Internap Reports First Quarter 2011 Financial Results
-- Revenue of $59.4 million compared with $63.4 million in the first quarter of
2010; -- Segment profit(1) of $30.4 million; segment margin(1) of 51.1 percent,
up 490 basis points year-over-year; -- Adjusted EBITDA(2) of $9.2 million
adjusted EBITDA margin(2) of 15.5 percent; -- Announces 55,000 net sellable
square foot addition of company-controlled data center capacity in Los Angeles.
ATLANTA, April 28, 2011 /PRNewswire via COMTEX/ -- Internap Network Services
Corporation (INAP), a leading provider of IT infrastructure services, today
announced financial results for the first quarter of 2011.
"We believe the first quarter of 2011 represents an inflection point from which
the company returns to top-line growth in both of our business units, Data center
services and IP services. Positive trends across the business including: bookings
growth, reduced churn, and enhanced customer satisfaction, give us confidence in
our expectation for sequential revenue growth in the second quarter," said Eric
Cooney, President and Chief Executive Officer of Internap. "The sustained upward
trend in both segment profit and segment margin continued in the first quarter,
positioning us to benefit from increased operating leverage and future top-line
growth. The announcement today that we are adding Los Angeles to our portfolio of
company-controlled data center markets, marks our 7th expansion and 3rd new
market since the fourth quarter of 2009. Not only do these portfolio expansions
provide the platform for our entire range of IT infrastructure services including
connectivity, colocation, managed hosting and cloud, they position us to drive
long-term profitable growth for our stockholders."
First Quarter 2011 Financial Summary
1Q 20111Q 20104Q 2010YoYQoQ
GrowthGrowth
-------------------------------------------
Revenues:
Data center services$ 31,542$ 33,722$ 31,732-6%-1%
IP services27,86229,64328,227-6%-1%
----------------------------
Total Revenues$ 59,404$ 63,365$ 59,959-6%-1%
Operating Expenses$ 60,292$ 63,251$ 59,720-5%1%
GAAP Net Loss$(1,500)$(260)$(429)n/mn/m
Normalized Net (Loss) Income(2) $(400)$749$861n/mn/m
Segment Profit$ 30,374$ 29,280$ 29,4514%3%
Segment Profit Margin51.1%46.2%49.1%490 BPS200 BPS
Adjusted EBITDA$9,213$9,877$ 10,282-7%-10%
Adjusted EBITDA Margin15.5%15.6%17.1%-10 BPS-160 BPS
Revenue
Revenue totaled $59.4 million compared with $63.4 million in the first quarter of
2010 and $60.0 million in the fourth quarter of 2010. Revenue from Data center
services decreased both year-over-year and sequentially. IP services decreased
year-over-year and compared with the fourth quarter of 2010.
Data center services revenue declined 6 percent year-over-year and decreased 1
percent sequentially to $31.5 million. Both the year-over-year and the sequential
decline in this segment was attributable to our initiative to proactively churn
certain less-profitable contracts in partner data centers. The first quarter of
2011 is the final quarter that sequential revenue growth is impacted by this
program.
IP services revenue totaled $27.9 million - a decrease of 6 percent compared with
the first quarter of 2010 and 1 percent sequentially - as traffic growth was more
than offset by per unit price declines in IP.
Net (Loss) Income
GAAP net loss was $(1.5) million, or $(0.03) per share, compared with GAAP net
loss of $(0.3) million, or $(0.01) per share, in the first quarter of 2010 and
$(0.4) million, or $(0.01) per share, in the fourth quarter of 2010.
Normalized net income, which excludes the impact of stock-based compensation
expense and items that management considers non-recurring, was $(0.4) million, or
$(0.01) per share. Normalized net income was $0.7 million, or $0.01 per share, in
the first quarter of 2010, and $0.9 million, or $0.02 per share, in the fourth
quarter of 2010.
Segment Profit and Adjusted EBITDA
Segment profit totaled $30.4 million in the first quarter, an increase of 4
percent year-over-year and 3 percent sequentially. Segment margin was 51.1
percent, increasing 490 basis points compared with the first quarter of 2010 and
200 basis points over the fourth quarter of 2010.
Segment profit in Data center services was $13.0 million, or 41.3 percent of Data
center services revenue. IP services segment profit was $17.4 million, or 62.3
percent of IP services revenue. Proactive churn of less-profitable partner data
center revenue benefited Data center services segment profit compared with both
the first quarter of 2010 and the fourth quarter of 2010. Data center services
segment margin increased 960 basis points year-over-year and 280 basis points
sequentially to 41.3 percent. IP services segment profit decreased 7 percent
compared with the first quarter of 2010. Sequentially, IP segment profit
increased 1 percent. Lower revenue drove the year-over-year decrease in segment
margins. Lower network infrastructure costs drove the sequential improvement in
IP segment profit. IP services segment margin decreased 50 basis points
year-over-year and increased 120 basis points sequentially to 62.3 percent.
Adjusted EBITDA totaled $9.2 million in the first quarter, a 7 percent decrease
compared with the first quarter of 2010 and down 10 percent relative to Adjusted
EBITDA in the fourth quarter of 2010. Adjusted EBITDA margin was 15.5 percent in
the first quarter of 2011, down 10 basis points year-over-year and 160 basis
points sequentially. Higher operating costs in the first quarter drove the
decline relative to prior periods. Operating costs in the first quarter included
approximately $0.6 million of executive severance costs that will not impact
future quarters.
Balance Sheet and Cash Flow Statement
Cash and cash equivalents totaled $46.3 million at March 31, 2011. Total debt was
$48.3 million, net of discount, at the end of the quarter, including $29.3
million in capital lease obligations.
Cash generated from operations for the three months ended March 31, 2011 was $0.1
million. Capital expenditures over the same period were $12.7 million.
Recent Operational Highlights
Historical trends of key financial and operational metrics can be found in a
supplementary data schedule on Internap's website at
ir.internap.com.
We had 2,733 customers under contract at the end of the first quarter 2011.
On April 4, 2011, we announced that Accelerated IP (XIP(TM)), a service-based
Internet traffic accelerator that improves performance of enterprise web services
and applications by up to four times, is now available across the company's
global data center footprint.
On April 11, 2011, we announced that we were integrating our XIP service into our
global Content Delivery Network (CDN). The integration further sets apart the
performance of Internap's CDN by improving the delivery of video streaming and
web content to a wide range of user devices, including mobile phones, tablets and
PCs, resulting in up to four times faster streaming and downloads.
On March 23, 2011, we opened a 7,000 net sellable square feet expansion in our
Boston facility. This data center is designed to an N+1 standard for power,
cooling, and connectivity and is capable of scaling power densities to 12
kilowatts per cabinet making center one of the most robust sites in the region.
Today, we announced that we will construct a new premium, company-controlled data
center in Los Angeles that is expected to be operational in the second quarter of
2012. Like Internap's other company-controlled data centers, the LA facility will
offer customers a highly-reliable and flexible IT infrastructure platform. It
will maintain a full range of customer amenities and will feature a modular power
design that enables our customers to increase their power densities to over 12
kilowatts per cabinet without taking on additional space.
(1) Segment profit and segment margin are non-GAAP financial measures and are
defined in an attachment to this press release entitled "Non-GAAP (Adjusted)
Financial Measures." Reconciliations between GAAP information and non-GAAP
information related to segment profit and segment margin are contained in the
table entitled "Segment Profit and Segment Margin" in the attachment.
(2) Adjusted EBITDA and Normalized Net Income (Loss) are non-GAAP financial
measures and are defined in an attachment to this press release entitled
"Non-GAAP (Adjusted) Financial Measures." Reconciliations between GAAP
information and non-GAAP information related to Adjusted EBITDA and Normalized
Net Income (Loss) are contained in the tables entitled "Reconciliation of Loss
from Operations to Adjusted EBITDA," and "Reconciliation of Net Loss and Basic
and Diluted Net Loss Per Share to Normalized Net Income (Loss) and Basic and
Diluted Normalized Net Income (Loss) Per Share" in the attachment.
Conference Call Information:
Internap's first quarter 2011 conference call will be held today at 5:00 p.m.
EDT. Listeners may connect to a webcast of the call, which will include
accompanying presentation slides, on the investor services section of Internap's
web site at ir.internap.com. The call can also be accessed by
dialing 866-515-9839. International callers should dial 631-813-4875. An online
archive of the webcast presentation will be available for one month following the
call. An audio-only replay will be accessible from Thursday, April 28, 2011 at 8
p.m. EDT through Thursday, May 5, 2011 at 800-642-1687 using the replay code
59494301. International callers can access the archived event at 706-645-9291
with the same code.
About Internap
Internap provides intelligent IT Infrastructure services that enable our
customers to focus on their core business, improve service levels, and lower the
cost of IT operations. Our enterprise IP, CDN, colocation, managed hosting and
cloud solutions are differentiated by unparalleled levels of performance,
availability and support. Since 1996, thousands of businesses have entrusted
Internap with the delivery and protection of their online applications. Transform
your IT infrastructure into a competitive advantage with IT IQ from Internap. For
more information, visithttp://www.internap.com/, our blog at
internap.com, or follow us on Twitter
athttp://twitter.com/internap.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking
statements include statements related to future revenue growth, the benefits to
be realized from investments in our business, our strategy to drive long-term
profitable growth and our expectations regarding the expansion of
company-controlled data center capacity, including expectations as to timing.
Because such statements are not guarantees of future performance and involve
risks and uncertainties, there are important factors that could cause Internap's
actual results to differ materially from those in the forward-looking statements.
These factors include our ability to achieve or sustain profitability; our
ability to expand margins and drive higher returns on investment; our ability to
complete expansion of company-controlled data centers within the expected
timeframe; our ability to sell into new data center space; the actual performance
of our IT infrastructure services; our ability to maintain current customers and
obtain new ones, whether in a cost-effective manner or at all; our ability to
correctly forecast capital needs, demand planning and space utilization; our
ability to respond successfully to technological change and the resulting
competition; the availability of services from Internet network service providers
or network service providers providing network access loops and local loops on
favorable terms, or at all; failure of third party suppliers to deliver their
products and services on favorable terms, or at all; failures in our network
operations centers, data centers, network access points or computer systems; our
ability to provide or improve Internet infrastructure services to our customers;
and our ability to protect our intellectual property, as well as other factors
discussed in our filings with the Securities and Exchange Commission. Given these
risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. We undertake no
obligation to update, amend or clarify any forward-looking statement for any
reason.
Press Contact:Investor Contact:
Mariah TorpeyAndrew McBath
(781) 418-2404(404) 302-9700
internap@daviesmurphy.com ir@internap.com
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
March 31,
------------------------------
20112010
----------------------------
Revenues:
Data center services$ 31,542$ 33,722
Internet protocol (IP) services27,86229,643
----------------------------
Total revenues59,40463,365
----------------------------
Operating costs and expenses:
Direct cost of network, sales and services, exclusive of
depreciation and amortization, shown below:
Data center services18,53023,043
IP services10,50011,042
Direct costs of customer support5,1104,940
Direct costs of amortization of acquired technologies875979
Sales and marketing7,8337,124
General and administrative9,1298,330
Depreciation and amortization8,0537,774
Loss on disposal of property and equipment, net731
Restructuring18918
----------------------------
Total operating costs and expenses60,29263,251
----------------------------
(Loss) income from operations(888)114
----------------------------
Non-operating expense (income):
Interest expense648304
Interest income-(29)
Other, net3830
----------------------------
Total non-operating expense (income)686305
----------------------------
Loss before income taxes and equity in (earnings) of(1,574)(191)
equity method investment
Provision for income taxes73156
Equity in (earnings) of equity-method investment, net of taxes(147)(87)
----------------------------
Net loss$ (1,500)$(260)
Basic and diluted net loss per share$(0.03)$(0.01)
Weighted average shares outstanding used in computing basic and diluted net loss per share 50,12449,944
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
March 31,December 31,
20112010
-----------------------
ASSETS
Current assets:
Cash and cash equivalents$46,298$59,582
Accounts receivable, net of allowance for doubtful accounts of $1,682 and $1,883, respectively16,46017,588
Inventory171160
Prepaid expenses and other assets11,29611,057
-----------------------
Total current assets74,22588,387
Property and equipment, net156,323142,289
Investment2,4882,265
Intangible assets, net13,82414,698
Goodwill39,46439,464
Deposits and other assets3,9713,600
Deferred tax asset, net2,4842,439
-----------------------
Total assets$292,779$293,142
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$18,410$25,383
Accrued liabilities7,8898,975
Deferred revenues3,0303,268
Capital lease obligations1711,071
Term loan, less discount of $118 and $116, respectively882884
Restructuring liability2,5872,691
Other current liabilities138135
-----------------------
Total current liabilities33,10742,407
Deferred revenues2,2422,134
Capital lease obligations29,08519,139
Term loan, less discount of $296 and $328, respectively18,20418,422
Restructuring liability4,8805,273
Deferred rent16,58516,655
Other long-term liabilities467501
-----------------------
Total liabilities104,570104,531
-----------------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value: 20,000 shares authorized; no shares issued--
or outstanding
Common stock, $0.001 par value; 120,000 shares authorized and 52,274 shares outstanding at March 31, 2011; 120,000 shares authorized and 52,017 shares outstanding at December 31, 2010 5252
Additional paid-in capital1,231,0631,229,684
Treasury stock, at cost: 190 and 115 shares, respectively(1,001)(520)
Accumulated deficit(1,041,670)(1,040,170)
Accumulated items of other comprehensive loss(235)(435)
-----------------------
Total stockholders' equity188,209188,611
-----------------------
Total liabilities and stockholders' equity$292,779$293,142
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
------------------------------
20112010
----------------------------
Cash Flows from Operating Activities:
Net loss$ (1,500)$(260)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization8,9288,753
Loss on disposal of property and equipment, net731
Stock-based compensation expense911991
Equity in (earnings) from equity-method investment(147)(87)
Provision for doubtful accounts165330
Non-cash changes in deferred rent(70)357
Deferred income taxes(45)297
Other, net156(12)
Changes in operating assets and liabilities:
Accounts receivable963(414)
Inventory, prepaid expenses, deposits and other assets(657)(153)
Accounts payable(6,973)1,447
Accrued and other liabilities(1,086)(1,812)
Deferred revenues(130)(523)
Accrued restructuring liability(497)(622)
----------------------------
Net cash flows provided by operating activities918,293
----------------------------
Cash Flows from Investing Activities:
Maturities of investments in marketable securities-100
Purchases of property and equipment(12,650)(3,908)
Proceeds from disposal of property and equipment41
----------------------------
Net cash flows used in investing activities(12,646)(3,807)
----------------------------
Cash Flows from Financing Activities:
Proceeds from credit agreements-19,500
Principal payments on credit agreements(250)(19,500)
Payments on capital lease obligations(361)(13)
Stock-based compensation plans(115)2,762
Other, net(33)(30)
----------------------------
Net cash flows (used in) provided by financing activities(759)2,719
----------------------------
Effect of exchange rates on cash and cash equivalents30(23)
----------------------------
Net (decrease) increase in cash and cash equivalents(13,284)7,182
Cash and cash equivalents at beginning of period59,58273,926
----------------------------
Cash and cash equivalents at end of period$ 46,298$ 81,108
INTERNAP NETWORK SERVICES CORPORATION NON-GAAP (ADJUSTED) FINANCIAL MEASURES
In addition to providing financial measurements based on accounting principles
generally accepted in the United States of America ("GAAP"), Internap has
historically provided additional financial measures that are not prepared in
accordance with GAAP ("non-GAAP"), including adjusted EBITDA, normalized net
income (loss), normalized diluted shares outstanding, segment profit and segment
margin. The most directly comparable GAAP equivalent to adjusted EBITDA and
normalized net income (loss) is loss from operations and net loss, respectively.
The most directly comparable GAAP equivalent to normalized diluted shares
outstanding is diluted common shares outstanding.
We define non-GAAP measures as follows:
Adjusted EBITDA is loss from operations plus depreciation and amortization, loss
on disposals of property and equipment, impairments and restructuring and
stock-based compensation.
Adjusted EBITDA margin is adjusted EBITDA as a percentage of revenues.
Normalized net income (loss) is net income (loss) plus impairments and
restructuring and stock-based compensation.
Normalized diluted shares outstanding are diluted shares of common stock
outstanding used in GAAP net loss per share calculations, excluding the dilutive
effect of stock-based compensation using the treasury stock method.
Normalized net income (loss) per share is normalized net income (loss) divided by
basic and normalized diluted shares outstanding.
Segment profit is segment revenues less direct costs of network, sales and
services, exclusive of depreciation and amortization for the segment, as
presented in the notes toour consolidated financial statements. Segment profit
does not include direct costs of customer support, direct costs of amortization
of acquired technologies or any other depreciation or amortization associated
with direct costs.
Segment margin is segment profit as a percentage of segment revenues.
We detail reconciliations ofour non-GAAP financial measures to the most directly
comparable financial measure in the reconciliations of GAAP to non-GAAP measures
below. We believe that presentation of these non-GAAP financial measures provides
useful information to investors regarding our results of operations.
We believe that excluding depreciation and amortization and loss on disposals of
property and equipment, as well as impairments and restructuring, to calculate
adjusted EBITDA provides supplemental information and an alternative presentation
that is useful to investors' understanding of Internap's core operating results
and trends. Not only are depreciation and amortization expenses based on
historical costs of assets that may have little bearing on present or future
replacement costs, but also they are based on management estimates of remaining
useful lives. Loss on disposals of property and equipment is also based on
historical costs of assets that may have little bearing on replacement costs.
Impairments and restructuring expenses primarily reflect goodwill impairments and
subsequent plan adjustments in sublease income assumptions for certain properties
included in our previously disclosed restructuring plans.
Internap believes that impairment and restructuring charges are unique costs that
we do not expect to recur on a regular basis, and consequently, we do not
consider these charges as a normal component of expenses related to current and
ongoing operations.
Similarly, we believe that excluding the effects of stock-based compensation from
non-GAAP financial measures provides supplemental information and an alternative
presentation useful to investors' understanding of Internap's core operating
results and trends. Investors have indicated that they consider financial
measures of our results of operations excluding stock-based compensation as
important supplemental information useful to their understanding of our
historical results and estimating our future results.
We also believe that, in excluding the effects of stock-based compensation, our
non-GAAP financial measures provide investors with transparency into what
management uses to measure and forecast our results of operations, to compare on
a consistent basis our results of operations for the current period to that of
prior periods and to compare our results of operations on a more consistent basis
against that of other companies, in making financial and operating decisions and
to establish certain management compensation.
Stock-based compensation is an important part of total compensation, especially
from the perspective of employees. We believe, however, that supplementing GAAP
net loss and net loss per share information by providing normalized net income
(loss) and normalized net income (loss) per share, excluding the effect of
impairments, restructuring and stock-based compensation in all periods, is useful
to investors because it enables additional and more meaningful period-to-period
comparisons. We consider normalized diluted shares to be another important
indicator of our overall performance because it eliminates the effect of non-cash
items.
Adjusted EBITDA is not a measure of liquidity calculated in accordance with GAAP,
and should be viewed as a supplement to -- not a substitute for -- our results of
operations presented on the basis of GAAP. Adjusted EBITDA does not purport to
represent cash flow provided by operating activities as defined by GAAP. Our
statements of cash flows present our cash flow activity in accordance with GAAP.
Furthermore, adjusted EBITDA is not necessarily comparable to similarly-titled
measures reported by other companies.
We believe adjusted EBITDA is used by and is useful to investors and other users
of our financial statements in evaluating our operating performance because it
provides them with an additional tool to compare business performance across
companies and across periods. We believe that:
EBITDA is widely used by investors to measure a company's operating performance
without regard to items such as interest expense, income taxes, depreciation and
amortization, which can vary substantially from company-to-company depending upon
accounting methods and book value of assets, capital structure and the method by
which assets were acquired; and
investors commonly adjust EBITDA information to eliminate the effect of disposals
of property and equipment, impairments, restructuring and stock-based
compensation which vary widely from company-to-company and impair comparability.
Our management uses adjusted EBITDA:
as a measure of operating performance to assist in comparing performance from
period-to-period on a consistent basis;
as a measure for planning and forecasting overall expectations and for evaluating
actual results against such expectations; and
in communications with the board of directors, analysts and investors concerning
our financial performance.
Our presentation of segment profit and segment margin excludes direct costs of
customer support, depreciation and amortization in order to allow investors to
see the business through the eyes of management. Management views direct costs of
network, sales and services as generally less controllable, external costs and
management regularly monitors the margin of revenues in excess of these direct
costs. Similarly, we view the costs of customer support to also be an important
component of costs of revenues but believe that the costs of customer support to
be more within our control and to some degree discretionary as we can adjust
those costs by hiring and terminating employees.
Segment margin is an important metric to our investors and analysts, as we have
regularly discussed and disclosed the effects of third party vendors' pricing
declines and the corresponding effect on our revenues. The presentation of
segment margin highlights the impact of the pricing declines and allows investors
and analysts to evaluate our revenue generation performance relative to direct
costs of network, sales and services. Conversely, we have much greater latitude
in controlling the compensation component of costs of revenues, represented by
customer support, and we analyze this component separately from the direct
external costs.
We also have excluded depreciation and amortization from segment profit and
segment margin because, as noted above, they are based on estimated useful lives
of tangible and intangible assets. Further, depreciation and amortization are
based on historical costs incurred to build out our deployed network and the
historical costs of these assets may not be indicative of current or future
capital expenditures.
Although we believe, for the foregoing reasons, that our presentation of non-GAAP
financial measures provides useful supplemental information to investors
regarding our results of operations, our non-GAAP financial measures should only
be considered in addition to, and not as a substitute for, or superior to, any
measure of financial performance prepared in accordance with GAAP.
Use of non-GAAP financial measures is subject to inherent limitations because
they do not include all the expenses that must be included under GAAP and because
they involve the exercise of judgment of which charges should properly be
excluded from the non-GAAP financial measure. Management accounts for these
limitations by not relying exclusively on non-GAAP financial measures, but only
using such information to supplement GAAP financial measures. Our non-GAAP
financial measures may not be the same non-GAAP measures, and may not be
calculated in the same manner, as those used by other companies.
INTERNAP NETWORK SERVICES CORPORATION RECONCILIATION OF LOSS FROM OPERATIONS TO
ADJUSTED EBITDA
A reconciliation of loss from operations, the most directly comparable GAAP
measure, to adjusted EBITDA for each of the periods indicated is as follows (in
thousands):
Three Months Ended
-------------------------------------------
March 31,December 31,March 31,
201120102010
---------------------------------------
(Loss) income from operations (GAAP)$(888)$239$114
Stock-based compensation9111,080991
Depreciation and amortization, including amortization of acquired technologies 8,9288,6448,753
Loss on disposal of property and equipment, net731091
Restructuring18921018
---------------------------------------
Adjusted EBITDA (non-GAAP)$9,213$10,282$9,877
INTERNAP NETWORK SERVICES CORPORATION RECONCILIATION OF NET LOSS AND BASIC AND
DILUTED NET LOSS PER SHARE TO NORMALIZED NET INCOME (LOSS) AND BASIC AND DILUTED
NORMALIZED NET INCOME (LOSS) PER SHARE
Reconciliations of (1) net loss, the most directly comparable GAAP measure, to
normalized net income (loss), (2) diluted shares outstanding used in per share
calculations, the most directly comparable GAAP measure, to normalized diluted
shares used in normalized per share outstanding calculations and (3) net loss per
share, the most directly comparable GAAP measure, to normalized net income (loss)
per share for each of the periods indicated is as follows (in thousands, except
per share data):
Three Months Ended
----------------------------------
March 31,December 31,March 31,
201120102010
------------------------------
Net loss (GAAP)$ (1,500)$(429)$(260)
Impairments and restructuring18921018
Stock-based compensation expense9111,080991
------------------------------
Normalized net (loss) income (non-GAAP)(400)861749
Normalized net income allocable to participating securities (non-GAAP)-(19)(17)
---------------------
Normalized net (loss) income available to common stockholders (non-GAAP)$(400)$842$732
Weighted average shares outstanding used in per share calculation:
Basic (GAAP)50,12450,06149,944
Participating securities (GAAP)1,0871,1031,193
Diluted (GAAP)50,12450,06149,944
Add potentially dilutive securities-436519
Less dilutive effect of stock-based compensation under the treasury stock method -(267)(359)
------------------------------
Normalized diluted shares (non-GAAP)50,12450,23050,104
Loss per share (GAAP):
Basic and diluted$(0.03)$(0.01)$(0.01)
Normalized net (loss) income per share (non-GAAP):
Basic and diluted$(0.01)$0.02$0.01
INTERNAP NETWORK SERVICES CORPORATION SEGMENT PROFIT AND SEGMENT MARGIN
Segment profit and segment margin, which does not include direct costs of
customer support, direct costs of amortization of acquired technologies or any
other depreciation or amortization, for each of the periods indicated is as
follows (dollars in thousands):
Three Months Ended
----------------------------------
March 31,December 31,March 31,
201120102010
------------------------------
Revenues:
Data center services$ 31,542$31,732$ 33,722
IP services27,86228,22729,643
------------------------------
Total59,40459,95963,365
------------------------------
Direct cost of network, sales and services, exclusive of
depreciation and amortization:
Data center services18,53019,52923,043
IP services10,50010,97911,042
---------------------
Total29,03030,50834,085
------------------------------
Segment Profit:
Data center services13,01212,20310,679
IP services17,36217,24818,601
Total$ 30,374$29,451$ 29,280
Segment Margin:
Data center services41.3%38.5%31.7%
IP services62.3%61.1%62.8%
Total51.1%49.1%46.2% |
