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Equinix, Inc. yesterday announced it expects 2010 third quarter and full year revenues will be below the Company’s previous outlook, and it expects 2010 third quarter and full year adjusted EBITDA will be above the Company’s previous outlook, both provided on July 28, 2010.
Equinix now expects third quarter revenues to be in the range of $328.0 to $330.0 million, the midpoint of which is 2.2 percent lower than the midpoint of its previous outlook, and total revenues for the full year to be approximately $1,215.0 million, which is 1.2 percent lower than the midpoint of its previous outlook. This updated guidance is due to underestimated churn assumptions in Equinix’s forecast models in North America, greater than expected discounting to secure longer term contract renewals and lower than expected revenues attributable to the Switch and Data business acquired in April 2010.
For third quarter 2010, Equinix is increasing its adjusted EBITDA outlook to greater than $140.0 million. For the full year of 2010, the adjusted EBITDA outlook is also being increased to approximately $540.0 million. This increase in expectations is due in part to better than expected gross margins and lower than expected cash selling, general and administrative expenses.
Equinix will host a conference call to discuss this today, Tuesday, October 5, 2010, at 4:30 p.m. EDT (1:30 p.m. PDT). To hear the conference call live, please dial 1-210-234-8004 (domestic and international) and reference the passcode (EQIX). A simultaneous live Webcast of the call will also be available at www.equinix.com/investors.
A replay of the call will be available beginning on Tuesday, October 5, 2010 at 6:30 p.m. (EDT) through October 26, 2010 by dialing 1-203-369-0463 and referencing the passcode (2010). In addition, the webcast will be available on the Company’s website at www.equinix.com/investors. No password is required for the webcast.
Equinix will provide full third quarter results during its regularly scheduled earnings call on October 26, 2010.
