Internap Receives Nasdaq Noncompliance Letter Company Intends to Appeal
SEATTLE, July 30 /PRNewswire-FirstCall/ -- Internap Network Services Corporation (Nasdaq: INAP) announced today that it has requested Nasdaq to grant the company a hearing to review the Staff's determination to delist Internap's common stock from the Nasdaq National Market. On July 24, 2002, Internap received notice from the Nasdaq National Market that its common stock bid price was not in compliance with Nasdaq Marketplace Rule 4450. The rule requires the company's common stock to maintain a minimum closing bid price of $1.00 during a 90-day period. Under Nasdaq rules the scheduled delisting will be stayed pending the outcome of the hearing.
"With more than 1,100 customers, a growing worldwide customer base and one of the industry's most diversified IP networks, Internap is on track to make some remarkable gains in the next year, and we do not believe our stock price accurately reflects Internap's sound underlying fundamentals," said Greg Peters, President and CEO of Internap Network Services. "We will continue to focus on guiding this company to profitability, delivering proven and reliable Internet connectivity and growing our business to meet the needs of our enterprise customers."
As mentioned in its recent financial release, during the second quarter Internap: -- Added a record 172 new revenue-producing customer, bring the installed base to 1,134, -- Increased revenue 13 percent since the second quarter of 2001, -- Improved its direct margin to 32 percent, compared to 26 percent during the first quarter and 9 percent during the second quarter of 2001, -- Reduced EBITDA losses by nearly 38 percent compared to the preceding quarter and by 79 percent compared to the second quarter of last year, and -- Expanded its service to 17 additional cities including -- Detroit, Las Vegas, Minneapolis/St. Paul, Phoenix, and Portland.
Also, for the first time in Internap's history, in aggregate all Metro Markets were operating cash flow positive during the quarter. The company continues to project that it will reach EBITDA profitability during the fourth quarter of this year. About Internap
Internap provides customers with certainty over the Internet through its patented route management technology and service guarantees. This managed IP service intelligently routes data across the major Internet backbones through a single connection from a customer's network to one of Internap's Service Points. Internap's customers bypass congestion points on the Internet, avoiding packet loss, latency and other difficulties that can plague conventional Internet connectivity. Founded in 1996 in Seattle, Internap offers services in numerous key markets throughout the United States, Europe and Japan including Atlanta, Boston, Chicago, London, Los Angeles, New York, San Francisco, San Jose, Seattle, Tokyo and Washington, DC. Internap(R) and P-NAP(R) are registered trademarks of Internap. All other trademarks and brands are the property of their respective owners. For more information, visit www.internap.com. "Safe Harbor" Statement
This release may contain projections or other forward-looking statements that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. Readers are referred to the documents filed by Internap with the SEC, including without limitation its most recent Reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, Internap's history of operating losses and expected future losses, Internap's limited operating history, fluctuations in Internap's quarterly operating results, competitive pricing pressure, Internet infrastructure and regulatory changes, ability to maintain Nasdaq listing, volatility of stock price, deployment of new Service Points, integration of acquired businesses and rapid technological and market change. All forward-looking statements are based on information available to Internap on the date hereof, and Internap assumes no obligation to update such statements. CONTACT: investors, Tim Hanson of Internap Network Services, +1-206-262-3742, or thanson@internap.com; or media, Chris Barker or Brian Sibley of Text 100 Public Relations, +1-206-381-3791, or internap@text100.com, for Internap Network Services. MAKE YOUR OPINION COUNT - Click Here tbutton.prnewswire.com SOURCE Internap Network Services Corporation /CONTACT: investors, Tim Hanson of Internap Network Services, +1-206-262-3742, or thanson@internap.com; or media, Chris Barker or Brian Sibley of Text 100 Public Relations, +1-206-381-3791, or internap@text100.com, for Internap Network Services/ /Web site: internap.com (INAP) CO: Internap Network Services Corporation ST: Washington IN: CPR MLM NET SU:
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