Internap Reports Second Quarter 2012 Financial Results
ATLANTA, July 26, 2012 /PRNewswire via COMTEX/ -- Strong Revenue and Adjusted
EBITDA1 growth as data center services continues to deliver
Revenue of $68.7 million up 14 percent versus the second quarter of 2011;
Adjusted EBITDA1 of $12.2 million up 19 percent versus the second quarter of
2011;
Highest segment profit2 in the history of the company:
Segment profit of $36.0 million; segment margin2 of 52.5 percent, up 310 basis
points year-over-year;
On-track for third quarter of 2012 opening of company-controlled data centers in
Los Angeles and Atlanta;
Kevin Dotts named as Chief Financial Officer.
Internap Network Services Corporation (INAP), a provider of intelligent IT
Infrastructure services, today announced financial results for the second quarter
of 2012.
"We were pleased to deliver our fifth consecutive quarter of revenue growth and
see this as a positive indication of successful execution of our strategic plan.
Further, the growth from the data center services segment, particularly bolstered
by growth from the hosting service lines, is further evidence of the benefits
from the Voxel acquisition," said Eric Cooney, President and Chief Executive
Officer of Internap. "As we continue into the second half of 2012, the Internap
team continues to diligently pursue opportunities to accelerate the profitable
growth of the business and is keen to lay the foundation for a successful 2013."
Additionally, Internap has appointed Kevin Dotts as Chief Financial Officer
effective August 30, 2012. Dotts will report directly to Eric Cooney and will
oversee Internap's financial operations, information technology, investor
relations and facilities organizations. John Maggard, the interim Chief Financial
Officer, will continue in his prior role as Vice President and Controller. Dotts
joins Internap with 25 years of financial leadership experience spanning a range
of industries including telecommunications and internet services, energy, and
broadcast and cable media. He has served as Chief Financial Officer at EarthLink
and Culligan International Company and spent 15 years in progressively senior
positions at General Electric after successfully completing GE's financial
management program. "We are very pleased to announce the appointment of Kevin
Dotts as our Chief Financial Officer," said Cooney. "Kevin's experience as a
seasoned, public-company Chief Financial Officer, combined with his intimate
familiarity with the IT services business, positions him well to hit the ground
running as a key member of Internap's executive leadership team."
Second Quarter 2012 Financial Summary
YoYQoQ
2Q 20122Q 20111Q 2012GrowthGrowth
Revenues:
Data center services$41,493$32,481$39,93828%4%
IP services27,19427,92927,090-3%0%
Total Revenues$68,687$60,410$67,02814%2%
Operating Expenses$68,596$62,081$65,32010%5%
GAAP Net Income (Loss)$(1,997)$(2,612)$107n/mn/m
Normalized Net Income (Loss)2 $263$(319)$1,554n/mn/m
Segment Profit$36,046$29,841$35,87421%0%
Segment Profit Margin52.5%49.4%53.5%310 BPS-100 BPS
Adjusted EBITDA$12,190$10,276$12,23319%0%
Adjusted EBITDA Margin17.7%17.0%18.3%70 BPS-60 BPS
Revenue
Revenue totaled $68.7 million compared with $60.4 million in the second quarter
of 2011 and $67.0 million in the first quarter of 2012. Revenue from data center
services increased year-over-year and sequentially. IP services revenue decreased
compared with the second quarter of 2011 and slightly increased sequentially.
Data center services revenue improved 28 percent year-over-year and 4 percent
sequentially to $41.5 million. The majority of this year-over-year revenue
increase was attributable to organic growth in the data center services segment,
but was also positively impacted by the fourth quarter 2011 acquisition of Voxel.
The sequential increase was supported by higher revenue per net sellable square
foot and increased occupancy.
IP services revenue decreased 3 percent year-over-year and increased 0 percent
sequentially to $27.2 million. The year-over-year decrease was driven by per unit
price declines in IP. The sequential increase was driven by non-recurring IP
equipment sales.
Net (Loss) Income
GAAP net loss was $(2.0) million, or $(0.04) per share, compared with GAAP net
loss of $(2.6) million, or $(0.05) per share, in the second quarter of 2011 and
GAAP net income of $0.1 million, or $0.00 per share, in the first quarter of
2012.
Normalized net income, which excludes the impact of stock-based compensation
expense and items that management considers non-recurring, was $0.3 million, or
$0.01 per share. Normalized net loss was $(0.3) million, or $(0.01) per share, in
the second quarter of 2011. Normalized net income was $1.6 million or $0.03 per
share, in the first quarter of 2012.
Segment Profit and Adjusted EBITDA
Segment profit totaled $36.0 million in the second quarter, an increase of 21
percent year-over-year and 0 percent sequentially. Segment margin was 52.5
percent, increasing 310 basis points compared with the second quarter of 2011.
Segment margin decreased 100 basis points compared with the first quarter of
2012.
Segment profit in data center services was $18.8 million, or 45.4 percent of data
center services revenue. IP services segment profit was $17.2 million, or 63.3
percent of IP services revenue. An increasing proportion of higher-margin
services, specifically colocation sold in company controlled data centers and
hosting services, benefited data center services segment profit compared with the
second quarter of 2011. Higher seasonal power costs drove a decrease in data
center segment profit compared with the first quarter of 2012. Data center
services segment margin increased 620 basis points year-over-year and decreased
210 basis points sequentially to 45.4 percent. IP services segment profit
increased 1 percent compared with the second quarter of 2011. Sequentially, IP
segment profit increased 2 percent. Lower network costs primarily contributed to
the year-over-year and sequential increases in segment margins. IP services
segment margin increased 210 basis points year-over-year and increased 90 basis
points sequentially to 63.3 percent.
Adjusted EBITDA totaled $12.2 million in the second quarter, a 19 percent
increase compared with the second quarter of 2011 and flat relative to Adjusted
EBITDA in the first quarter of 2012. Adjusted EBITDA margin was 17.7 percent in
the second quarter of 2012, up 70 basis points year-over-year and a decrease of
60 basis points sequentially. Higher operating costs in the second quarter were
more than offset by improved segment profit relative to the second quarter of
2011. Sequentially, an increase in cash operating expenses related to our brand
awareness program and Voxel integration fees outweighed the quarter-over-quarter
increase in segment profit.
Balance Sheet and Cash Flow Statement
Cash and cash equivalents totaled $27.6 million at June 30, 2012. Total debt was
$119.3 million, net of discount, at the end of the quarter, including $47.6
million in capital lease obligations.
Cash generated from operations for the three months ended June 30, 2012 was $6.6
million. Capital expenditures over the same period were $22.7 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 approximately 3,700 customers under contract at the end of the second
quarter 2012.
Internap's Santa Clara data center won Silicon Valley Power's 2012 Energy
Innovator Award, which recognizes one organization annually that exhibits
superior efforts in supporting energy efficiency and renewable energy.
Implementation of a wide range of conservation strategies at this facility
resulted in a 49 percent reduction in overall energy use as compared to similar
building types and a perfect score of 100 from the Environmental Protection
Agency's Energy Performance Rating System.
The Technology Services Industry Association (TSIA) recognized Internap as a
Certified Support Excellence Center (CSSEC). Internap achieved certification in
the Support Staff Excellence (SSE) program, offered by TSIA and delivered by
Impact Learning Systems (ILS), which is a powerful staff development program that
enables the delivery of a superior customer service experience through the
development of the most critical service delivery resource a company has: its
people.
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) Income and Basic and Diluted
Net (Loss) Income Per Share to Normalized Net Income (Loss) and Basic and Diluted
Normalized Net Income (Loss) Per Share" in the attachment.
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.
Conference Call Information:
Internap's second quarter 2012 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 also 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, July 26, 2012 at 8
p.m. EDT through Wednesday, August 1, 2012 at 855-859-2056 using the replay code
99611729. 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 combine unmatched
performance and platform flexibility to enable our customers to focus on their
core business, improve service levels and lower the cost of IT operations. Our
unique trio of route-optimized enterprise IP, TCP acceleration and a global
content delivery network improves website performance and delivers superior
end-user experiences. Our scalable colocation, hosting, private cloud, public
cloud and hybrid offerings provide enterprises the flexibility to adapt to
changing business needs and future-proof their IT Infrastructure. Since 1996,
thousands of companies have entrusted Internap with the protection and delivery
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 our strategy to drive long-term
profitable growth, our expectations regarding the expansion of our hosting
capabilities and our efforts to integrate Voxel into our business. 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
successfully integrate Voxel into our business; 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 TorpeyMichael Nelson
(781) 418-2404(404) 302-9700
internap@daviesmurphy.com ir@internap.com
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(In thousands, except per share amounts)
Three Months Ended June 30,
20122011
Revenues:
Data center services$41,493$32,481
Internet protocol (IP) services27,19427,929
Total revenues68,68760,410
Operating costs and expenses:
Direct costs of network, sales and services, exclusive of
depreciation and amortization, shown below:
Data center services22,64919,733
IP services9,99210,836
Direct costs of customer support6,4815,374
Direct costs of amortization of acquired technologies1,179875
Sales and marketing8,3147,731
General and administrative10,6767,449
Depreciation and amortization8,6648,768
(Gain) loss on disposal of property and equipment, net(4)11
Restructuring and impairments6451,304
Total operating costs and expenses68,59662,081
Income (loss) from operations91(1,671)
Non-operating expense:
Interest expense1,754875
Other, net25448
Total non-operating expense2,008923
Loss before income taxes and equity in (earnings) of
equity method investment(1,917)(2,594)
Provision for income taxes179106
Equity in (earnings) of equity-method investment, net of taxes (99)(88)
Net loss(1,997)(2,612)
Other comprehensive (loss) income:
Foreign currency translation adjustment(114)20
Comprehensive loss$(2,111)$(2,592)
Basic and diluted net loss per share$(0.04)$(0.05)
Weighted average shares outstanding used in computing
basic and diluted net loss per share50,45350,174
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
June 30,December 31,
20122011
ASSETS
Current assets:
Cash and cash equivalents$27,624$29,772
Accounts receivable, net of allowance for doubtful accounts of $1,947 and $1,668, respectively 21,84818,539
Prepaid expenses and other assets12,29913,270
Total current assets61,77161,581
Property and equipment, net229,096198,369
Investment in joint venture3,0602,936
Intangible assets, net24,11526,886
Goodwill59,60559,471
Deposits and other assets5,2335,371
Deferred tax asset, net1,9572,096
Total assets$384,837$356,710
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$28,359$21,746
Accrued liabilities9,9159,152
Deferred revenues2,5312,475
Revolving credit facility-100
Capital lease obligations3,7122,154
Term loan, less discount of $203 and $206, respectively2,7972,794
Accrued contingent consideration4,889-
Restructuring liability2,5202,709
Other current liabilities163151
Total current liabilities54,88641,281
Deferred revenues2,4572,323
Capital lease obligations43,93238,923
Revolving credit facility14,856-
Term loan, less discount of $267 and $367, respectively53,98355,383
Accrued contingent consideration-4,626
Restructuring liability4,0924,884
Deferred rent15,70816,100
Other long-term liabilities9701,020
Total liabilities190,884164,540
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; 53,207 and 52,528 shares
outstanding, respectively5353
Additional paid-in capital1,239,6531,235,554
Treasury stock, at cost; 240 and 231 shares, respectively(1,663)(1,266)
Accumulated deficit(1,043,762)(1,041,872)
Accumulated items of other comprehensive loss(328)(299)
Total stockholders' equity193,953192,170
Total liabilities and stockholders' equity$384,837$356,710
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended June 30,
20122011
Cash Flows from Operating Activities:
Net loss$(1,890)$(4,112)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization18,93818,572
(Gain) loss on disposal of property and equipment, net(20)84
Impairment of capitalized software258-
Stock-based compensation expense, net of capitalized amount3,0191,900
Non-cash change in accrued contingent consideration263-
Equity in (earnings) from equity-method investment(160)(235)
Provision for doubtful accounts626480
Non-cash changes in deferred rent(391)(215)
Non-cash changes in capital lease obligations547229
Other, net214238
Changes in operating assets and liabilities:
Accounts receivable(3,935)(1,301)
Prepaid expenses, deposits and other assets812(1,333)
Accounts payable6,613(7,129)
Accrued and other liabilities989(2,105)
Deferred revenues189(551)
Accrued restructuring liability(980)172
Net cash flows provided by operating activities25,0924,694
Cash Flows from Investing Activities:
Purchases of property and equipment(39,493)(23,177)
Net cash flows used in investing activities(39,493)(23,177)
Cash Flows from Financing Activities:
Principal payments on term loan(1,500)(500)
Proceeds from revolving credit facility14,756-
Payments on capital lease obligations(1,386)(622)
Proceeds from exercise of stock options1,353833
Tax withholdings related to net share settlements of restricted stock awards(902)(671)
Other, net(58)(66)
Net cash flows provided by (used in) financing activities12,263(1,026)
Effect of exchange rates on cash and cash equivalents(10)25
Net decrease in cash and cash equivalents(2,148)(19,484)
Cash and cash equivalents at beginning of period29,77259,582
Cash and cash equivalents at end of period$27,624$40,098
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 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
June 30, 2012March 31, 2012June 30, 2011
Income (loss) from operations (GAAP)$91$1,708$(1,671)
Stock-based compensation1,6151,404989
Depreciation and amortization, including amortization of acquired technologies 9,8439,0949,643
(Gain) loss on disposal of property and equipment, net(4)(16)11
Restructuring and impairments645431,304
Adjusted EBITDA (non-GAAP)$12,190$12,233$10,276
INTERNAP NETWORK SERVICES CORPORATION
RECONCILIATION OF NET (LOSS) INCOME AND BASIC AND DILUTED
NET (LOSS) INCOME PER SHARE TO NORMALIZED NET INCOME (LOSS) AND
BASIC AND DILUTED NORMALIZED NET INCOME (LOSS) PER SHARE
Reconciliations of (1) net loss, the most directly comparable GAAP measure, to normalized net income (loss), (2) diluted shares outstanding used in per share calculations, the most directly comparable GAAP measure, to normalized diluted shares used in normalized per share outstanding calculations and (3) net loss per share, the most directly comparable GAAP measure, to normalized net income (loss) per share for each of the periods indicated is as follows (in thousands, except per share data):
Three Months Ended
June 30, 2012March 31, 2012June 30, 2011
Net (loss) income (GAAP)$(1,997)$107$(2,612)
Restructuring and impairments645431,304
Stock-based compensation1,6151,404989
Normalized net income (loss) (non-GAAP)2631,554(319)
Normalized net income (loss) allocable to participating securities (non-GAAP)(6)(38)-
Normalized net income (loss) available to common stockholders (non-GAAP)$257$1,516$(319)
Weighted average shares outstanding used in per share calculation:
Basic (GAAP)50,45350,33650,174
Participating securities (GAAP)1,1281,2551,086
Diluted (GAAP)50,45351,03350,174
Add potentially dilutive securities709--
Less dilutive effect of stock-based compensation under the treasury stock method(251)(323)-
Normalized diluted shares (non-GAAP)50,91150,71050,174
(Loss) income per share (GAAP):
Basic and diluted$(0.04)$0.00$(0.05)
Normalized net income (loss) per share (non-GAAP):
Basic and diluted$0.01$0.03$(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
June 30, 2012March 31, 2012June 30, 2011
Revenues:
Data center services$41,493$39,938$32,481
IP services27,19427,09027,929
Total68,68767,02860,410
Direct cost of network, sales and services, exclusive of
depreciation and amortization:
Data center services22,64920,97019,733
IP services9,99210,18410,836
Total32,64131,15430,569
Segment Profit:
Data center services18,84418,96812,748
IP services17,20216,90617,093
Total$36,046$35,874$29,841
Segment Margin:
Data center services45.4%47.5%39.2%
IP services63.3%62.4%61.2%
Total52.5%53.5%49.4% |
