Internap Reports Third Quarter 2011 Financial Results
-- Revenue of $62.0 million compared with $60.3 million in the prior year's
quarter -- Segment profit(1) of $31.2 million; segment margin(1) of 50.4 percent,
up 270 basis points year-over-year; -- Adjusted EBITDA(2) of $11.3 million, up 23
percent over the third quarter of 2010; -- Adjusted EBITDA margin(2) of 18.2
percent, up 300 basis points year-over-year; -- Announces launch of comprehensive
enterprise cloud services.
ATLANTA, Oct. 27, 2011 /PRNewswire via COMTEX/ -- Internap Network Services
Corporation (INAP), a leading provider of IT Infrastructure services, today
announced financial results for the third quarter of 2011.
"We are pleased with Internap's solid financial results for the third quarter of
2011. Continued strong operational performance drove improvement across the
business this quarter as demonstrated by: accelerated revenue growth, higher
profitability and increased data center occupancy," said Eric Cooney, President
and Chief Executive Officer of Internap. "Further, we are pleased to see
confirmation of our strategic shift to an IT Infrastructure services provider as
our company-controlled data center and managed hosting revenue continues to grow
at or above market rates. With our on-going data center footprint expansion and
the launch of our enterprise cloud services solution, Internap is now unmatched
in terms of our IT services platform flexibility and performance."
Third Quarter 2011 Financial Summary
3Q 20113Q 20102Q 2011YoYQoQ
GrowthGrowth
-----------------------------------------
Revenues:
Data center services$34,114$31,550$32,4818%5%
IP services27,90028,76527,929-3%0%
---------------------
Total Revenues$62,014$60,315$60,4103%3%
Operating Expenses$62,439$60,851$62,0813%1%
GAAP Net Loss$(1,788)$(1,662)$(2,612)n/mn/m
Normalized Net (Loss) Income(2)$(575)$(548)$(319)n/mn/m
Segment Profit$31,227$28,748$29,8419%5%
Segment Profit Margin50.4%47.7%49.4%270 BPS100 BPS
Adjusted EBITDA$11,263$9,145$10,27623%10%
Adjusted EBITDA Margin18.2%15.2%17.0%300 BPS120 BPS
n/m = not meaningful
Revenue
Third quarter revenue totaled $62.0 million compared with $60.3 million in the
third quarter of 2010 and $60.4 million in the second quarter of 2011. Revenue
from Data center services increased year-over-year and sequentially. IP services
revenue decreased compared with the third quarter of 2010 and was flat
sequentially.
Data center services revenue increased 8 percent year-over-year and 5 percent
sequentially to $34.1 million. Both the year-over-year and the sequential
increases in this segment were driven by increased sales of colocation in
company-controlled datacenters and accelerating growth in hosting services.
IP services revenue in the third quarter totaled $27.9 million - a decrease of 3
percent year-over-year and flat compared with the second quarter of 2011. Per
unit price decreases, partly offset by traffic growth, drove the year-over-year
decrease in IP services revenue.
Net (Loss) Income
GAAP net loss was $(1.8) million, or $(0.04) per share, compared with GAAP net
loss of $(1.7) million, or $(0.03) per share, in the third quarter of 2010 and
$(2.6) million, or $(0.05) per share, in the second quarter of 2011.
Normalized net loss in the third quarter, which excludes the impact of
stock-based compensation expense and items that management considers
non-recurring, was $(0.6) million, or $(0.01) per share. Normalized net loss was
$(0.5) million, or $(0.01) per share, in the third quarter of 2010, and $(0.3)
million, or $(0.01) per share, in the second quarter of 2011.
Segment Profit and Adjusted EBITDA
Segment profit totaled $31.2 million in the third quarter, an increase of 9
percent year-over-year and a 5 percent sequentially. Third quarter 2011 segment
margin was 50.4 percent, an increase of 270 basis points year over year and 100
basis points sequentially.
Segment profit in Data center services totaled $13.6 million, or 40.0 percent of
Data center services revenue in the third quarter of 2011. IP services segment
profit for the quarter was $17.6 million, or 63.1 percent of IP services revenue.
Increased colocation revenue generated at company-controlled data centers and
higher managed hosting revenue benefited Data center services segment profit
relative to both the third quarter of 2010 and the second quarter of 2011. Data
center services segment margin increased 470 basis points year-over-year and 80
basis points sequentially to 40.0 percent. Network efficiency programs and lower
ISP vendor costs allowed IP services segment profit to remain flat compared with
the third quarter of 2010 and drove a 3 percent improvement sequentially. Lower
network costs were the primary contributors to the 190 basis point improvement in
IP services segment margins compared with both the third quarter of 2010 and the
second quarter of 2011.
Third quarter 2011 adjusted EBITDA totaled $11.3 million, a 23 percent increase
over the third quarter of 2010 and a 10 percent increase over the second quarter
of 2011. Adjusted EBITDA margin was 18.2 percent in the third quarter of 2011, up
300 basis points year-over-year and 120 basis points sequentially. The
year-over-year increase in adjusted EBITDA was attributable to increased segment
profit in our Data center services segment. The sequential Adjusted EBITDA
improvement was driven by segment profit increases in both Data center services
and IP services.
Balance Sheet and Cash Flow Statement
Cash and cash equivalents totaled $34.3 million at September 30, 2011. Total debt
was $55.9 million, net of discount, at the end of the quarter, including $37.3
million in capital lease obligations.
Cash generated from operations for the nine months ended September 30, 2011 was
$27.0 million. Capital expenditures over the same period were $50.9 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 2,737 customers under contract at the end of the third quarter 2011.
Today, we announced that our comprehensive enterprise cloud services are now
generally available. With four access options that include both feature-rich
VMware? platforms as well as a lower cost, open source solution built on
OpenStack, Internap's Enterprise Cloud is one of the most flexible,
high-performance services available today.
We also announced today that our public and private cloud services attained
VMware vCloud? Powered validation. As part of the VMware partner ecosystem,
Internap delivers public and private cloud services that are vCloud Powered,
providing enterprise customers with the benefits of VMware virtualization in a
completely managed cloud environment.
Earlier this week, we announced that our CDN Mobile Service, featuring 'publish
once -deliver to any device' technology, would be available in the fourth
quarter. This service allows customers to upload a single file which is then
dynamically adapted for viewing on multiple target mobile devices including Apple
iPhone and iPad, and Android, Silverlight and Flash based devices.
(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 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 (Loss) Income are non-GAAP financial measures and are defined in an attachment to this press release entitled "Non-GAAP (Adjusted) Financial Measures."Reconciliations between GAAP and non-GAAP information related to Adjusted EBITDA and Normalized Net (Loss) Income 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 (Loss) Income and Basic and Diluted Normalized Net (Loss) Income Per Share" in the attachment.
Conference Call Information:
Internap's third 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 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, October 27, 2011 at
8 p.m. EDT through Wednesday, November 2, 2011 at 855-859-2056 using the replay
code 18857640. International callers can listen to the archived event at
404-537-3406 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, visit internap.com, our blog at
internap.com, or follow us on Twitter at
twitter.com.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking
statements include statements related to the flexibility of our Enterprise Cloud
solution and the availability and features of our CDN Mobile Service. 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 the actual performance of our IT Infrastructure services; 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; 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.
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
September 30,
------------------------------
20112010
----------------------------
Revenues:
Data center services$ 34,114$ 31,550
Internet protocol (IP) services27,90028,765
----------------------------
Total revenues62,01460,315
----------------------------
Operating costs and expenses:
Direct costs of network, sales and services, exclusive of
depreciation and amortization, shown below:
Data center services20,48020,405
IP services10,30711,162
Direct costs of customer support5,4075,033
Direct costs of amortization of acquired technologies875979
Sales and marketing7,3147,451
General and administrative8,3338,233
Depreciation and amortization9,6477,601
(Gain) loss on disposal of property and equipment, net(47)(13)
Restructuring123-
----------------------------
Total operating costs and expenses62,43960,851
----------------------------
Loss from operations(425)(536)
----------------------------
Non-operating expense (income):
Interest income-(2)
Interest expense1,166618
Other, net204
----------------------------
Total non-operating expense (income)1,186620
----------------------------
Loss before income taxes and equity in (earnings) of
equity method investment(1,611)(1,156)
Provision for income taxes275634
Equity in (earnings) of equity-method investment, net of taxes (98)(128)
----------------------------
Net loss$ (1,788)$ (1,662)
Basic and diluted net loss per share$(0.04)$(0.03)
Weighted average shares outstanding used in computing basic
and diluted net loss per share50,21750,026
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
September 30,December 31,
20112010
------------------------------------
ASSETS
Current assets:
Cash and cash equivalents$34,289$59,582
Accounts receivable, net of allowance for doubtful accounts of $1,754 and $1,883, respectively 18,89817,588
Prepaid expenses and other assets11,34911,217
------------------------------------
Total current assets64,53688,387
Property and equipment, net184,402142,289
Investment2,8462,265
Intangible assets, net12,07014,698
Goodwill39,46439,464
Deposits and other assets4,7313,600
Deferred tax asset, net2,1732,439
------------------------------------
Total assets$310,222$293,142
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$30,589$25,383
Accrued liabilities7,8698,975
Deferred revenues2,3883,268
Capital lease obligations6071,071
Term loan, less discount of $118 and $116, respectively883884
Restructuring liability2,6642,691
Other current liabilities145135
------------------------------------
Total current liabilities45,14542,407
Deferred revenues2,2402,134
Capital lease obligations36,68319,139
Term loan, less discount of $237 and $328, respectively17,76318,422
Restructuring liability4,9375,273
Deferred rent16,30916,655
Other long-term liabilities458501
------------------------------------
Total liabilities123,535104,531
------------------------------------
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; 52,483 and 52,017 shares
outstanding, respectively5352
Additional paid-in capital1,234,1191,229,684
Treasury stock, at cost; 221 and 115 shares, respectively(1,212)(520)
Accumulated deficit(1,046,070)(1,040,170)
Accumulated items of other comprehensive loss(203)(435)
------------------------------------
Total stockholders' equity186,687188,611
------------------------------------
Total liabilities and stockholders' equity$310,222$293,142
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
September 30,
------------------------------
20112010
----------------------------
Cash Flows from Operating Activities:
Net loss$ (5,900)$ (3,192)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization29,09325,325
Loss on disposal of property and equipment, net377
Provision for doubtful accounts7931,088
Equity in (earnings) from equity-method investment(333)(277)
Non-cash changes in deferred rent(345)200
Stock-based compensation expense2,9903,551
Deferred income taxes334462
Other, net848619
Changes in operating assets and liabilities:
Accounts receivable(2,103)(2,289)
Prepaid expenses, deposits and other assets(1,338)(1,587)
Accounts payable5,2067,051
Accrued and other liabilities(1,106)(1,314)
Deferred revenues(775)(904)
Accrued restructuring liability(364)(559)
----------------------------
Net cash flows provided by operating activities27,03728,181
----------------------------
Cash Flows from Investing Activities:
Purchases of property and equipment(50,937)(43,234)
Proceeds from disposal of property and equipment2812
Maturities of investments in marketable securities-7,000
----------------------------
Net cash flows used in investing activities(50,909)(36,222)
----------------------------
Cash Flows from Financing Activities:
Proceeds from credit agreements-58,500
Principal payments on credit agreements(750)(58,500)
Payments on capital lease obligations(903)(204)
Proceeds from exercise of stock options1,0623,187
Tax withholdings related to net share settlements of restricted stock awards(691)(350)
Other, net(100)(218)
----------------------------
Net cash flows (used in) provided by financing activities(1,382)2,415
----------------------------
Effect of exchange rates on cash and cash equivalents(39)11
----------------------------
Net decrease in cash and cash equivalents(25,293)(5,615)
Cash and cash equivalents at beginning of period59,58273,926
----------------------------
Cash and cash equivalents at end of period$ 34,289$ 68,311
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 to our 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 of our 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 NETWORK SERVICES CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
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.
INTERNAP NETWORK SERVICES CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
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
-----------------------------------------------------------------------------------------------------
September 30,June 30,September 30,
201120112010
-------------------------------------------------------------------------------------------------
Loss from operations (GAAP)$(425)$(1,671)$(536)
Stock-based compensation1,0909891,114
Depreciation and amortization, including amortization of acquired
technologies10,5229,6438,580
(Gain) loss on disposal of property and equipment, net(47)11(13)
Restructuring1231,304-
-------------------------------------------------------------------------------------------------
Adjusted EBITDA (non-GAAP)$11,263$10,276$9,145
INTERNAP NETWORK SERVICES CORPORATION
RECONCILIATION OF NET LOSS AND BASIC AND DILUTED
NET LOSS PER SHARE TO NORMALIZED NET INCOME (LOSS) AND
BASIC AND DILUTED NORMALIZED NET INCOME (LOSS) PER SHARE
Reconciliations of (1) net loss, the most directly comparable GAAP measure, to normalized net income (loss), (2) diluted shares outstanding used in per share calculations, the most directly comparable GAAP measure, to normalized diluted shares used in normalized per share outstanding calculations and (3) net loss per share, the most directly comparable GAAP measure, to normalized net income (loss) per share for each of the periods indicated is as follows (in thousands, except per share data):
Three Months Ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
September 30,June 30,September 30,
201120112010
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Net loss (GAAP)$(1,788)$ (2,612)$(1,662)
Restructuring1231,304-
Stock-based compensation1,0909891,114
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Normalized net (loss) income (non-GAAP)(575)(319)(548)
Normalized net income allocable to participating securities (non-GAAP)---
----------------------------------------------------------------------------------
Normalized net loss available to common stockholders (non-GAAP)$(575)$(319)$(548)
Weighted average shares outstanding used in per share calculation:
Basic (GAAP)50,21750,17450,026
Participating securities (GAAP)1,0741,0861,118
Diluted (GAAP)50,21750,17450,026
Add potentially dilutive securities---
Less dilutive effect of stock-based compensation under the treasury stock method---
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Normalized diluted shares (non-GAAP)50,21750,17450,026
Loss per share (GAAP):
Basic and diluted$(0.04)$(0.05)$(0.03)
Normalized net loss per share (non-GAAP):
Basic and diluted$(0.01)$(0.01)$(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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
September 30,June 30,September 30,
201120112010
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenues:
Data center services$34,114$ 32,481$31,550
IP services27,90027,92928,765
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total62,01460,41060,315
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Direct cost of network, sales and services, exclusive of
depreciation and amortization:
Data center services20,48019,73320,405
IP services10,30710,83611,162
---------------------------------------------------
Total30,78730,56931,567
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Segment Profit:
Data center services13,63412,74811,145
IP services17,59317,09317,603
Total$31,227$ 29,841$28,748
Segment Margin:
Data center services40.0%39.2%35.3%
IP services63.1%61.2%61.2%
Total50.4%49.4%47.7%
Press Contact:Investor Contact:
Mariah TorpeyAndrew McBath
(781) 418-2404(404) 302-9700
internap@daviesmurphy.com ir@internap.com |
