Oct. 18, 2001 -- Data center network services provider Equinix, Inc. gained 41 new customers in the third quarter, including major names such as MSN, Google, SBC and British Telecom, the company said this week.
The company also took a $48.6 million charge to earnings to cover the write-down of its European assets and a 15 percent reduction in its workforce, primarily at the company headquarters in Mountain View, Calif.
Revenue grew 6.2 percent from the previous quarter to $17.2 million, while operating (EBITDA) losses narrowed to $8.7 million, compared to $11.5 million the prior quarter. Equinix said it continues to expect that it will reach the break-even point on EBITDA earnings in the coming quarter.
The company's net loss for the quarter, including the restructuring charge, was $81.6 million. As of September 30, Equinix had $198.4 million in cash, the company said.
"In each quarter since our IPO, Equinix has exceeded earnings expectations,'' said Peter Van Camp, chairman and CEO of Equinix. "Our ability to continue to increase market share and maintain a solid financial position demonstrates successful execution in all key areas of the business. The Company remains fully funded and we reaffirm our target of EBITDA breakeven within the fourth quarter.''
At the end of the quarter, total customer count stood at 191. In addition to the 41 new customers, Equinix' received additional orders from 27 existing customers, including IBM, Level 3, Williams and Loudcloud.
The write-down of European assets reflects a shift in strategy for Equinix. Rather than operate its own facilities, the company will offer interconnection services through partnerships with InterXion in Europe and Pihana Pacific in the Asia/Pacific region, which will allow Equinix to extend its reach to 29 international market
The company is on schedule to open its seventh Internet Business eXchange (IBX) center in the New York metro area in the fourth quarter of 2001, bringing the total square footage to 810,000 square feet.
Equinix provides network services to ISPs, bandwidth providers and infrastructure services providers.