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Technology Stocks : Internap Network Services Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (913)	5/3/2007 5:26:14 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 1011

Pre-charge record revenues and earnings. There was a one-time charge as they stated they restructured real estate obligations and consolidated locations. The believe this will set them up for profitability in 2007 and beyond by getting this "garbage" out of the way. So now we know why the stock retreated over the past quarter, but I have to believe this charge has been "baked" into the stock price. Furthermore, FOX and IBM were added as customers over the last quarter. Also, customers are buying more bandwidth than previously, which will cut INAP's cost per customer as bandwitdth is more fully utilized. Overall, not bad.. Stock printed $17/share after hours. Hawk biz.yahoo.com Internap Reports First Quarter 2007 Financial Results Thursday May 3, 4:56 pm ET Announces One-Time Restructuring and Impairment Charges -- Record revenues for Q1 2007 of $53.5 million, an increase of 26% over prior year period -- Net Loss (GAAP) of $10.7 million for Q1 2007 (including a one-time restructuring and impairment charge totaling $11.4 million) compared with Net Income (GAAP) of $0.5 million for Q1 2006 -- Adjusted EBITDA(1) for Q1 2007 of $7.9 million, an increase of 36% over prior year period -- Added 106 net new customers during Q1 2007 -- Reaffirms Revenue and Adjusted EBITDA Guidance for the Year 2007 ATLANTA--(BUSINESS WIRE)--Internap Network Services Corporation (NASDAQ: INAP - News), a provider of choice for the world's elite businesses on the Internet, today reported financial results for the quarter ended March 31, 2007. For the first quarter of 2007, revenues totaled $53.5 million, an increase of 26% compared to the first quarter of 2006. Net loss (GAAP) for the first quarter of 2007 was $10.7 million, or $(0.26) per diluted share. This net loss includes a non-cash charge for stock-based compensation expense of $1.6 million, or $(0.04) per diluted share, pursuant to the adoption of SFAS No. 123R in the first quarter of 2006. Net loss (GAAP) for the first quarter of 2007 compares to a net income (GAAP) of $0.5 million for the first quarter of 2006. Normalized net income(1) and normalized net income per diluted share(1), which exclude the impact of stock-based compensation, the restructuring and impairment charges and acquired in-process research and development, was $2.7 million, or $0.06 per diluted share, respectively, for the first quarter of 2007. Adjusted gross margin(1) was 46.5% for the first quarter of 2007, compared to 46.3% for the fourth quarter of 2006. The Company reported adjusted EBITDA(1) of $7.9 million for the first quarter of 2007, an increase of $2.1 million, or 36%, from first quarter of 2006. The Company also reported cash, cash equivalents, investments in marketable securities and restricted cash at March 31, 2007 of $67.3 million, an increase of $8.4 million from the fourth quarter of 2006. "Internap's record revenue and strong operational performance in the first quarter of 2007 are indicative of the robust global demand for our Internet business solutions. The quarter was highlighted by important customer wins in all areas of our business and significant progress in the integration of VitalStream, which added CDN and monetization solutions to our portfolio of services," said James P. DeBlasio, president and chief executive officer of Internap. "The one-time restructuring charges announced today are a result of the evaluation of our recently completed VitalStream acquisition and positions us well for the future." "As we look ahead to the balance of 2007, we see increasing global demand for enterprises to effectively manage, deliver and distribute data and rich media content over the Internet. We are scaling our Company to meet this demand and Internap now has the ability to capture revenue from the highest growth areas of the Internet economy. We are off to a strong operational start in 2007. Based on the recurring revenue nature of our business model and the quality of our sales pipeline, particularly in CDN, we believe that our results will continue to improve throughout 2007, leading to both record revenue and record profitability for the year," concluded DeBlasio. Internap ended the first quarter with 3,281 customers under contract on a net basis, adding 106 new customers during the quarter, including the addition of 54 new enterprise customers in its CDN business unit. 2007 Full Year Guidance Internap today also reaffirmed its 2007 guidance, as follows: Full year 2007 revenue guidance of 30% over 2006, which includes the acquisition of VitalStream Holdings, Inc.; Full year adjusted EBITDA is expected to be in the range of $34 to $37 million; Full year expected adjusted gross margin to be approximately 50%; and Capital expenditures are expected to be in the range of $15 - $20 million.