FOSTER CITY, Calif.--(BUSINESS WIRE)--October 21, 2009--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended September 30, 2009.

Revenues were $227.6 million for the third 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 $218.3 million for the third quarter, a 6% increase over the previous quarter, and a 26% increase over the same quarter last year. Non-recurring revenues were $9.3 million in the quarter, consisting primarily of professional services and installation fees.

Cost of revenues was $126.0 million for the third quarter, a 6% increase over the previous quarter and a 15% increase over the same quarter last year. Excluding depreciation, amortization, accretion and stock-based compensation of $44.1 million for the third quarter, cost of revenues was $81.9 million for the third quarter, which the Company refers to as cash cost of revenues, a 9% increase over the previous quarter, and a 16% increase over the same quarter last year. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 64%, down from 65% the previous quarter and up from 62% the same quarter last year.

Selling, general and administrative expenses were $54.6 million for the third quarter, a 1% increase from the previous quarter and a 6% increase over the same quarter last year. Excluding depreciation, amortization and stock-based compensation of $15.0 million for the third quarter, selling, general and administrative expenses were $39.6 million for the third quarter, which the Company refers to as cash selling, general and administrative expenses, a 3% increase over the previous quarter, and a 9% increase over the same quarter last year. Interest and other expenses, net, was $19.4 million for the quarter, a 54% increase over the previous quarter, and a 23% increase over the same quarter last year.

Net income for the third quarter was $18.8 million compared to net income of $17.4 million in the previous quarter and net income of $5.6 million in the same quarter last year. This represents a basic net income per share of $0.49 based on a weighted average share count of 38.8 million and a diluted net income per share of $0.47 based on a weighted average share count of 39.9 million for the third quarter of 2009.

Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation expense, restructuring charges and acquisition costs, for the third quarter was $106.0 million, an increase of 7% from the previous quarter, and up 38% from the same quarter last year.

“Equinix delivered strong results in the third quarter, driven by solid demand and sound execution across all areas of the business,” said Steve Smith, president and CEO of Equinix. “As we have continued our disciplined expansion strategy throughout the challenging macroeconomic climate of the past several quarters, we are well positioned to continue building upon our global market leadership position, and we continue to see a strong opportunity in front of us as the economy begins to recover.”

Capital expenditures in the third quarter were $88.7 million, of which $14.7 million was attributed to ongoing capital expenditures and $74.0 million was attributed to expansion capital expenditures.

The Company generated cash from operating activities of $107.5 million for the third quarter as compared to $78.7 million in the previous quarter, and $63.3 million the same quarter last year. Cash used in investing activities was $260.5 million in the third quarter as compared to $204.1 million in the previous quarter and $82.4 million for the same quarter last year.

As of September 30, 2009, the Company’s cash, cash equivalents and investments were $627.4 million, as compared to $603.4 million as of June 30, 2009.

During the three months ended September 30, 2009, the Company reassessed the estimated useful lives of its property, plant and equipment as part of a review of the assumptions used to estimate the useful lives of its property, plant and equipment. This reassessment has generally resulted in extended estimated useful lives for many of the Company’s property, plant and equipment categories, such as IBX plant and machinery, resulting in a decrease to depreciation expense.

The change in the estimated useful lives of certain of the Company’s property, plant and equipment is accounted for as a change in accounting estimate on a prospective basis from the three months ended September 30, 2009 under the accounting standard related to a change in accounting estimate.

The change in estimated useful lives of certain of the Company’s property, plant and equipment, which has decreased the Company’s depreciation expense by $4.8 million for the three and nine months ended September 30, 2009, has resulted in the following increases (in thousands, except per share amounts):

As a result of the Company’s adoption of a FASB accounting standard related to the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, effective January 1, 2009 and a FASB accounting standard related to the accounting for instruments granted in share-based payment transactions that are considered participating securities prior to vesting and should therefore be included in the calculation of earnings per share effective January 1, 2009, the Company adjusted its comparative condensed consolidated financial statements previously issued to reflect such changes in accounting principle.

For the full year of 2009, total revenues are expected to be in the range of $875.0 to $880.0 million. Total year cash gross margins are expected to range between approximately 63% and 64%. Cash selling, general and administrative expenses are expected to be approximately $160.0 million. Adjusted EBITDA for the year is expected to be between $395.0 and $400.0 million. Capital expenditures for 2009 are expected to be in the range of $390.0 to $400.0 million, comprised of approximately $60.0 million of ongoing capital expenditures and $330.0 to $340.0 million of expansion capital expenditures.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, October 21, 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, under the Investor Relations heading.

A replay of the call will be available beginning on Wednesday, October 21, 2009, at 7:30 p.m. (ET) through November 21, 2009 by dialing 1-203-369-1619. In addition, the Webcast will be available on the company's Web site at www.equinix.com. No password is required for either method of replay.

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 45 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.

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, restructuring charges and acquisition costs. 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. Equinix excludes acquisition costs from its non-GAAP financial measures. The acquisition costs relate to costs the Company incurs in connection with business combinations. Management believes such items as restructuring charges and acquisition costs are unique transactions, 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 nine months ended September 30, 2009 and 2008, presented within this press release.

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.

EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION
(in thousands, except per share data)
(unaudited)

	Three Months Ended									Nine Months Ended
							As Adjusted						As Adjusted
	September 30,			June 30,			September 30,			September 30,			September 30,
	2009			2009			2008			2009			2008

Recurring revenues	$	218,334		$	205,313		$	173,517		$	614,934		$	487,271
Non-recurring revenues		9,224			7,855			10,218			25,023			26,726
Revenues		227,558			213,168			183,735			639,957			513,997

Cost of revenues		126,007			118,534			109,905			356,346			306,453
Gross profit		101,551			94,634			73,830			283,611			207,544

Operating expenses:
Sales and marketing		15,543			16,369			16,009			46,315			46,650
General and administrative		39,071			37,456			35,529			111,677			111,350
Restructuring charges		-			(220	)		799			(6,053	)		799
Acquisition costs		1,379			-			-			1,379			-
Total operating expenses		55,993			53,605			52,337			153,318			158,799

Income from operations		45,558			41,029			21,493			130,293			48,745

Interest and other income (expense):
Interest income		353			680			1,968			1,949			7,820
Interest expense		(22,256	)		(15,912	)		(15,671	)		(51,619	)		(45,179	)
Other-than-temporary impairment loss on investments		-			-			(1,527	)		(2,687	)		(1,527	)
Other income (expense)		2,484			2,610			(520	)		3,675			602
Total interest and other, net		(19,419	)		(12,622	)		(15,750	)		(48,682	)		(38,284	)

Net income before income taxes		26,139			28,407			5,743			81,611			10,461

Income tax expense		(7,327	)		(10,967	)		(187	)		(29,902	)		(400	)

Net income	$	18,812		$	17,440		$	5,556		$	51,709		$	10,061

Net income per share:

Basic net income per share	$	0.49		$	0.46		$	0.15		$	1.35		$	0.27

Diluted net income per share	$	0.47		$	0.44		$	0.15		$	1.32		$	0.27

Shares used in computing basic net income per share		38,787			38,152			37,268			38,270			36,976

Shares used in computing diluted net income per share		39,887			39,318			38,023			39,305			37,854

EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION
(in thousands)
(unaudited)

					Three Months Ended									Nine Months Ended
											As Adjusted						As Adjusted
					September 30,			June 30,			September 30,			September 30,			September 30,
					2009			2009			2008			2009			2008

Recurring revenues					$	218,334		$	205,313		$	173,517		$	614,934		$	487,271
Non-recurring revenues						9,224			7,855			10,218			25,023			26,726
		Revenues (1)				227,558			213,168			183,735			639,957			513,997

Cash cost of revenues (2)						81,931			75,177			70,601			229,047			198,450
				Cash gross profit (3)		145,627			137,991			113,134			410,910			315,547

Cash operating expenses (4):
		Cash sales and marketing expenses(5)				11,453			12,204			12,082			34,637			34,470
		Cash general and administrative expenses (6)				28,138			26,253			24,079			79,325			72,701
				Total cash operating expenses (7)		39,591			38,457			36,161			113,962			107,171

Adjusted EBITDA (8)					$	106,036		$	99,534		$	76,973		$	296,948		$	208,376

Cash gross margins (9)						64	%		65	%		62	%		64	%		61	%

Adjusted EBITDA margins (10)						47	%		47	%		42	%		46	%		41	%

Adjusted EBITDA flow-through rate (11)						45	%		59	%		67	%		71	%		48	%


(1	)	The geographic split of our revenues on a services basis is presented below:

		United States Revenues:

		Colocation			$	109,161		$	104,337		$	87,988		$	312,502		$	246,338
		Interconnection				22,494			21,956			20,756			65,966			59,881
		Managed infrastructure				529			522			545			1,620			1,602
		Rental				123			118			133			402			498
			Recurring revenues			132,307			126,933			109,422			380,490			308,319
		Non-recurring revenues				4,027			2,813			5,437			10,484			12,983
			Revenues			136,334			129,746			114,859			390,974			321,302

		Asia-Pacific Revenues:

		Colocation				22,768			20,847			14,592			62,833			39,888
		Interconnection				2,831			2,516			1,897			7,643			5,080
		Managed infrastructure				3,515			3,590			3,432			10,640			10,619
		Rental				-			-			-			-			-
			Recurring revenues			29,114			26,953			19,921			81,116			55,587
		Non-recurring revenues				1,304			1,413			1,658			4,205			4,769
			Revenues			30,418			28,366			21,579			85,321			60,356

		Europe Revenues:

		Colocation				51,855			46,625			39,358			138,707			110,035
		Interconnection				1,910			1,662			1,462			4,957			3,517
		Managed infrastructure				2,976			3,019			3,233			9,268			9,499
		Rental				172			121			121			396			314
			Recurring revenues			56,913			51,427			44,174			153,328			123,365
		Non-recurring revenues				3,893			3,629			3,123			10,334			8,974
			Revenues			60,806			55,056			47,297			163,662			132,339

		Worldwide Revenues:

		Colocation				183,784			171,809			141,938			514,042			396,261
		Interconnection				27,235			26,134			24,115			78,566			68,478
		Managed infrastructure				7,020			7,131			7,210			21,528			21,720
		Rental				295			239			254			798			812
			Recurring revenues			218,334			205,313			173,517			614,934			487,271
		Non-recurring revenues				9,224			7,855			10,218			25,023			26,726
			Revenues		$	227,558		$	213,168		$	183,735		$	639,957		$	513,997

(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			$	126,007		$	118,534		$	109,905		$	356,346		$	306,453
		Depreciation, amortization and accretion expense				(42,189	)		(41,899	)		(38,047	)		(122,860	)		(104,568	)
		Stock-based compensation expense				(1,887	)		(1,458	)		(1,257	)		(4,439	)		(3,435	)
			Cash cost of revenues		$	81,931		$	75,177		$	70,601		$	229,047		$	198,450

		The geographic split of our cash cost of revenues is presented below:

		U.S. cash cost of revenues			$	43,123		$	40,054		$	37,506		$	121,778		$	104,099
		Asia-Pacific cash cost of revenues				10,697			10,451			8,848			30,959			25,489
		Europe cash cost of revenues				28,111			24,672			24,247			76,310			68,862
			Cash cost of revenues		$	81,931		$	75,177		$	70,601		$	229,047		$	198,450

(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, acquisition costs 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			$	15,543		$	16,369		$	16,009		$	46,315		$	46,650
		Depreciation and amortization expense				(1,409	)		(1,327	)		(1,560	)		(3,979	)		(4,759	)
		Stock-based compensation expense				(2,681	)		(2,838	)		(2,367	)		(7,699	)		(7,421	)
			Cash sales and marketing expenses		$	11,453		$	12,204		$	12,082		$	34,637		$	34,470

(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			$	39,071		$	37,456		$	35,529		$	111,677		$	111,350
		Depreciation and amortization expense				(1,468	)		(2,040	)		(2,512	)		(5,460	)		(7,554	)
		Stock-based compensation expense				(9,465	)		(9,163	)		(8,938	)		(26,892	)		(31,095	)
			Cash general and administrative expenses		$	28,138		$	26,253		$	24,079		$	79,325		$	72,701

(7	)	Our cash operating expenses, or cash SG&A, as defined above, is presented below:

		Cash sales and marketing expenses			$	11,453		$	12,204		$	12,082		$	34,637		$	34,470
		Cash general and administrative expenses				28,138			26,253			24,079			79,325			72,701
			Cash SG&A		$	39,591		$	38,457		$	36,161		$	113,962		$	107,171

		The geographic split of our cash operating expenses, or cash SG&A, is presented below:

		U.S. cash SG&A			$	25,187		$	23,678		$	22,728		$	72,195		$	65,628
		Asia-Pacific cash SG&A				5,023			4,996			4,638			14,709			14,358
		Europe cash SG&A				9,381			9,783			8,795			27,058			27,185
			Cash SG&A		$	39,591		$	38,457		$	36,161		$	113,962		$	107,171

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

		Income from operations			$	45,558		$	41,029		$	21,493		$	130,293		$	48,745
		Depreciation, amortization and accretion expense				45,066			45,266			42,119			132,299			116,881
		Stock-based compensation expense				14,033			13,459			12,562			39,030			41,951
		Restructuring charges				-			(220	)		799			(6,053	)		799
		Acquisition costs				1,379			-			-			1,379			-
			Adjusted EBITDA		$	106,036		$	99,534		$	76,973		$	296,948		$	208,376

		The geographic split of our adjusted EBITDA is presented below:

		U.S. income from operations			$	31,571		$	28,748		$	16,210		$	94,260		$	44,744
		U.S. depreciation, amortization and accretion expense				25,838			27,274			27,317			79,151			75,206
		U.S. stock-based compensation expense				10,295			10,212			10,299			29,323			30,826
		U.S. restructuring charges				-			(220	)		799			(6,053	)		799
		U.S. acquisition costs				320			-			-			320			-
			U.S. adjusted EBITDA			68,024			66,014			54,625			197,001			151,575

		Asia-Pacific income from operations				6,892			4,394			2,119			15,625			3,932
		Asia-Pacific depreciation, amortization and accretion expense				5,612			6,758			4,419			18,697			12,492
		Asia-Pacific stock-based compensation expense				2,194			1,767			1,555			5,331			4,085
			Asia-Pacific adjusted EBITDA			14,698			12,919			8,093			39,653			20,509

		Europe income from operations				7,095			7,887			3,164			20,408			69
		Europe depreciation, amortization and accretion expense				13,616			11,234			10,383			34,451			29,183
		Europe stock-based compensation expense				1,544			1,480			708			4,376			7,040
		Europe acquisition costs				1,059			-			-			1,059			-
			Europe adjusted EBITDA			23,314			20,601			14,255			60,294			36,292

				Adjusted EBITDA	$	106,036		$	99,534		$	76,973		$	296,948		$	208,376

(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				68	%		69	%		67	%		69	%		68	%

		Asia-Pacific cash gross margins				65	%		63	%		59	%		64	%		58	%

		Europe cash gross margins				54	%		55	%		49	%		53	%		48	%

(10	)	We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

		U.S. adjusted EBITDA margins				50	%		51	%		48	%		50	%		47	%

		Asia-Pacific adjusted EBITDA margins				48	%		46	%		38	%		46	%		34	%

		Europe adjusted EBITDA margins				38	%		37	%		30	%		37	%		27	%

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

		Adjusted EBITDA - current period			$	106,036		$	99,534		$	76,973		$	296,948		$	208,376
		Less adjusted EBITDA - prior period				(99,534	)		(91,378	)		(69,134	)		(230,207	)		(123,012	)
			Adjusted EBITDA growth		$	6,502		$	8,156		$	7,839		$	66,741		$	85,364

		Revenues - current period			$	227,558		$	213,168		$	183,735		$	639,957		$	513,997
		Less revenues - prior period				(213,168	)		(199,231	)		(172,044	)		(546,462	)		(334,333	)
			Revenue growth		$	14,390		$	13,937		$	11,691		$	93,495		$	179,664

		Adjusted EBITDA flow-through rate				45	%		59	%		67	%		71	%		48	%

EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

						As Adjusted
Assets			September 30,			December 31,
			2009			2008

Cash and cash equivalents			$	283,147		$	220,207
Short-term investments				326,234			42,112
Accounts receivable, net				67,589			66,029
Deferred tax assets				15,163			35,936
Other current assets				21,961			15,227
Total current assets				714,094			379,511
Long-term investments				18,061			45,626
Property, plant and equipment, net				1,703,009			1,492,830
Goodwill				377,556			342,829
Intangible assets, net				52,062			50,918
Deferred tax assets				43,938			65,228
Other assets				53,858			57,794
Total assets			$	2,962,578		$	2,434,736

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	104,288		$	74,317
Accrued property and equipment				64,598			89,518
Current portion of capital lease and other financing obligations				6,347			4,499
Current portion of mortgage and loans payable				53,101			52,054
Current portion of convertible debt				-			19,150
Other current liabilities				51,827			50,455
Total current liabilities				280,161			289,993
Capital lease and other financing obligations, less current portion				154,179			133,031
Mortgage and loans payable, less current portion				394,263			386,446
Convertible debt, less current portion				888,364			608,510
Other liabilities				111,177			100,095
Total liabilities				1,828,144			1,518,075

Common stock				39			38
Additional paid-in capital				1,636,984			1,524,834
Accumulated other comprehensive loss				(98,887	)		(152,800	)
Accumulated deficit				(403,702	)		(455,411	)
Total stockholders' equity				1,134,434			916,661

Total liabilities and stockholders' equity			$	2,962,578		$	2,434,736



Ending headcount by geographic region is as follows:

	U.S. headcount			705			646
	Asia-pacific headcount			229			190
	Europe headcount			344			279
		Total headcount		1,278			1,115

EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

						Three Months Ended									Nine Months Ended
												As Adjusted						As Adjusted
						September 30,			June 30,			September 30,			September 30,			September 30,
						2009			2009			2008			2009			2008

Cash flows from operating activities:
		Net income				$	18,812		$	17,440		$	5,556		$	51,709		$	10,061
		Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation, amortization and accretion				45,066			45,266			42,119			132,299			116,881
			Stock-based compensation				14,033			13,459			12,562			39,030			41,951
			Debt issuance costs and debt discount				6,496			3,277			2,963			12,210			8,635
			Restructuring charges				-			(220	)		799			(6,053	)		799
			Other reconciling items				(426	)		921			961			3,269			91
			Changes in operating assets and liabilities:
				Accounts receivable			1,003			(5,838	)		(2,252	)		(23	)		(3,783	)
				Deferred tax assets, net			3,811			8,068			-			20,750			-
				Accounts payable and accrued expenses			5,714			6,683			(522	)		18,248			5,015
				Other assets and liabilities			13,030			(10,317	)		1,135			1,543			11,613
					Net cash provided by operating activities		107,539			78,739			63,321			272,982			191,263
Cash flows from investing activities:
		Purchases, sales and maturities of investments, net					(146,045	)		(136,157	)		2,784			(258,582	)		(76,147	)
		Purchase of Upminster, less cash acquired					(28,176	)		-			-			(28,176	)		-
		Purchase of Virtu, less cash acquired					-			-			-			-			(23,241	)
		Purchases of other property and equipment					(88,655	)		(76,816	)		(95,445	)		(240,440	)		(305,546	)
		Accrued property and equipment					460			6,050			10,226			(27,362	)		(16,015	)
		Other investing activities					1,867			2,863			-			12,066			(13,901	)
					Net cash used in investing activities		(260,549	)		(204,060	)		(82,435	)		(542,494	)		(434,850	)
Cash flows from financing activities:
		Proceeds from employee equity awards					14,096			4,892			6,849			23,050			26,087
		Proceeds from convertible debt					-			373,750			-			373,750			-
		Proceeds from mortgage and loans payable					27,935			-			24,576			28,679			102,101
		Repayment of capital lease and other financing obligations					(1,427	)		(1,369	)		(956	)		(3,765	)		(2,874	)
		Repayment of mortgage and loans payable					(11,003	)		(16,312	)		(4,034	)		(34,525	)		(11,456	)
		Capped call costs				-				(49,664	)		-			(49,664	)		-
		Equity issuance costs					(9	)		(2,786	)		-			(2,795	)		-
		Debt issuance costs					(788	)		(7,170	)		(7	)		(8,210	)		(908	)
					Net cash provided by financing activities		28,804			301,341			26,428			326,520			112,950
Effect of foreign currency exchange rates on cash and cash equivalents							2,136			7,148			2,244			5,932			689
Net increase (decrease) in cash and cash equivalents							(122,070	)		183,168			9,558			62,940			(129,948	)
Cash and cash equivalents at beginning of period							405,217			222,049			151,127			220,207			290,633
Cash and cash equivalents at end of period						$	283,147		$	405,217		$	160,685		$	283,147		$	160,685


Free cash flow (1)						$	(6,965	)	$	10,836		$	(21,898	)	$	(10,930	)	$	(167,440	)

Adjusted free cash flow (2)						$	21,211		$	10,836		$	(21,898	)	$	17,246		$	(144,199	)


(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				$	107,539		$	78,739		$	63,321		$	272,982		$	191,263
		Net cash used in investing activities as presented above					(260,549	)		(204,060	)		(82,435	)		(542,494	)		(434,850	)
		Purchases, sales and maturities of investments, net					146,045			136,157			(2,784	)		258,582			76,147
			Free cash flow (negative free cash flow)			$	(6,965	)	$	10,836		$	(21,898	)	$	(10,930	)	$	(167,440	)

(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)				$	(6,965	)	$	10,836		$	(21,898	)	$	(10,930	)	$	(167,440	)
		Less purchase of Upminster, less cash acquired					28,176			-			-			28,176			-
		Less purchase of Virtu, less cash acquired					-			-			-			-			23,241
			Adjusted free cash flow (negative adjusted free cash flow)			$	21,211		$	10,836		$	(21,898	)	$	17,246		$	(144,199	)

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

	Three months ended		Nine months ended
	September 30, 2009
Income from operations	$	4,804	$	4,804
Net income		2,993		2,993
Earnings per share:
Basic		0.08		0.08
Diluted		0.08		0.08

EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)

				As Adjusted
		September 30,		December 31,
		2009		2008

Capital lease and other financing obligations		$	160,526	$	137,530

European financing			135,455		130,981
Chicago IBX financing			109,991		109,991
Mortgage payable			92,432		94,362
Asia-Pacific financing			72,990		87,009
Singapore financing			23,764		-
Netherlands financing			10,247		6,485
Other note payable			2,485		9,672
	Total mortgage and loans payable		447,364		438,500

Convertible debt, net of debt discount			888,364		627,660
Plus debt discount			131,372		37,476
	Total convertible debt principal		1,019,736		665,136

Total debt outstanding		$	1,627,626	$	1,241,166