Tuesday, July 26, 2011

Equinix Growth Continues: Revenues up, New Data Centers

Equinix recorded Q2 revenues of $394.9 million, a 9% increase over the previous quarter and a 33% increase over the same quarter last year. Reported adjusted EBITDA of $181.3 million, an 8% increase over the previous quarter and a 37% increase over the same quarter last year. This quarter included the results from the acquisition of an indirect, controlling equity interest in ALOG Data Centers do Brasil S.A. from April 25, 2011, which is referred to as the ALOG acquisition.

"With outstanding first-half results, Equinix is on target to surpass its original financial objectives for 2011. Solid market fundamentals such as the growth of IP, mobile, video, cloud and electronic trading combined with our global leadership position set us up well for the long term," said Steve Smith, president and CEO of Equinix. "Our investments are paying off and we will continue to carefully allocate capital to support our growth, while generating attractive returns for our shareholders."

Equinix also announced plans to build a tenth International Business Exchange (IBX) data center in Washington, D.C. (DC10) as well as the opening of its Business Continuity Services facility in Milan, Italy. DC10 will provide approximately 77,000 square feet of customer floor space, built out in multiple phases. Targeted to open in early 2012, the first phase is expected to cost $34 million in expansion capital, which is already reflected in the company's guidance.