TMCnet News
Internap Network Services Corporation Reports 3Q 2011 Financial ResultsNov 02, 2011 (Close-Up Media via COMTEX) -- Internap Network Services Corporation, a provider of IT Infrastructure services, announced financial results for the third quarter of 2011. "We are pleased with Internap's solid financial results for the third quarter of 2011. Continued strong operational performance drove improvement across the business this quarter as demonstrated by: accelerated revenue growth, higher profitability and increased data center occupancy," said Eric Cooney, President and Chief Executive Officer of Internap, in a release dated Oct. 27. "Further, we are pleased to see confirmation of our strategic shift to an IT Infrastructure services provider as our company-controlled data center and managed hosting revenue continues to grow at or above market rates. With our on-going data center footprint expansion and the launch of our enterprise cloud services solution, Internap is now unmatched in terms of our IT services platform flexibility and performance." Revenue -Third quarter revenue totaled $62.0 million compared with $60.3 million in the third quarter of 2010 and $60.4 million in the second quarter of 2011. Revenue from Data center services increased year-over-year and sequentially. IP services revenue decreased compared with the third quarter of 2010 and was flat sequentially. -Data center services revenue increased 8 percent year-over-year and 5 percent sequentially to $34.1 million. Both the year-over-year and the sequential increases in this segment were driven by increased sales of colocation in company-controlled datacenters and accelerating growth in hosting services. -IP services revenue in the third quarter totaled $27.9 million a decrease of 3 percent year-over-year and flat compared with the second quarter of 2011. Per unit price decreases, partly offset by traffic growth, drove the year-over-year decrease in IP services revenue. Net (Loss) Income -GAAP net loss was $(1.8) million, or $(0.04) per share, compared with GAAP net loss of $(1.7) million, or $(0.03) per share, in the third quarter of 2010 and $(2.6) million, or $(0.05) per share, in the second quarter of 2011. -Normalized net loss in the third quarter, which excludes the impact of stock-based compensation expense and items that management considers non-recurring, was $(0.6) million, or $(0.01) per share. Normalized net loss was $(0.5) million, or $(0.01) per share, in the third quarter of 2010, and $(0.3) million, or $(0.01) per share, in the second quarter of 2011. Segment Profit and Adjusted EBITDA -Segment profit totaled $31.2 million in the third quarter, an increase of 9 percent year-over-year and a 5 percent sequentially. Third quarter 2011 segment margin was 50.4 percent, an increase of 270 basis points year over year and 100 basis points sequentially. -Segment profit in Data center services totaled $13.6 million, or 40.0 percent of Data center services revenue in the third quarter of 2011. IP services segment profit for the quarter was $17.6 million, or 63.1 percent of IP services revenue. Increased colocation revenue generated at company-controlled data centers and higher managed hosting revenue benefited Data center services segment profit relative to both the third quarter of 2010 and the second quarter of 2011. Data center services segment margin increased 470 basis points year-over-year and 80 basis points sequentially to 40.0 percent. Network efficiency programs and lower ISP vendor costs allowed IP services segment profit to remain flat compared with the third quarter of 2010 and drove a 3 percent improvement sequentially. Lower network costs were the primary contributors to the 190 basis point improvement in IP services segment margins compared with both the third quarter of 2010 and the second quarter of 2011. -Third quarter 2011 adjusted EBITDA totaled $11.3 million, a 23 percent increase over the third quarter of 2010 and a 10 percent increase over the second quarter of 2011. Adjusted EBITDA margin was 18.2 percent in the third quarter of 2011, up 300 basis points year-over-year and 120 basis points sequentially. The year-over-year increase in adjusted EBITDA was attributable to increased segment profit in our Data center services segment. The sequential Adjusted EBITDA improvement was driven by segment profit increases in both Data center services and IP services. Balance Sheet and Cash Flow Statement -Cash and cash equivalents totaled $34.3 million at Sept. 30. Total debt was $55.9 million, net of discount, at the end of the quarter, including $37.3 million in capital lease obligations. -Cash generated from operations for the nine months ended Sept. 30, was $27.0 million. Capital expenditures over the same period were $50.9 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/results.cfm. -We had 2,737 customers under contract at the end of the third quarter 2011. -We announced that our public and private cloud services attained VMware vCloud Powered validation. As part of the VMware partner ecosystem, Internap delivers public and private cloud services that are vCloud Powered, providing enterprise customers with the benefits of VMware virtualization in a completely managed cloud environment. -We announced that our CDN Mobile Service, featuring publish once deliver to any device technology, would be available in the fourth quarter. This service allows customers to upload a single file which is then dynamically adapted for viewing on multiple target mobile devices including Apple iPhone and iPad, and Android, Silverlight and Flash based devices. Internap provides IT Infrastructure services. ((Comments on this story may be sent to [email protected])) |