April 10, 2002 -- Telehouse America, a pioneer in the neutral colocation business, announced this week that it showed a profit for its 2001 fiscal year. The privately funded company provided no numbers, but said it showed a year-over-year revenue increase, as it has every year since its founding in 1987.
Telehouse attributed its profitability to a conscious decision to forego speculative expansion during the boom years of the late 1990s, expanding when its customer dictated the need.
"In the world of turmoil in the telecom and colocation industries, it's nice to be able to offer access and content companies a very stable alternative," said Yasuhiro Shintani, President and CEO for Telehouse America. "Our basic business model is to provide companies with high quality cost-effective colocation space and services.
"Our success is due to the quality and level of service and choice of carriers that we provide to our customers," Shintani added. "In order to foster our future growth and profitability, we will continue to search for new services that will add value to our core business of neutral colocation, and also help our customers grow along with us."
It was an eventful year for Telehouse, whose New York carrier hotel was among the most seriously affected by the Sept. 11 terrorist attacks. The 85,000 square foot facility at 25 Broadway, located less than a half-mile from the World Trade Center, was not damaged in the attacks, but experienced fuel shortages and generator problems that left customers off-line for parts of Sept. 13, 14 and 15.
The facility got back online with a Con Edison replacement generator, which kept things up and running until Con Ed restored power to the area Sept. 25. In the aftermath of the attacks, many Telehouse employees worked nearly round the clock while much of the surrounding area was effectively shut down.
Telehouse America originated high-availability data center housing in 1989 with facilities in Staten Island and Manhattan. It operates five carrier-neutral facilities.