected to be in the range of $13.0 to $14.0 million. EBITDA is expected to be between $17.0 and $18.0 million as the company continues to invest in growing the business. Net loss is expected to be in the range of $2.0 to $3.0 million. This includes approximately $1.8 million of stock-based compensation expense primarily attributed to the restricted stock grants, based on recent stock trading levels of approximately $45.00 per share, and approximately $1.9 million of interest expense. The weighted average shares outstanding will be approximately 24.0 million. Capital expenditures are estimated to be in the range of $8.0 to $10.0 million, including approximately $5.0 million in capital required for improvements to the newly acquired Silicon Valley and Chicago IBX centers. For the full year of 2005, revenues are expected to be in the range of $216.0 to $219.0 million. Cash gross margins are expected to be in the range of 55-56%. Cash selling, general and administrative expenses are expected to be approximately $53.0 million. EBITDA is expected to be between $66.0 and $68.0 million. Net loss is expected to be in the range of $13.0 to $15.0 million. This includes approximately $8.5 million of stock-based compensation expense primarily attributed to the restricted stock grants, based on recent stock trading levels of approximately $45.00 per share, and $9.0 million of interest expense. The weighted average shares outstanding will be approximately 23.5 million. Capital expenditures for 2005 are expected to be in a range of $40.0 to $45.0 million, comprised of $17.0 to $18.0 million of ongoing capital expenditures and $23.0 to $27.0 million of expansion capital expenditures. The company will discuss its results and guidance on its quarterly conference call on Wednesday Wednesday: see week. , July July: see month. 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). A simultaneous live Webcast of the call will be available over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.equinix.com, under the Investor Relations Investor relations The process by which the corporation communicates with its investors. heading. A replay of the call will be available beginning on Wednesday, July 27, 2005 at 7:30 p.m. (ET) by dialing 203-369-1928. In addition, the Webcast will be available for replay on the company's Web site at www.equinix.com. No password A secret word or code used to serve as a security measure against unauthorized access to data. It is normally managed by the operating system or DBMS. However, the computer can only verify the legitimacy of the password, not the legitimacy of the user. See NCSC. is required for either method of replay. A reconciliation between GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). information and non-GAAP information contained in this press release is provided in a table immediately following the Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Operations - GAAP Presentation. This reconciliation is also available at www.equinix.com under the Investor Relations heading. About Equinix Equinix is the leading global provider of network-neutral data centers and Internet exchange services for enterprises, content companies, systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. and network services providers. Through the company's 15 Internet Business Exchange(TM) (IBX(R)) centers in five countries, customers can directly interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. with every major global network and ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. for their critical peering, transit transit, in astronomy, passage of a body across a meridian or passage of a small body across the visible disk of a larger one. (The passage of a large body across a smaller one is called an eclipse or occultation. 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. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 recently-acquired data centers; competition from existing and new competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; the ability to generate sufficient cash flow or otherwise obtain funds to repay outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. ; 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information contained in this press release. Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc. Non-GAAP Financial Measures Equinix continues to provide all information required in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (also known as cash selling, general and administrative expenses or cash SG&A), cash interest expense and cash net income (loss) and free cash flow to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain non-cash or non-recurring items that it believes are not good indicators of the company's current or future operating performance. These non-cash or non-recurring 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 The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. and conversion and restructuring charges (there were no such charges or losses in 2005). Recent legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 or non-recurring items in order for Equinix's lenders, investors, and industry analysts who review and report on the company, to better evaluate the company's operating performance and cash spending levels relative to its industry sector and competitor base. Equinix excludes depreciation expense as these 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 long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. 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 indicative: see mood. 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 Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , as it represents a non-cash cost that may not recur and is not a good indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of the company's current or future operating performance. Equinix excludes accretion expense In accounting, accretion expense is the expense created when updating the present value(PV) of a financial instrument. For example, if one originally recognizes the present value of a liability at $650, which has a future value (FV) of $1000, every year one must increase the , both as it relates to its asset retirement obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. as well as its accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. restructuring charge liability, as these expenses represent costs, which Equinix believes are not meaningful in evaluating the Company's current operations. Equinix excludes non-cash stock-based compensation expense as it represents expense attributed to stock awards 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 restructuring charges and the non-cash portion of the loss on debt extinguishment and conversion. The restructuring charges relate to the company's decision to exit leases for excess space adjacent to several of our IBX centers, which we do not intend to build out now or in the future. The non-cash portion of the loss on debt extinguishment and conversion, which represents the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the unamortized debt issuance costs and discounts associated with the debt facilities extinguished ex·tin·guish tr.v. ex·tin·guished, ex·tin·guish·ing, ex·tin·guish·es 1. To put out (a fire, for example); quench. 2. To put an end to (hopes, for example); destroy. See Synonyms at abolish. 3. or converted as no cash was expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. in the periods presented for such write-offs nor will there be in the future. Management believes such restructuring charges and 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 Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Management believes that the inclusion of these non-GAAP financial measures provide consistency Consistency can refer to:
v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. 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 and six months ended June 30, 2005 and 2004, 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, March 31, June 30, June 30, June 30,
2005 2005 2004 2005 2004
-------- --------- ----------- -------- ---------
(unaudited)
Recurring
revenues $49,431 $45,901 $37,271 $95,332 $71,754
Non-recurring
revenues 3,048 2,783 2,152 5,831 4,489
-------- --------- ----------- -------- ---------
Revenues 52,479 48,684 39,423 101,163 76,243
Cost of
revenues 38,811 36,873 34,150 75,684 67,935
-------- --------- ----------- -------- ---------
Gross profit 13,668 11,811 5,273 25,479 8,308
-------- --------- ----------- -------- ---------
Operating
expenses:
Sales and
marketing 5,145 4,819 4,423 9,964 9,065
General and
administrative 11,027 10,489 8,008 21,516 16,250
-------- --------- ----------- -------- ---------
Total operating
expenses 16,172 15,308 12,431 31,480 25,315
-------- --------- ----------- -------- ---------
Loss from
operations (2,504) (3,497) (7,158) (6,001) (17,007)
-------- --------- ----------- -------- ---------
Interest and other
income (expense):
Interest income 902 667 242 1,569 484
Interest expense
and other (1,945) (2,459) (2,283) (4,404) (6,413)
Loss on debt
extinguishment
and conversion - - - - (16,211)
-------- --------- ----------- -------- ---------
Total interest
and other, net (1,043) (1,792) (2,041) (2,835) (22,140)
-------- --------- ----------- -------- ---------
Net loss before
income taxes (3,547) (5,289) (9,199) (8,836) (39,147)
Income
taxes 116 (505) (6) (389) (200)
-------- --------- ----------- -------- ---------
Net
loss $(3,431) $(5,794) $(9,205) $(9,225) $(39,347)
======== ========= =========== ======== =========
Basic and diluted
net loss per share $(0.14) $(0.26) $(0.51) $(0.40) $(2.33)
======== ========= =========== ======== =========
Shares used in
computing basic and
diluted net loss
per share 23,727 21,898 18,191 22,964 16,862
======== ========= =========== ======== =========
Pro forma basic and
diluted net loss
per share (1) $(0.04) $(0.15) $(0.50) $(0.19) $(1.32)
======== ========= =========== ======== =========
Shares used in
computing pro
forma basic and
diluted net
loss per share 23,727 21,898 18,191 22,964 16,862
======== ========= =========== ======== =========
--------------------
(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 and stock-based compensation
expense for all periods presented as follows:
Cost of
revenues $- $- $2 $- $22
Sales and
marketing 454 447 15 901 45
General and
administrative 2,035 1,997 166 4,032 793
-------- --------- ----------- -------- ---------
Stock-based
compensation $2,489 $2,444 $183 $4,933 $860
======== ========= =========== ======== =========
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS -
NON-GAAP PRESENTATION
(in thousands)
Three Months Ended
-------------------------------
June 30, March 31, June 30,
2005 2005 2004
-------- ---------- -----------
(unaudited)
Recurring revenues $49,431 $45,901 $37,271
Non-recurring revenues 3,048 2,783 2,152
-------- ---------- -----------
Revenues (1) 52,479 48,684 39,423
Cash cost of revenues (2) 23,317 21,929 20,631
-------- ---------- -----------
Cash gross profit (3) 29,162 26,755 18,792
-------- ---------- -----------
Cash operating expenses (4):
Cash sales and marketing
expenses(5) 4,676 4,357 3,933
Cash general and administrative
expenses (6) 8,431 8,061 7,331
-------- ---------- -----------
Total cash operating
expenses (7) 13,107 12,418 11,264
-------- ---------- -----------
EBITDA (8) 16,055 14,337 7,528
-------- ---------- -----------
Cash interest and other income
(expense) (9):
Interest income 902 667 242
Cash interest expense and other
(10) (1,677) (1,554) (547)
Cash loss on debt extinguishment
and conversion (11) - - -
Income taxes 116 (505) (6)
-------- ---------- -----------
Total cash interest and
other, net (659) (1,392) (311)
-------- ---------- -----------
Cash net income (12) $15,396 $12,945 $7,217
======== ========== ===========
Cash gross margins (13) 56% 55% 48%
======== ========== ===========
EBITDA flow-through rate (14) 45% 53% 72%
======== ========== ===========
--------------------------------------
(1) The geographic split of our revenues is
presented below:
U.S. revenues $45,384 $42,016 $34,093
Asia-Pacific revenues 7,095 6,668 5,330
-------- ---------- -----------
Revenues $52,479 $48,684 $39,423
======== ========== ===========
Revenues on a services basis is
presented below:
Colocation $36,105 $33,236 $27,205
Interconnection 9,845 9,324 7,383
Managed infrastructure 3,481 3,341 2,683
-------- ---------- -----------
Recurring revenues 49,431 45,901 37,271
Non-recurring revenues 3,048 2,783 2,152
-------- ---------- -----------
Revenues $52,479 $48,684 $39,423
======== ========== ===========
New IBX centers are IBX centers which have not been available for
customer installs for at least four full quarters. Revenues
on a same IBX versus new IBX basis is presented below:
Same IBX centers $51,282 $48,457 $37,996
New IBX centers 1,197 227 1,427
-------- ---------- -----------
Revenues $52,479 $48,684 $39,423
======== ========== ===========
(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 $38,811 $36,873 $34,150
Depreciation, amortization and
accretion expense (15,494) (14,944) (13,517)
Stock-based compensation expense - - (2)
-------- ---------- -----------
Cash cost of revenues $23,317 $21,929 $20,631
======== ========== ===========
The geographic split of our cash cost of revenues is
presented below:
U.S. cash cost of revenues $19,339 $18,061 $16,824
Asia-Pacific cash cost of
revenues 3,978 3,868 3,807
-------- ---------- -----------
Cash cost of revenues $23,317 $21,929 $20,631
======== ========== ===========
New IBX centers are IBX centers which have not been available for
customer installs for at least four full quarters. Cost of
revenues and cash cost of revenues on a same IBX versus new IBX
basis is presented below:
Same IBX centers-cash cost of
revenues $21,390 $21,091 $18,821
Same IBX centers-depreciation,
amortization and accretion
expense 14,183 14,196 13,263
Same IBX centers-stock-based
compensation expense - - 2
-------- ---------- -----------
Same IBX centers cost of
revenues 35,573 35,287 32,086
-------- ---------- -----------
New IBX centers-cash cost of
revenues 1,927 838 1,810
New IBX centers-depreciation,
amortization and accretion
expense 1,311 748 254
New IBX centers-stock-based
compensation expense - - -
-------- ---------- -----------
New IBX centers cost of
revenues 3,238 1,586 2,064
-------- ---------- -----------
Cost of revenues $38,811 $36,873 $34,150
======== ========== ===========
(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 $5,145 $4,819 $4,423
Depreciation and amortization
expense (15) (15) (475)
Stock-based compensation expense (454) (447) (15)
-------- ---------- -----------
Cash sales and marketing
expenses $4,676 $4,357 $3,933
======== ========== ===========
(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 $11,027 $10,489 $8,008
Depreciation and amortization
expense (561) (431) (511)
Stock-based compensation expense (2,035) (1,997) (166)
-------- ---------- -----------
Cash general and
administrative expenses $8,431 $8,061 $7,331
======== ========== ===========
(7) Our cash operating expenses, or cash SG&A, as defined above, is
presented below:
Cash sales and marketing expenses $4,676 $4,357 $3,933
Cash general and administrative
expenses 8,431 8,061 7,331
-------- ---------- -----------
$13,107 $12,418 $11,264
======== ========== ===========
The geographic split of our cash operating expenses, or cash
SG&A, is presented below:
U.S. cash SG&A $10,486 $9,908 $8,911
Asia-Pacific cash SG&A 2,621 2,510 2,353
-------- ---------- -----------
Cash SG&A $13,107 $12,418 $11,264
======== ========== ===========
(8) We define EBITDA as loss from operations less depreciation,
amortization, accretion, stock-based compensation expense
and restructuring charges as presented below:
Loss from operations $(2,504) $(3,497) $(7,158)
Depreciation, amortization and
accretion expense 16,070 15,390 14,503
Stock-based compensation expense 2,489 2,444 183
Restructuring charges - - -
-------- ---------- -----------
EBITDA $16,055 $14,337 $7,528
======== ========== ===========
The geographic split of our EBITDA is presented
below:
U.S. loss from operations $(1,871) $(2,614) $(4,800)
U.S. depreciation, amortization
and accretion expense 14,941 14,217 12,975
U.S. stock-based compensation
expense 2,489 2,444 183
U.S. restructuring charges - - -
-------- ---------- -----------
U.S. EBITDA 15,559 14,047 8,358
-------- ---------- -----------
Asia-Pacific loss from operations (633) (883) (2,358)
Asia-Pacific depreciation,
amortization and accretion
expense 1,129 1,173 1,528
Asia-Pacific stock-based
compensation expense - - -
Asia-Pacific restructuring
charges - - -
-------- ---------- -----------
Asia-Pacific EBITDA 496 290 (830)
-------- ---------- -----------
EBITDA $16,055 $14,337 $7,528
======== ========== ===========
New IBX centers are IBX centers which have not been available for
customer installs for at least four full quarters. EBITDA
on a same IBX versus new IBX basis is presented below:
Same IBX centers-loss from
operations $(232) $(1,955) $(6,479)
Same IBX centers-depreciation,
amortization and accretion
expense 14,759 14,642 14,249
Same IBX centers-stock-based
compensation expense 2,489 2,444 183
Same IBX centers-restructuring
charges - - -
-------- ---------- -----------
Same IBX center EBITDA 17,016 15,131 7,953
-------- ---------- -----------
New IBX centers-loss from
operations (2,272) (1,542) (679)
New IBX centers-depreciation,
amortization and accretion
expense 1,311 748 254
New IBX centers-stock-based
compensation expense - - -
New IBX centers-restructuring
charges - - -
-------- ---------- -----------
New IBX center EBITDA (961) (794) (425)
-------- ---------- -----------
EBITDA $16,055 $14,337 $7,528
======== ========== ===========
(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 $(1,945) $(2,459) $(2,283)
Amortization of debt discounts
and debt issuance costs 198 198 505
Non-cash interest on convertible
secured notes 70 707 1,231
-------- ---------- -----------
Non-cash interest expense 268 905 1,736
-------- ---------- -----------
Cash interest expense and
other $(1,677) $(1,554) $(547)
======== ========== ===========
(11) Loss on debt extinguishment and
conversion $- $- $-
Non-cash write-off of debt
issuance costs and discounts - - -
-------- ---------- -----------
Non-cash loss on debt
extinguishment and
conversion - - -
-------- ---------- -----------
Cash loss on debt
extinguishment and
conversion $- $- $-
======== ========== ===========
(12) We define cash net income as net income (loss) less depreciation,
amortization, accretion, stock-based compensation
expense, restructuring charges, non-cash interest expense and
non-cash loss on debt extinguishment and conversion as
presented below:
Net income (loss) $(3,431) $(5,794) $(9,205)
Depreciation, amortization and
accretion expense 16,070 15,390 14,503
Stock-based compensation expense 2,489 2,444 183
Restructuring charges - - -
Non-cash interest expense
(defined above) 268 905 1,736
Non-cash loss on debt
extinguishment and conversion
(defined above) - - -
-------- ---------- -----------
Cash net income $15,396 $12,945 $7,217
======== ========== ===========
(13) We define cash gross margins as cash gross profit
divided by revenues.
Our cash gross margins by geographic region
is presented below:
U.S. cash gross margins 57% 57% 51%
======== ========== ===========
Asia-Pacific cash gross margins 44% 42% 29%
======== ========== ===========
Same IBX centers are IBX centers which have been available for
customer installs for at least four full quarters. Our cash
gross margins for same IBX centers is presented below:
Same IBX cash gross margins 58% 56% 50%
======== ========== ===========
(14) We define EBITDA flow-through rate as incremental EBITDA growth
divided by incremental revenue growth as follows:
EBITDA - current period $16,055 $14,337 $7,528
Less EBITDA - prior period (14,337) (12,363) (5,657)
-------- ---------- -----------
EBITDA growth $1,718 $1,974 $1,871
======== ========== ===========
Revenues - current period $52,479 $48,684 $39,423
Less revenues - prior period (48,684) (44,989) (36,820)
-------- ---------- -----------
Revenue growth $3,795 $3,695 $2,603
======== ========== ===========
EBITDA flow-through rate 45% 53% 72%
======== ========== ===========
Same IBX centers are IBX centers which have been available for
customer installs for at least four full quarters. Our EBITDA
flow-through rates for same IBX centers is presented below:
Same IBX EBITDA - current period $17,016 $15,131 $7,953
Less same IBX EBITDA - prior period (15,131) (12,822) (6,434)
-------- ---------- ----------
Same IBX EBITDA growth $1,885 $2,309 $1,519
======== ========== ==========
Same IBX revenues - current period $51,282 $48,457 $37,996
Less same IBX revenues -
prior period (48,457) (43,165) (35,737)
------- -------- --------
Same IBX revenue growth $2,825 $5,292 $2,259
======== ========= ========
Same IBX EBITDA flow-through rate 67% 44% 67%
======== ======== ========
Six Months Ended
----------------------
June 30, June 30,
2005 2004
---------- -----------
(unaudited)
Recurring revenues $95,332 $71,754
Non-recurring revenues 5,831 4,489
---------- -----------
Revenues (1) 101,163 76,243
Cash cost of revenues (2) 45,246 40,851
---------- -----------
Cash gross profit (3) 55,917 35,392
---------- -----------
Cash operating expenses (4):
Cash sales and marketing expenses(5) 9,033 8,071
Cash general and administrative expenses
(6) 16,492 14,136
---------- -----------
Total cash operating expenses
(7) 25,525 22,207
---------- -----------
EBITDA (8) 30,392 13,185
---------- -----------
Cash interest and other income (expense) (9):
Interest income 1,569 484
Cash interest expense and other (10) (3,231) (2,062)
Cash loss on debt extinguishment and
conversion (11) - (2,505)
Income taxes (389) (200)
---------- -----------
Total cash interest and other, net (2,051) (4,283)
---------- -----------
Cash net income (12) $28,341 $8,902
========== ===========
Cash gross margins (13) 55% 46%
========== ===========
EBITDA flow-through rate (14) 58% 72%
========== ===========
-----------------------------------------------
(1) The geographic split of our revenues is
presented below:
U.S. revenues $87,400 $66,114
Asia-Pacific revenues 13,763 10,129
---------- -----------
Revenues $101,163 $76,243
========== ===========
Revenues on a services basis is presented
below:
Colocation $69,341 $52,011
Interconnection 19,169 14,320
Managed infrastructure 6,822 5,423
---------- -----------
Recurring revenues 95,332 71,754
Non-recurring revenues 5,831 4,489
---------- -----------
Revenues $101,163 $76,243
========== ===========
New IBX centers are IBX centers which have not been
available for customer installs for at least four full quarters.
Revenues on a same IBX versus new IBX basis is presented below:
Same IBX centers $99,739 $73,733
New IBX centers 1,424 2,510
---------- -----------
Revenues $101,163 $76,243
========== ===========
(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 $75,684 $67,935
Depreciation, amortization and accretion
expense (30,438) (27,062)
Stock-based compensation expense - (22)
---------- -----------
Cash cost of revenues $45,246 $40,851
========== ===========
The geographic split of our cash cost of
revenues is presented below:
U.S. cash cost of revenues $37,400 $33,555
Asia-Pacific cash cost of revenues 7,846 7,296
---------- -----------
Cash cost of revenues $45,246 $40,851
========== ===========
New IBX centers are IBX centers which have not been available for
customer installs for at least four full quarters. Cost of
revenues and cash cost of revenues on a same IBX versus new IBX
basis is presented below:
Same IBX centers-cash cost of revenues $42,481 $37,197
Same IBX centers-depreciation,
amortization and accretion expense 28,379 26,587
Same IBX centers-stock-based compensation
expense - 22
---------- -----------
Same IBX centers cost of revenues 70,860 63,806
---------- -----------
New IBX centers-cash cost of revenues 2,765 3,654
New IBX centers-depreciation, amortization
and accretion expense 2,059 475
New IBX centers-stock-based compensation
expense - -
---------- -----------
New IBX centers cost of revenues 4,824 4,129
---------- -----------
Cost of revenues $75,684 $67,935
========== ===========
(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 $9,964 $9,065
Depreciation and amortization expense (30) (949)
Stock-based compensation expense (901) (45)
---------- -----------
Cash sales and marketing expenses $9,033 $8,071
========== ===========
(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 $21,516 $16,250
Depreciation and amortization expense (992) (1,321)
Stock-based compensation expense (4,032) (793)
---------- -----------
Cash general and administrative
expenses $16,492 $14,136
========== ===========
(7) Our cash operating expenses, or cash
SG&A, as defined above, is presented
below:
Cash sales and marketing expenses $9,033 $8,071
Cash general and administrative expenses 16,492 14,136
---------- -----------
$25,525 $22,207
========== ===========
The geographic split of our cash operating expenses,
or cash SG&A, is presented below:
U.S. cash SG&A $20,394 $17,531
Asia-Pacific cash SG&A 5,131 4,676
---------- -----------
Cash SG&A $25,525 $22,207
========== ===========
(8) We define EBITDA as loss from operations less depreciation,
amortization, accretion, stock-based compensation expense
and restructuring charges as presented below:
Loss from operations $(6,001) $(17,007)
Depreciation, amortization and accretion
expense 31,460 29,332
Stock-based compensation expense 4,933 860
Restructuring charges - -
---------- -----------
EBITDA $30,392 $13,185
========== ===========
The geographic split of our EBITDA is
presented below:
U.S. loss from operations $(4,485) $(12,202)
U.S. depreciation, amortization and
accretion expense 29,158 26,370
U.S. stock-based compensation expense 4,933 860
U.S. restructuring charges - -
---------- -----------
U.S. EBITDA 29,606 15,028
---------- -----------
Asia-Pacific loss from operations (1,516) (4,805)
Asia-Pacific depreciation, amortization
and accretion expense 2,302 2,962
Asia-Pacific stock-based compensation
expense - -
Asia-Pacific restructuring charges - -
---------- -----------
Asia-Pacific EBITDA 786 (1,843)
---------- -----------
EBITDA $30,392 $13,185
========== ===========
New IBX centers are IBX centers which have not been available for
customer installs for at least four full quarters. EBITDA
on a same IBX versus new IBX basis is presented below:
Same IBX centers-loss from operations $(2,187) $(15,330)
Same IBX centers-depreciation,
amortization and accretion expense 29,401 28,857
Same IBX centers-stock-based compensation
expense 4,933 860
Same IBX centers-restructuring charges - -
---------- -----------
Same IBX center EBITDA 32,147 14,387
---------- -----------
New IBX centers-loss from operations (3,814) (1,677)
New IBX centers-depreciation, amortization
and accretion expense 2,059 475
New IBX centers-stock-based compensation
expense - -
New IBX centers-restructuring charges - -
---------- -----------
New IBX center EBITDA (1,755) (1,202)
---------- -----------
EBITDA $30,392 $13,185
========== ===========
(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 $(4,404) $(6,413)
Amortization of debt discounts and debt
issuance costs 396 1,814
Non-cash interest on convertible secured
notes 777 2,537
---------- -----------
Non-cash interest expense 1,173 4,351
---------- -----------
Cash interest expense and other $(3,231) $(2,062)
========== ===========
(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 as net income (loss) less
depreciation, amortization, accretion, stock-based compensation
expense, restructuring charges, non-cash interest expense and
non-cash loss on debt extinguishment and conversion as
presented below:
Net income (loss) $(9,225) $(39,347)
Depreciation, amortization and accretion
expense 31,460 29,332
Stock-based compensation expense 4,933 860
Restructuring charges - -
Non-cash interest expense (defined above) 1,173 4,351
Non-cash loss on debt extinguishment and
conversion (defined above) - 13,706
---------- -----------
Cash net income $28,341 $8,902
========== ===========
(13) We define cash gross margins as cash gross
profit divided by revenues.
Our cash gross margins by geographic region
is presented below:
U.S. cash gross margins 57% 49%
========== ===========
Asia-Pacific cash gross margins 43% 28%
========== ===========
Same IBX centers are IBX centers which have been available for
customer installs for at least four full quarters. Our cash
gross margins for same IBX centers is presented below:
Same IBX cash gross margins 57% 50%
========== ===========
(14) We define EBITDA flow-through rate as incremental EBITDA growth
divided by incremental revenue growth as follows:
EBITDA - current period $30,392 $13,185
Less EBITDA - prior period (22,429) (4,483)
---------- -----------
EBITDA growth $7,963 $8,702
========== ===========
Revenues - current period $101,163 $76,243
Less revenues - prior period (87,428) (64,073)
---------- -----------
Revenue growth $13,735 $12,170
========== ===========
EBITDA flow-through rate 58% 72%
========== ===========
Same IBX centers are IBX centers which have been available for
customer installs for at least four full quarters. Our EBITDA
flow-through rates for same IBX centers is presented below:
Same IBX EBITDA - current period $32,147 $14,387
Less same IBX EBITDA - prior period (23,142) (4,707)
-------- --------
Same IBX EBITDA growth $9,005 $9,680
======== ========
Same IBX revenues - current period $99,739 $73,733
Less same IBX revenues - prior period (83,923) (63,700)
-------- --------
Same IBX revenue growth $15,816 $10,033
======= ========
Same IBX EBITDA flow-through rate 57% 96%
======== ========
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets June 30, December 31,
2005 2004
------------ --------------
(unaudited)
Cash, cash equivalents and investments $132,029 $108,092
Accounts receivable, net 15,720 11,919
Property and equipment, net 345,117 343,361
Goodwill and other intangible assets, net 21,589 22,253
Debt issuance costs, net 2,473 3,164
Prepaid expenses 3,552 3,603
Deposits 3,515 6,062
Other assets 2,990 3,344
------------ --------------
Total assets $526,985 $501,798
============ ==============
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $21,068 $18,116
Accrued restructuring charges 14,227 14,750
Accrued property and equipment 5,424 2,912
Accrued interest payable 857 1,706
Capital lease obligation 34,881 35,204
Other debt facility 15,023 -
Convertible secured notes 1,950 35,824
Convertible subordinated debentures 86,250 86,250
Deferred rent 24,014 22,915
Deferred installation revenue 7,219 3,745
Customer deposits 801 3,360
Other liabilities 4,171 3,310
------------ --------------
Total liabilities 215,885 228,092
------------ --------------
Preferred stock 2 2
Common stock 24 19
Additional paid-in capital 832,922 776,123
Deferred stock-based compensation (9,295) (260)
Accumulated other comprehensive income 1,107 2,257
Accumulated deficit (513,660) (504,435)
------------ --------------
Total stockholders' equity 311,100 273,706
------------ --------------
Total liabilities and stockholders'
equity $526,985 $501,798
============ ==============
-------------------------------------------------------
Ending headcount by geographic region is as
follows:
U.S. headcount 345 315
Asia-pacific headcount 164 153
------------ --------------
Total headcount 509 468
============ ==============
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
(in thousands)
Six Months Ended
-------------------
June 30, June 30,
2005 2004
--------- ---------
(unaudited)
Cash flows from operating activities:
Net loss $(9,225) $(39,347)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation, amortization and accretion 31,460 29,332
Amortization of stock-based compensation 4,933 860
Non-cash interest expense 1,173 4,351
Loss on debt extinguishment and conversion - 16,211
Other reconciling items 1,050 2,919
Changes in operating assets and
liabilities:
Accounts receivable (3,748) (2,368)
Accounts payable and accrued expenses 2,952 1,013
Accrued restructuring charges (968) (466)
Accrued interest payable - 503
Other assets and liabilities 5,915 2,365
--------- ---------
Net cash provided by operating
activities 33,542 15,373
--------- ---------
Cash flows from investing activities:
Purchases of property and equipment (15,413) (9,162)
Accrued property and equipment 2,512 (1,532)
--------- ---------
Net cash used in investing
activities (12,901) (10,694)
--------- ---------
Cash flows from financing activities:
Proceeds from warrants, stock options and
employee stock purchase plans 7,632 2,590
Proceeds from convertible subordinated
debentures - 86,250
Repayment of capital lease obligations (322) (201)
Repayment of other debt facilities (3,690) (3,326)
Repayment of credit facility - (34,281)
Repayment of senior notes - (30,475)
Debt issuance and extinguishment costs - (5,727)
--------- ---------
Net cash provided by financing
activities 3,620 14,830
--------- ---------
Effect of foreign currency exchange rates on cash
and cash equivalents (324) (81)
--------- ---------
Net increase in cash, cash equivalents and
investments 23,937 19,428
Cash, cash equivalents and investments at
beginning of period 108,092 72,971
--------- ---------
Cash, cash equivalents and investments at end of
period $132,029 $92,399
========= =========
Free cash flow (2) $20,641 $4,679
========= =========
--------------------------------------------------
(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 operating
activities plus net cash used in investing activities
(excluding the purchase, sale and maturities of short-term and
long-term investments) as presented below:
Net cash provided by operating activities as
presented above $33,542 $15,373
Net cash used in investing activities as
presented above (12,901) (10,694)
--------- ---------
Free cash flow $20,641 $4,679
========= =========
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