Exhibit 99.1

Equinix Reports Second Quarter 2009 Results

FOSTER CITY, Calif.--(BUSINESS WIRE)--July 22, 2009--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported results for the quarter ended June 30, 2009.

Revenues were $213.2 million for the quarter, a 7% increase over the previous quarter, and a 24% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services, were $205.3 million for the second quarter, a 7% increase over the previous quarter, and a 26% increase over the same quarter last year. Non-recurring revenues were $7.9 million in the quarter, consisting primarily of professional services and installation fees.

Cost of revenues was $118.5 million for the quarter, a 6% increase over the previous quarter and a 16% increase over the same quarter last year. Excluding depreciation, amortization, accretion and stock-based compensation expense of $43.3 million for the quarter, cost of revenues was $75.2 million for the quarter, which the Company refers to as cash cost of revenues, a 5% increase over the previous quarter, and a 14% increase over the same quarter last year. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation expense, divided by revenues, for the quarter were 65%, up from 64% the previous quarter and up from 62% the same quarter last year.

Selling, general and administrative expenses were $53.8 million for the quarter, a 9% increase from the previous quarter and a 5% decrease over the same quarter last year. Excluding depreciation, amortization and stock-based compensation expense of $15.3 million for the quarter, selling, general and administrative expenses were $38.5 million for the quarter, which the Company refers to as cash selling, general and administrative expenses, a 7% increase over the previous quarter, and a 4% increase over the same quarter last year. Interest and other expenses, net, was $12.6 million for the quarter, a 24% decrease over the previous quarter, and a 2% decrease over the same quarter last year.


Net income for the second quarter was $17.4 million as compared to net income of $15.5 million in the previous quarter and net income of $0.7 million in the same quarter last year. This represents a basic net income per share of $0.46 and diluted net income per share of $0.44 based on a weighted average share count of 38.2 million and 39.3 million, respectively, for the second quarter of 2009.

Adjusted EBITDA, defined as income or loss from operations plus depreciation, amortization, accretion, stock-based compensation expense and restructuring charges, for the quarter was $99.5 million, an increase of 9% from the previous quarter, and up 44% from the same quarter last year.

“Equinix delivered another solid quarter and is on the way to another year of significant growth in a difficult environment,” said Steve Smith, president and CEO of Equinix. “While we continue to monitor our leading indicators, given the strong first half performance, and the targeted expansions in key markets, we are well-positioned to deliver strong returns from our expansion decisions.”

As of June 30, 2009, the Company’s cash, cash equivalents and investments were $603.4 million, as compared to $307.9 million as of December 31, 2008.

Capital expenditures in the second quarter were $76.8 million, of which $13.4 million was attributed to ongoing capital expenditures and $63.4 million was attributed to expansion capital expenditures.

Company Metrics

Adoption of Recent Accounting Pronouncements

As a result of the Company’s adoption of FASB Staff Position No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion” and FASB Staff Position No. EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” effective January 1, 2009, the Company adjusted its comparative condensed consolidated financial statements previously issued to reflect such changes in accounting principle.


Business Outlook

For the third quarter of 2009, the Company expects revenues to be in the range of $221.0 to $225.0 million. Cash gross margins are expected to range between 63% and 64% and include incremental costs from expansion IBX centers opening in the quarter. Cash selling, general and administrative expenses are expected to be approximately $43.0 million. Adjusted EBITDA for the quarter is expected to be between $96.0 and $100.0 million, and excludes any costs associated with the Company’s recently announced Chicago 4 (CH4) IBX Shared Suite, which the Company is currently reviewing for lease accounting treatment. Capital expenditures for the third quarter of 2009 are expected to be $140.0 to $150.0 million, comprised of approximately $15.0 million of ongoing capital expenditures and $125.0 to $135.0 million of expansion capital expenditures.

For the full year of 2009, total revenues are expected to be in the range of $860.0 to $875.0 million. Total year cash gross margins are expected to range between 63% and 64% and include incremental costs from our expansion IBX centers opening throughout the remainder of the year. Cash selling, general and administrative expenses are expected to range between $160.0 million and $170.0 million. Adjusted EBITDA for the year is expected to be between $380.0 and $390.0 million, and excludes any costs associated with the Company’s recently announced Chicago 4 (CH4) IBX Shared Suite, which the Company is currently reviewing for lease accounting treatment. Capital expenditures for 2009 are expected to be approximately $375.0 million, comprised of approximately $60.0 million of ongoing capital expenditures and $315.0 million of expansion capital expenditures. Expansion capital expenditures are for the announced expansions in the Amsterdam, Chicago, Frankfurt, Hong Kong, London, Los Angeles, New York, Paris, Singapore, Sydney and Zurich markets.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, July 22, 2009, at 5:30 p.m. ET (2:30 p.m. PT). To hear the conference call live, please dial 1-773-756-4788 (domestic and international) and reference the passcode (EQIX). A simultaneous live Webcast of the call will be available over the Internet at www.equinix.com/investors.


A replay of the call will be available beginning on Wednesday, July 22, 2009, at 7:30 p.m. (ET) through August 22, 2009 by dialing 1-203-369-1278 and referencing the passcode (3749). In addition, the Webcast will be available on the company's Web site at www.equinix.com/investors.

About Equinix

Equinix, Inc. (Nasdaq: EQIX) provides global data center services that ensure the vitality of the information-driven world. Global enterprises, content and financial companies, and network service providers rely upon Equinix’s insight and expertise to protect and connect their most valued information assets. Equinix operates 43 International Business Exchange™ (IBX®) data centers across 18 markets in North America, Europe and Asia-Pacific.

Important information about Equinix is routinely posted on the investor relations page of its website located at www.equinix.com/investors. We encourage you to check Equinix’s website regularly for the most up-to-date information.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

Equinix and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.


Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non- GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain non-cash or non-recurring items that it believes are not good indicators of the Company's current or future operating performance. These non-cash or non-recurring items are depreciation, amortization, accretion, stock-based compensation and restructuring charges. Legislative and regulatory requirements encourage use of and emphasis on GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. Equinix excludes these non-cash or non-recurring items in order for Equinix's lenders, investors, and industry analysts who review and report on the Company, to better evaluate the Company's operating performance and cash spending levels relative to its industry sector and competitor base.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of our IBX centers and do not reflect our current or future cash spending levels to support our business. Our IBX centers are long-lived assets, and have an economic life greater than ten years. The construction costs of our IBX centers do not recur and future capital expenditures remain minor relative to our initial investment. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX centers, and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix excludes amortization expense related to certain intangible assets, as it represents a cost that may not recur and is not a good indicator of the Company's current or future operating performance. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charge liabilities, as these expenses represent costs, which Equinix believes are not meaningful in evaluating the Company's current operations. Equinix excludes non-cash stock-based compensation expense as it represents expense attributed to stock awards that have no current or future cash obligations. As such, we, and many investors and analysts, exclude this stock-based compensation expense when assessing the cash generating performance of our operations. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to the Company's decision to exit leases for excess space adjacent to several of our IBX centers, which we did not intend to build out, or our decision to reverse such restructuring charges. Management believes such items as restructuring charges are unique transactions that are not expected to recur, and consequently, does not consider these items as a normal component of expenses or income related to current and ongoing operations.

Our management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. However, we have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our operating results in a manner that focuses on what management believes to be our core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note, however, that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. In addition, whenever Equinix uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how it was calculated for the three and six months ended June 30, 2009 and 2008, presented within this press release.


 
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION
(in thousands, except per share data)
(unaudited)
         
 
Three Months Ended Six Months Ended
As Adjusted As Adjusted
June 30, March 31, June 30, June 30, June 30,
  2009     2009     2008     2009     2008

 

 
Recurring revenues $ 205,313 $ 191,287 $ 163,395 $ 396,600 $ 313,754
Non-recurring revenues   7,855     7,944     8,649     15,799     16,508  
Revenues 213,168 199,231 172,044 412,399 330,262
 
Cost of revenues   118,534     111,805     102,039     230,339     196,548  

Gross profit

  94,634     87,426     70,005     182,060     133,714  
 
Operating expenses:
Sales and marketing 16,369 14,403 15,290 30,772 30,641
General and administrative 37,456 35,150 41,445 72,606 75,821
Restructuring charges   (220 )   (5,833 )   -     (6,053 )   -  

Total operating expenses

  53,605     43,720     56,735     97,325     106,462  
 
Income from operations   41,029     43,706     13,270     84,735     27,252  
 
Interest and other income (expense):
Interest income 680 916 2,411 1,596 5,852
Interest expense (15,912 ) (13,451 ) (14,313 ) (29,363 ) (29,508 )
Net impairment loss - (2,687 ) - (2,687 ) -
Other income (expense)   2,610     (1,419 )   (918 )   1,191     1,122  

Total interest and other, net

  (12,622 )   (16,641 )   (12,820 )   (29,263 )   (22,534 )
 
Net income before income taxes 28,407 27,065 450 55,472 4,718
 
Income tax benefit (expense) (10,967 ) (11,608 ) 258 (22,575 ) (213 )
         
Net income $ 17,440   $ 15,457   $ 708   $ 32,897   $ 4,505  
 
Net income per share:
 
Basic net income per share $ 0.46   $ 0.41   $ 0.02   $ 0.87   $ 0.12  
 
Diluted net income per share $ 0.44   $ 0.40   $ 0.02   $ 0.84   $ 0.12  
 

Shares used in computing basic net income per share

  38,152     37,861     36,964     38,007     36,827  
 

Shares used in computing diluted net income per share

  39,318     38,739     37,968     39,008     37,718  
 

EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION
(in thousands)
(unaudited)
           
 
Three Months Ended Six Months Ended
As Adjusted As Adjusted
June 30, March 31, June 30, June 30, June 30,
  2009     2009     2008     2009     2008  
 
Recurring revenues $ 205,313 $ 191,287 $ 163,395 $ 396,600 $ 313,754
Non-recurring revenues   7,855     7,944     8,649     15,799     16,508  
Revenues (1)   213,168     199,231     172,044     412,399     330,262  
 
Cash cost of revenues (2)   75,177     71,939     66,088     147,116     127,849  
Cash gross profit (3)   137,991     127,292     105,956     265,283     202,413  
 
Cash operating expenses (4):

Cash sales and marketing expenses (5)

12,204 10,980 10,911 23,184 22,388
Cash general and administrative expenses (6)   26,253     24,934     25,911     51,187     48,622  
Total cash operating expenses (7)   38,457     35,914     36,822     74,371     71,010  
 
Adjusted EBITDA (8) $ 99,534   $ 91,378   $ 69,134   $ 190,912   $ 131,403  
 
Cash gross margins (9)   65 %   64 %   62 %   64 %   61 %
 
Adjusted EBITDA margins (10)   47 %   46 %   40 %   46 %   40 %
 
Adjusted EBITDA flow-through rate (11)   59 %   85 %   50 %   79 %   50 %
       
 
(1) The geographic split of our revenues on a services basis is presented below:
 
United States Revenues:
 
Colocation $ 104,337 $ 99,004 $ 83,053 $ 203,341 $ 158,350
Interconnection 21,956 21,516 20,106 43,472 39,125
Managed infrastructure 522 569 503 1,091 1,057
Rental   118     161     117     279     365  
Recurring revenues 126,933 121,250 103,779 248,183 198,897
Non-recurring revenues   2,813     3,644     3,468     6,457     7,546  
Revenues   129,746     124,894     107,247     254,640     206,443  
 
Asia-Pacific Revenues:
 
Colocation 20,847 19,218 13,485 40,065 25,296
Interconnection 2,516 2,296 1,648 4,812 3,183
Managed infrastructure 3,590 3,535 3,525 7,125 7,187
Rental   -     -     -     -     -  
Recurring revenues 26,953 25,049 18,658 52,002 35,666
Non-recurring revenues   1,413     1,488     1,946     2,901     3,111  
Revenues   28,366     26,537     20,604     54,903     38,777  
 
Europe Revenues:
 
Colocation 46,625 40,227 36,436 86,852 70,677
Interconnection 1,425 1,385 1,062 2,810 2,055
Managed infrastructure 3,256 3,273 3,381 6,529 6,266
Rental   121     103     79     224     193  
Recurring revenues 51,427 44,988 40,958 96,415 79,191
Non-recurring revenues   3,629     2,812     3,235     6,441     5,851  
Revenues   55,056     47,800     44,193     102,856     85,042  
 
Worldwide Revenues:
 
Colocation 171,809 158,449 132,974 330,258 254,323
Interconnection 25,897 25,197 22,816 51,094 44,363
Managed infrastructure 7,368 7,377 7,409 14,745 14,510
Rental   239     264     196     503     558  
Recurring revenues 205,313 191,287 163,395 396,600 313,754
Non-recurring revenues   7,855     7,944     8,649     15,799     16,508  
Revenues $ 213,168   $ 199,231   $ 172,044   $ 412,399   $ 330,262  
 
(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

 
Cost of revenues $ 118,534 $ 111,805 $ 102,039 $ 230,339 $ 196,548
Depreciation, amortization and accretion expense (41,899 ) (38,772 ) (34,743 ) (80,671 ) (66,521 )
Stock-based compensation expense   (1,458 )   (1,094 )   (1,208 )   (2,552 )   (2,178 )
Cash cost of revenues $ 75,177   $ 71,939   $ 66,088   $ 147,116   $ 127,849  
 
The geographic split of our cash cost of revenues is presented below:
 
U.S. cash cost of revenues $ 40,054 $ 38,601 $ 33,587 $ 78,655 $ 66,593
Asia-Pacific cash cost of revenues 10,451 9,811 8,872 20,262 16,641
Europe cash cost of revenues   24,672     23,527     23,629     48,199     44,615  
Cash cost of revenues $ 75,177   $ 71,939   $ 66,088   $ 147,116   $ 127,849  
 
(3) We define cash gross profit as revenues less cash cost of revenues (as defined above).
 
(4)

We define cash operating expenses as operating expenses less depreciation, amortization, stock-based compensation, restructuring charges and gains on asset sales. We also refer to cash operating expenses as cash selling, general and administrative expenses or "cash SG&A".

 
(5)

We define cash sales and marketing expenses as sales and marketing expenses less depreciation, amortization and stock-based compensation as presented below:

 
Sales and marketing expenses $ 16,369 $ 14,403 $ 15,290 $ 30,772 $ 30,641
Depreciation and amortization expense (1,327 ) (1,243 ) (1,626 ) (2,570 ) (3,199 )
Stock-based compensation expense   (2,838 )   (2,180 )   (2,753 )   (5,018 )   (5,054 )
Cash sales and marketing expenses $ 12,204   $ 10,980   $ 10,911   $ 23,184   $ 22,388  
 
(6)

We define cash general and administrative expenses as general and administrative expenses less depreciation, amortization and stock-based compensation as presented below:

 
General and administrative expenses $ 37,456 $ 35,150 $ 41,445 $ 72,606 $ 75,821
Depreciation and amortization expense (2,040 ) (1,952 ) (2,447 ) (3,992 ) (5,042 )
Stock-based compensation expense   (9,163 )   (8,264 )   (13,087 )   (17,427 )   (22,157 )
Cash general and administrative expenses $ 26,253   $ 24,934   $ 25,911   $ 51,187   $ 48,622  
 
(7) Our cash operating expenses, or cash SG&A, as defined above, is presented below:
 
Cash sales and marketing expenses $ 12,204 $ 10,980 $ 10,911 $ 23,184 $ 22,388
Cash general and administrative expenses   26,253     24,934     25,911     51,187     48,622  
Cash SG&A $ 38,457   $ 35,914   $ 36,822   $ 74,371   $ 71,010  
 
The geographic split of our cash operating expenses, or cash SG&A, is presented below:
 
U.S. cash SG&A $ 23,678 $ 23,330 $ 22,846 $ 47,008 $ 42,900
Asia-Pacific cash SG&A 4,996 4,690 4,686 9,686 9,720
Europe cash SG&A   9,783     7,894     9,290     17,677     18,390  
Cash SG&A $ 38,457   $ 35,914   $ 36,822   $ 74,371   $ 71,010  
 
(8)

We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-based compensation expense and restructuring charges as presented below:

 
Income from operations $ 41,029 $ 43,706 $ 13,270 $ 84,735 $ 27,252
Depreciation, amortization and accretion expense 45,266 41,967 38,816 87,233 74,762
Stock-based compensation expense 13,459 11,538 17,048 24,997 29,389
Restructuring charges   (220 )   (5,833 )   -     (6,053 )   -  
Adjusted EBITDA $ 99,534   $ 91,378   $ 69,134   $ 190,912   $ 131,403  
 
The geographic split of our adjusted EBITDA is presented below:
 
U.S. income from operations $ 28,748 $ 33,941 $ 15,279 $ 62,689 $ 28,534
U.S. depreciation, amortization and accretion expense 27,274 26,039 24,646 53,313 47,889
U.S. stock-based compensation expense 10,212 8,816 10,889 19,028 20,527
U.S. restructuring charges   (220 )   (5,833 )   -     (6,053 )   -  
U.S. adjusted EBITDA   66,014     62,963     50,814     128,977     96,950  
 
Asia-Pacific income from operations 4,394 4,339 1,138 8,733 1,813
Asia-Pacific depreciation, amortization and accretion expense 6,758 6,327 4,449 13,085 8,073
Asia-Pacific stock-based compensation expense   1,767     1,370     1,459     3,137     2,530  
Asia-Pacific adjusted EBITDA   12,919     12,036     7,046     24,955     12,416  
 
Europe income (loss) from operations 7,887 5,426 (3,147 ) 13,313 (3,095 )
Europe depreciation, amortization and accretion expense 11,234 9,601 9,721 20,835 18,800
Europe stock-based compensation expense   1,480     1,352     4,700     2,832     6,332  
Europe adjusted EBITDA   20,601     16,379     11,274     36,980     22,037  
 
Adjusted EBITDA $ 99,534   $ 91,378   $ 69,134   $ 190,912   $ 131,403  
 
(9) We define cash gross margins as cash gross profit divided by revenues.
 
Our cash gross margins by geographic region is presented below:
 
U.S. cash gross margins   69 %   69 %   69 %   69 %   68 %
 
Asia-Pacific cash gross margins   63 %   63 %   57 %   63 %   57 %
 
Europe cash gross margins   55 %   51 %   47 %   53 %   48 %
 
(10) We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
 
U.S. adjusted EBITDA margins   51 %   50 %   47 %   51 %   47 %
 
Asia-Pacific adjusted EBITDA margins   46 %   45 %   34 %   45 %   32 %
 
Europe adjusted EBITDA margins   37 %   34 %   26 %   36 %   26 %
 
(11)

We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:

 
Adjusted EBITDA - current period $ 99,534 $ 91,378 $ 69,134 $ 190,912 $ 131,403
Less adjusted EBITDA - prior period   (91,378 )   (84,100 )   (62,269 )   (161,073 )   (87,701 )
Adjusted EBITDA growth $ 8,156   $ 7,278   $ 6,865   $ 29,839   $ 43,702  
 
Revenues - current period $ 213,168 $ 199,231 $ 172,044 $ 412,399 $ 330,262
Less revenues - prior period   (199,231 )   (190,683 )   (158,218 )   (374,418 )   (242,496 )
Revenue growth $ 13,937   $ 8,548   $ 13,826   $ 37,981   $ 87,766  
 
Adjusted EBITDA flow-through rate   59 %   85 %   50 %   79 %   50 %
 

EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
   
As Adjusted
Assets June 30, December 31,
  2009     2008  
 
Cash and cash equivalents $ 405,217 $ 220,207
Short-term investments 175,854 42,112
Accounts receivable, net 67,312 66,029
Deferred tax assets 18,996 35,936
Other current assets   22,081     15,227  
Total current assets 689,460 379,511
Long-term investments 22,299 45,626
Property, plant and equipment, net 1,590,756 1,492,830
Goodwill 382,112 342,829
Intangible assets, net 54,619 50,918
Deferred tax assets 43,332 65,228
Other assets   60,787     57,794  
Total assets $ 2,843,365   $ 2,434,736  
 
Liabilities and Stockholders' Equity
 
Accounts payable and accrued expenses $ 88,454 $ 74,317
Accrued property and equipment 59,773 89,518
Current portion of capital lease and other financing obligations 6,036 4,499
Current portion of mortgage and loans payable 52,113 52,054
Current portion of convertible debt - 19,150
Other current liabilities   46,259     50,455  
Total current liabilities 252,635 289,993
Capital lease and other financing obligations, less current portion 138,532 133,031
Mortgage and loans payable, less current portion 372,491 386,446
Convertible debt, less current portion 883,131 608,510
Other liabilities   103,954     100,095  
Total liabilities   1,750,743     1,518,075  
 
Common stock 39 38
Additional paid-in capital 1,608,618 1,524,834
Accumulated other comprehensive income (loss) (93,521 ) (152,800 )
Accumulated deficit   (422,514 )   (455,411 )
Total stockholders' equity   1,092,622     916,661  
 
Total liabilities and stockholders' equity $ 2,843,365   $ 2,434,736  
 
       
 
Ending headcount by geographic region is as follows:
 
U.S. headcount 680 646
Asia-pacific headcount 210 190
Europe headcount   314     279  

Total headcount

  1,204     1,115  
 

EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)
   
As Adjusted
June 30, December 31,
2009 2008
 
Capital lease and other financing obligations $ 144,568 $ 137,530
 
European financing 133,986 130,981
Chicago IBX financing 109,991 109,991
Mortgage payable 93,075 94,362
Asia-Pacific financing 76,848 87,009
Netherlands financing 5,779 6,485
Other note payable   4,925   9,672
Total mortgage and loans payable   424,604   438,500
 
Convertible debt, net of debt discount 883,131 627,660
Plus debt discount   136,605   37,476
Total convertible debt principal   1,019,736   665,136
 
Total debt outstanding $ 1,588,908 $ 1,241,166
 

EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
         
 
Three Months Ended Six Months Ended
As Adjusted As Adjusted
June 30, March 31, June 30, June 30, June 30,
  2009     2009     2008     2009     2008  
 
Cash flows from operating activities:
Net income $ 17,440 $ 15,457 $ 708 $ 32,897 $ 4,505

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion 45,266 41,967 38,816 87,233 74,762
Stock-based compensation 13,459 11,538 17,048 24,997 29,389
Debt issuance costs and debt discount 3,277 2,437 2,668 5,714 5,672
Restructuring charges (220 ) (5,833 ) - (6,053 ) -
Other reconciling items 921 2,774 (1,255 ) 3,695 (870 )
Changes in operating assets and liabilities:
Accounts receivable (5,838 ) 4,812 (4,037 ) (1,026 ) (1,531 )
Deferred tax assets, net 8,068 8,871 - 16,939 -
Accounts payable and accrued expenses 6,683 6,282 4,430 12,965 5,537
Other assets and liabilities   (10,317 )   (1,601 )   6,580     (11,918 )   10,478  

Net cash provided by operating activities

  78,739     86,704     64,958     165,443     127,942  
Cash flows from investing activities:
Purchases, sales and maturities of investments, net (136,157 ) 23,620 (107,849 ) (112,537 ) (78,931 )
Purchase of Virtu, less cash acquired - - - - (23,241 )
Purchases of other property and equipment (76,816 ) (74,969 ) (84,458 ) (151,785 ) (210,101 )
Accrued property and equipment 6,050 (33,872 ) (23,176 ) (27,822 ) (26,241 )
Other investing activities   2,863     7,336     (732 )   10,199     (13,901 )
Net cash used in investing activities   (204,060 )   (77,885 )   (216,215 )   (281,945 )   (352,415 )
Cash flows from financing activities:
Proceeds from employee equity awards 4,892 4,062 12,000 8,954 19,238
Proceeds from convertible debt 373,750 - - 373,750 -
Proceeds from mortgage and loans payable - 744 35,643 744 77,525
Repayment of capital lease and other financing obligations (1,369 ) (969 ) (952 ) (2,338 ) (1,918 )
Repayment of mortgage and loans payable (16,312 ) (7,210 ) (4,330 ) (23,522 ) (7,422 )
Capped call costs (49,664 ) - - (49,664 ) -
Convertible debt issuance costs (9,956 ) - - (9,956 ) -
Other financing activities   -     (252 )   (437 )   (252 )   (901 )
Net cash provided by (used in) financing activities   301,341     (3,625 )   41,924     297,716     86,522  
Effect of foreign currency exchange rates on cash and cash equivalents   7,148     (3,352 )   (374 )   3,796     (1,555 )
Net increase (decrease) in cash and cash equivalents 183,168 1,842 (109,707 ) 185,010 (139,506 )
Cash and cash equivalents at beginning of period   222,049     220,207     260,834     220,207     290,633  
Cash and cash equivalents at end of period $ 405,217   $ 222,049   $ 151,127   $ 405,217   $ 151,127  
 
 
Free cash flow (1) $ 10,836   $ (14,801 ) $ (43,408 ) $ (3,965 ) $ (224,473 )
 
Adjusted free cash flow (2) $ 10,836   $ (14,801 ) $ (43,408 ) $ (3,965 ) $ (201,232 )
   
 
(1)

We define free cash flow as net cash provided by operating activities plus net cash used in investing activities (excluding the net purchases, sales and maturities of investments) as presented below:

 
Net cash provided by operating activities as presented above $ 78,739 $ 86,704 $ 64,958 $ 165,443 $ 127,942
Net cash used in investing activities as presented above (204,060 ) (77,885 ) (216,215 ) (281,945 ) (352,415 )
Purchases, sales and maturities of investments, net   136,157     (23,620 )   107,849     112,537     78,931  
Free cash flow (negative free cash flow) $ 10,836   $ (14,801 ) $ (43,408 ) $ (3,965 ) $ (224,473 )
 
(2)

We define adjusted free cash flow as free cash flow (as defined above) excluding any purchases or sales of real estate and acquisitions and proceeds from asset sales as presented below:

 
Free cash flow (as defined above) $ 10,836 $ (14,801 ) $ (43,408 ) $ (3,965 ) $ (224,473 )
Less purchase of Virtu, less cash acquired   -     -     -     -     23,241  
Adjusted free cash flow (negative adjusted free cash flow) $ 10,836   $ (14,801 ) $ (43,408 ) $ (3,965 ) $ (201,232 )

CONTACT:
K/F Communications, Inc.
David Fonkalsrud, 415-255-6506 (Media)
dave@kfcomm.com
or
Equinix, Inc.
Jason Starr, 650-513-7402 (Investor Relations)
jstarr@equinix.com