Exhibit 99.1

Equinix Reports Third Quarter 2009 Results

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.


Company Metrics

Changes in Estimates – Property, Plant and Equipment

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):

  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

Adoption of Recent Accounting Pronouncements

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.


Business Outlook

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.

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 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.

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, 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.

Forward Looking Statements

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.
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
 

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