Possible turn around.
Internap Reports Second Quarter 2010 Financial Results
-- Revenue of $60.5 million compared with $64.4 million in the second quarter of
2009; -- Segment profit(1) of $29.3 million; segment margin(1) of 48.3 percent,
up 510 basis points year-over-year; -- Adjusted EBITDA(2) of $9.9 million, up
46.5 percent year-over-year; adjusted EBITDA margin(2) of 16.4 percent; --
Announced openings of data center expansions in Houston, Seattle and Silicon
Valley increasing premium company-controlled selling capacity by 24 percent.
ATLANTA, Aug 04, 2010 /PRNewswire via COMTEX/ -- Internap Network Services
Corporation (INAP), a leading provider of end-to-end Internet business products
and services, today announced financial results for the second quarter of 2010.
Continued focus on Internap-controlled data centers and corresponding growth in
segment margin and adjusted EBITDA marked this quarter's results.
"Our fourth consecutive quarter of segment margin expansion and another quarter
of strong adjusted EBITDA attest to the efficacy of our strategy for Internap's
business turnaround. Proactive churn of low-margin partner data center contracts
helped improve segment profit in our Data center services business by almost 7
percent sequentially and 41 percent year-over-year," said Eric Cooney, President
and Chief Executive Officer of Internap. "The addition of 26,500 net sellable
square feet of company-controlled data center in July, and early traction from
recent product launches in both the IP and Data center business segments, bodes
well for the company's future revenue growth."
Second Quarter 2010 Financial Summary
-------------------------------------
2Q2Q1Q
201020092010YoYQoQ
---------------GrowthGrowth
------------
Revenues:
Data center
services$31,197$32,273$33,722-3%-8%
IP services29,32832,09929,643-9%-1%
------------------------
Total
Revenues$60,525$64,372$63,365-6%-5%
Operating
Expenses$61,238$124,576$63,251-51%-3%
GAAP Net
Loss$(1,271) $(60,645)$(260)n/mn/m
Normalized
Net Income
(Loss)(2)$1,356$(1,468)$749n/m81%
Adjusted
EBITDA$9,924$6,776$9,87732%10%
Adjusted
EBITDABPSBPS
Margin16.4%10.5%15.6%59080
Normalized Net Income (Loss) and Adjusted EBITDA are non-GAAP
measures. Reconciliations between GAAP information and non-GAAP
information contained in this table are provided later in this press
release.
Revenue
Revenue totaled $60.5 million compared with $64.4 million in the second quarter
of 2009 and $63.4 million in the first quarter of 2010. Revenue from both Data
center services and IP services decreased year-over-year and compared with the
first quarter of 2010.
Data center services revenue declined 3 percent year-over-year and 7 percent
sequentially to $31.2 million. The company's ongoing initiative to proactively
churn certain low-margin contracts in partner data centers drove the
year-over-year and sequential decreases.
IP services revenue totaled $29.3 million - a decrease of 9 percent compared with
the second quarter of 2009 and 1 percent sequentially. Per-unit price declines in
the second quarter of 2010 outweighed continued strong traffic growth over both
the prior quarter and the second quarter of 2009.
Net (Loss) Income
GAAP net loss was $(1.3) million, or $(0.03) per share, compared with GAAP net
loss of $(60.6) million, or $(1.22) per share, in the second quarter of 2009 and
$(0.3) million, or $(0.01) per share, in the first quarter of 2010. GAAP net loss
in the second quarter of 2010 included a non-cash restructuring charge of $1.2
million related to changes in assumptions on real-estate held for sublease.
Normalized net income(2), which excludes the impact of stock-based compensation
expense and items that management considers non-recurring, was $1.4 million, or
$0.03 per share. This compares with normalized net loss in the second quarter of
2009 of $(1.5) million, or $(0.03) per share, and normalized net income of $0.7
million, or $0.01 per share, in the first quarter of 2010.
Segment Profit and Adjusted EBITDA
Segment profit was $29.3 million, an increase of 5 percent year-over-year and
flat sequentially.
Segment margin was 48.3 percent, reaching its highest level in more than two
years. Segment profit in Data center services was $11.4 million, or 36.6 percent
of Data center services revenue. IP services segment profit was $17.8 million, or
60.9 percent of IP services revenue. Pricing discipline and initiatives to drive
a greater proportion of business to Internap-controlled data center facilities
benefited Data center services margins compared with prior periods. Decreased IP
services revenue drove the year-over-year and sequential decrease in segment
margins.
Adjusted EBITDA totaled $9.9 million in the second quarter, 46.5 percent higher
than the second quarter of 2009 and flat relative to the first quarter of 2010.
Adjusted EBITDA margin was 16.4 percent in the second quarter of 2010, up 590
basis points year-over-year and 80 basis points sequentially. The year-over-year
increase in Adjusted EBITDA was driven by higher segment profit and lower cash
operating expenses. Second quarter 2010 operating expenses included the benefit
of a payroll tax credit from the State of Georgia of $1.1 million.
Balance Sheet and Cash Flow Statement
Cash and cash equivalents totaled $76.1 million at June 30, 2010. Total debt was
$40.4 million at the end of the quarter, including $20.4 million in capital lease
obligations.
Cash generated from operations for the six months ended June 30, 2010 was $23.6
million. Capital expenditures over the same period were $28.5 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 2,807 customers under contract at the end of the second quarter 2010.
Our initiative to proactively churn customers in certain less profitable partner
data center facilities continued in the second quarter with approximately 19,000
net sellable square feet returned to data center partners during the quarter.
We launched our redesigned website in the second quarter. The new Internap.com
has generated a marked increase in total visits, engagement by prospects and
significant increase in traffic to solution and product-specific information.
On July 21, 2010, we announced significant expansions to our managed hosting
solution including the addition of high-performance servers, managed enterprise
storage solutions, layered data protection, standardized virtualization
capabilities and managed security.
We opened our new/expanded data centers in Silicon Valley, Seattle, and Houston
in July. The result is an increase in our company-controlled footprint of premium
data center space of 24 percent to 137,500 net sellable square feet.
Segment profit is segment revenues less direct costs of network, sales and
services, exclusive of depreciation and amortization, as presented in the notes
to our consolidated financial statements filed with the United States Securities
and Exchange Commission in Quarterly Reports on Form 10-Q and Annual Reports on
Form 10-K. 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.
Reconciliations between GAAP information and non-GAAP information contained in
this press release are provided in the tables below 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." This information is also
available on our website under the Investor Services section. Adjusted EBITDA
margin is Adjusted EBITDA as a percentage of total revenue.
Conference Call Information:
Internap's second quarter 2010 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 Wednesday, August 4, 2010 at 8
p.m. EDT through Wednesday, August 11, 2010 at 800-642-1687 using the code
85875105. International callers can access the archived event at 706-645-9291
with the same code.
About Internap
Internap is a leading Internet products and services company that provides The
Ultimate Online Experience(R) by managing, delivering and distributing
applications and content with 100 percent uptime service level agreements. With a
platform of data centers around the world, managed Internet services and a
content delivery network (CDN), Internap frees its customers to innovate, improve
service levels and lower the cost of IT operations. Thousands of companies across
the globe trust Internap to help them achieve their Internet business goals. For
more information, visit internap.com.
Forward-Looking Statements
This press release contains certain forward-looking statements. These
forward-looking statements include statements related to future revenue growth,
business turnaround, and Internap's expectations regarding the expansion of data
center capacity, including 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 Internap's ability
to achieve or sustain profitability; its ability to expand margins and drive
higher returns on investment; its ability to maintain current customers and
obtain new ones, whether in a cost-effective manner or at all; its ability to
correctly forecast capital needs, demand planning and space utilization; its
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 its network
operations centers, data centers, network access points or computer systems; its
ability to provide or improve Internet infrastructure services to its customers;
and its ability to protect its intellectual property, as well as other factors
discussed in Internap's 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. Internap undertakes
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.comir@internap.com
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
June 30,
20102009
--------
Revenues:
Data center services$31,197$32,273
Internet protocol (IP) services29,32832,099
------------
Total revenues60,52564,372
------------
Operating costs and expenses:
Direct cost of network, sales and
services, exclusive of
depreciation and amortization, shown
below:
Data center services19,78424,165
IP services11,47912,414
Direct costs of customer support5,0114,438
Direct costs of amortization of
acquired technologies9795,233
Sales and marketing7,0026,947
General and administrative8,78710,940
Depreciation and amortization7,0136,704
Impairments and restructuring1,18353,735
-----------
Total operating costs and expenses61,238124,576
-------------
Loss from operations(713)(60,204)
Non-operating expense (income):
Interest income(33)(48)
Interest expense518204
Other, net6(172)
-------
Total non-operating expense (income)491(16)
------
Loss before income taxes and equity
in loss (earnings) of(1,204)(60,188)
equity method investment:
Provision for income taxes129438
Equity in loss (earnings) of equity-
method investment, net of taxes(62)19
------
Net loss$(1,271)$(60,645)
===============
Basic and diluted net loss per share$(0.03)$(1.22)
============
Weighted average shares outstanding
used in computingbasic and
diluted net
loss per share50,01349,586
============
INTERNAP NETWORK SERVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
December
June 30,31,
20102009
--------
Unaudited
ASSETS
Current assets:
Cash and cash equivalents$76,075$73,926
Short-term investments in marketable
securities2,7007,000
Accounts receivable, net of allowance for
doubtful accounts of $2,102 and $1,953,18,55118,685
respectively
Inventory374375
Prepaid expenses and other assets10,1018,768
-----------
Total current assets107,801108,754
Property and equipment, net123,83991,151
Investments and other related assets1,8621,804
Intangible assets, net16,59120,782
Goodwill39,46439,464
Deposits and other assets2,5582,637
Deferred tax asset, non-current, net2,5822,910
----------
Total assets$294,697$267,502
================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$26,306$17,237
Accrued liabilities8,36010,192
Deferred revenues, current portion3,3643,817
Capital lease obligations, current portion72725
Restructuring liability, current portion2,7972,819
Other current liabilities130125
------
Total current liabilities41,68434,215
Revolving credit facility, due after one
year20,00020,000
Deferred revenues, less current portion2,1142,492
Capital lease obligations, less current
portion19,6853,217
Restructuring liability, less current
portion6,1716,123
Deferred rent16,59716,417
Other long-term liabilities570636
------
Total liabilities106,82183,100
-------------
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; 51,924 and 50,7635251
shares outstanding at June 30, 2010 and
December 31, 2009, respectively
Additional paid-in capital1,227,0541,221,456
Treasury stock, at cost: 97 and 42 shares at
June 30, 2010 and December 31, 2009(435)(127)
Accumulated deficit(1,038,079)(1,036,548)
Accumulated items of other comprehensive
loss(716)(430)
--------
Total stockholders' equity187,876184,402
--------------
Total liabilities and stockholders' equity$294,697$267,502
================
INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended
June 30,
20102009
--------
Cash Flows from Operating Activities:
Net loss$(1,531)$(67,253)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Goodwill and other intangible asset impairments----55,647
Depreciation and amortization16,74515,839
Provision for doubtful accounts7731,444
Equity in loss (earnings) from equity-method
investment(149)88
Non-cash changes in deferred rent1791,013
Stock-based compensation expense2,4363,363
Deferred income taxes352(406)
Other, net337264
Changes in operating assets and liabilities:
Accounts receivable(639)3,164
Inventory1(48)
Prepaid expenses, deposits and other assets(1,292)1,190
Accounts payable9,069(6,201)
Accrued and other liabilities(1,831)(140)
Deferred revenues(832)853
Accrued restructuring liability261,198
--------
Net cash flows provided by operating activities23,64410,015
------------
Cash Flows from Investing Activities:
Purchases of property and equipment(28,475)(9,037)
Maturities of investments in marketable securities4,3007,206
----------
Net cash flows used in investing activities(24,175)(1,831)
-------------
Cash Flows from Financing Activities:
Proceeds from notes payable39,00039,500
Principal payments on notes payable(39,000)(39,500)
Payments on capital lease obligations(62)(212)
Stock-based compensation plans2,845(307)
Other, net(61)(58)
------
Net cash flows provided by (used in) financing
activities2,722(577)
---------
Effect of exchange rates on cash and cash
equivalents(42)37
------
Net increase in cash and cash equivalents2,1497,644
Cash and cash equivalents at beginning of period73,92646,870
------------
Cash and cash equivalents at end of period$76,075$54,514
==============
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
------------------
March
June 30,31,June 30,
201020102009
------------
(Loss) income from operations (GAAP)$(713)$114$(60,204)
Stock-based compensation1,4449911,308
Depreciation and amortization, including
depreciation and amortization included in7,9928,75311,937
direct costs of network, sales and services
Loss on disposals of property and
equipment, net181-
Impairments and restructuring1,1831853,735
--------------
Adjusted EBITDA (non-GAAP)$9,924$9,877$6,776
==================
INTERNAP NETWORK SERVICES CORPORATION
RECONCILIATION OF NET LOSS AND BASIC AND DILUTED
NET LOSS PER SHARE TO NORMALIZED NET INCOME (LOSS) AND
BASIC AND DILUTED NORMALIZED NET INCOME (LOSS) PER SHARE
Reconciliations of (1) net loss, the most directly comparable GAAP
measure, to normalized net income (loss), (2) diluted
shares outstanding used in per share calculations, the most directly
comparable GAAP measure, to normalized diluted
shares used in normalized per share outstanding calculations and (3)
net loss per share, the most directly comparable GAAP
measure, to normalized net income (loss) per share for each of the
periods indicated is as follows (in thousands, except per
share data):
Three Months Ended
------------------
June 30,March 31, June 30,
201020102009
------------
Net loss (GAAP)$(1,271)$(260) $(60,645)
Impairments and restructuring1,1831853,735
Stock-based compensation expense1,4449911,308
Additional impairments included in
depreciation and amortization--4,134
-----------
Normalized net income (loss) (non-
GAAP)$1,356$749$(1,468)
Normalized net income allocable to
participating securities (non-GAAP)(30)(17)-
------
Normalized net income (loss) available
to common stockholders (non-GAAP)$1,326$732$(1,468)
=================
Weighted average shares outstanding
used in per share calculation:
Basic (GAAP)50,01349,94449,586
Participating securities (GAAP)1,1321,1931,203
Diluted (GAAP)50,01349,94449,586
Add potentially dilutive securities450519-
Less dilutive effect of stock-based
compensation under the treasury stock
method(347)(359)-
-----------
Normalized diluted shares (non-GAAP)50,11650,10449,586
==================
Loss per share (GAAP):
Basic and diluted$(0.03)$(0.01)$(1.22)
==================
Normalized net income (loss) per share
(non-GAAP):
Basic and diluted$0.03$0.01$(0.03)
================
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,March 31, June 30,
201020102009
------------
Revenues:
Data center services$31,197$33,722$32,273
Internet protocol (IP) services29,32829,64332,099
------------------
Total60,52563,36564,372
------------------
Direct cost of network, sales and
services, exclusive of
depreciation and amortization:
Data center services19,78423,04324,165
IP services11,47911,04212,414
------------------
Total31,26334,08536,579
------------------
Segment Profit:
Data center services11,41310,6798,108
IP services17,84918,60119,685
------------------
Total$29,262$29,280$27,793
=====================
Segment Margin:
Data center services36.6%31.7%25.1%
IP services60.9%62.8%61.3%
------------
Total48.3%46.2%43.2%
============ |
