April 1, 2002 -- Internap Network Services said today that it has negotiated agreements to shed leases for unneeded data center and administrative space.
The Seattle-based network services provider said it has terminated the leases by paying fees equivalent to about a year's rent - an average of 14 cents on the dollar compared to the full cost of the 15 to 20 year payouts on the leases.
"We are pleased about the completion of our real estate restructuring, relieving Internap of unused real estate primarily in unbuilt data center and administrative facilities," said said John Scanlon, Chief Financial Officer of Internap.
"These settlements on average have less than a 12-month payback, which further strengthens our balance sheet and provides a cash positive impact on our 2002 projections.''
Internap also updated its financial guidance for Wall Street analysts, saying it would report cash and investments of between $20 million and $25 million, and EBITDA losses in the range of $10 to $12 million for the quarter. Internap also said it is "comfortable" with projections of $32.5 million for the quarter.
"We are on our path to achieve EBITDA profitability for the fourth quarter of 2002, as evidenced by our continued revenue growth, cost controlling measures and declining EBITDA losses,'' said Scanlon.
Founded in 1996, Internap offers services in key markets throughout the United States, Europe and Japan.