Internap Reports Financial Results for First Quarter 2005; Record Revenues of $37.9 Million, Net Income Positive Guidance during 2005
ATLANTA
Internap Network Services Corporation, Atlanta
Media Contact
Amy Cielinski, 404/302-9784
acielinski@internap.com
or
Investor Contact
Andrew Albrecht, 404/302-9841
aalbrecht@internap.com
Internap Network Services Corporation (AMEX: IIP), a leading provider of performance-based routing services for IP networks, today reported fiscal first quarter results for the quarter ended March 31, 2005. For the first quarter, revenues totaled $37.9 million, an increase of 4.4% compared to the first quarter of 2004. Net loss for the first quarter was $0.6 million, an improvement of approximately 80% compared to the same period in 2004.
Quarterly Highlights:
-- The Company's customer base grew to 1,984 customers, an increase of 55 net new customers in the quarter. Among the new customers are: Affiliated Computer Services, Aspen Marketing Services, Cambridge Associates, Edmunds.com, Hollywood Media and Pulse Entertainment
-- Gross margin was 47% (defined as revenues of $37.9 million less $19.9 million of direct cost of revenues, excluding depreciation and amortization, divided by revenues)
-- Capital Expenditures totaled $3.0 million
-- Cash, cash equivalents and investments in marketable securities at March 31, 2005 were $44.2 million
2005 Full Year Guidance
-- Full year revenue growth of 3% to 5%
-- Gross Margins in the current range 47% to 48%
-- Capital Expenditures in the range $10 million to $12 million
-- Turning net income positive during the year 2005
Internap's net loss was $0.6 million for the first quarter of 2005 compared to a net loss of $2.6 million for the first quarter of 2004. Included in the net loss for the first quarter of 2005 was a positive impact of $1.1 million related to the reversal of an estimated liability for an assessment from the New York State Department of Taxation originally recorded in the second quarter of 2004.
Conference Call Information:
Internap's first quarter teleconference will be held today beginning at 5:00 p.m. EST. The dial-in numbers are 800-659-1966; pass code 47012413 for domestic callers, and 617-614-2711, pass code 47012413 for international participants. The simultaneous web cast will be available from the Investor Relations section of the web site at: www.internap.com.
Internap will provide a replay of the teleconference on its website. Internap will also provide a telephonic replay of the call by dialing 888-286-8010, pass code 15972832. |
