FOSTER CITY, Calif.--(BUSINESS WIRE)--February 10, 2010--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly and year-end results for the period ended December 31, 2009.

Revenues were $242.6 million for the fourth quarter, a 7% increase over the previous quarter, and $882.5 million for the year ended December 31, 2009, a 25% increase over 2008 revenues. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $231.5 million for the fourth quarter, a 7% increase over the previous quarter, and $841.8 million for the year ended December 31, 2009, a 26% increase over 2008. Non-recurring revenues were $11.1 million in the quarter and $40.7 million for the year ended December 31, 2009.

“Equinix closed out a solid year with a strong Q4, executing well and delivering on objectives across all three regions throughout 2009,” said Steve Smith, president and CEO of Equinix. “The disciplined investments that we’ve been making in our capacity and scale, along with strong customer demand, position Equinix well for continued industry leading growth.”

Cost of revenues were $127.1 million for the fourth quarter, a 1% increase from the previous quarter, and $483.4 million for the year ended December 31, 2009, a 17% increase over 2008. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $41.6 million for the fourth quarter and $168.8 million for the year, were $85.5 million for the fourth quarter, a 4% increase over the previous quarter, and $314.6 million for the year ended December 31, 2009, a 19% increase over 2008. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 65%, up from 64% the previous quarter and unchanged from the same quarter last year. Cash gross margins were 64% for the full year of 2009, up from 62% for the prior year.

Selling, general and administrative expenses were $60.9 million for the fourth quarter, a 12% increase over the previous quarter and $218.9 million for the year ended December 31, 2009, a 3% increase over 2008. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $15.5 million for the fourth quarter and $59.6 million for the year, were $45.4 million for the fourth quarter, a 15% increase over the previous quarter, and $159.3 million for 2009, an 8% increase over 2008.

Acquisition costs were $3.8 million for the fourth quarter and $5.2 million for the year ended December 31, 2009. We did not expense acquisition costs in the prior year. Our acquisition costs for the fourth quarter were related to the pending Switch and Data acquisition.

Net income for the fourth quarter was $17.7 million. This represents a basic net income per share of $0.45 and diluted net income per share of $0.44 based on a weighted average share count of 39.1 million and 40.5 million, respectively, for the fourth quarter of 2009. Net income for the year ended December 31, 2009 was $69.4 million. This represents a basic net income per share of $1.80 and diluted net income per share of $1.75 based on a weighted average share count of 38.5 million and 39.7 million, respectively, for the year ended December 31, 2009.

Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs, for the fourth quarter was $111.7 million, an increase of 5% over the previous quarter, and $408.6 million for the year ended December 31, 2009, a 40% increase over 2008.

Capital expenditures in the fourth quarter were $101.7 million, of which $20.7 million was attributed to ongoing capital expenditures and $81.0 million was attributed to expansion capital expenditures. Capital expenditures for the year ended December 31, 2009 were $369.5 million, of which $64.4 million was attributed to ongoing capital expenditures and $305.1 million was attributed to expansion capital expenditures.

The Company generated cash from operating activities of $82.5 million for the fourth quarter as compared to $107.5 million in the previous quarter. Cash generated from operating activities for the year ended December 31, 2009 was $355.5 million as compared to $267.6 million in the previous year. Cash used in investing activities was $15.7 million in the fourth quarter as compared to $260.5 million in the previous quarter. Cash used in investing activities for the year was $558.2 million as compared to $478.0 million in the previous year.

As of December 31, 2009, the Company’s cash, cash equivalents and investments were $604.4 million, as compared to $307.9 million as of December 31, 2008.

For the first quarter of 2010, the Company expects revenues to be in the range of $245.0 to $247.0 million, including approximately $5.0 million of currency headwinds compared to our prior expectations. Cash gross margins are expected to be approximately 64%. Cash selling, general and administrative expenses are expected to be approximately $46.0 million. Adjusted EBITDA is expected to be between $110.0 and $112.0 million. Capital expenditures are expected to be between $110.0 to $130.0 million, comprised of approximately $20.0 million of ongoing capital expenditures and $90.0 to $110.0 million of expansion capital expenditures.

For the full year of 2010, total revenues are expected to be in the range of $1,050.0 to $1,075.0 million, including approximately $22.0 million of currency headwinds compared to our prior expectations. Total year cash gross margins are expected to be approximately 64%. Cash selling, general and administrative expenses are expected to be in the range of $200.0 to $220.0 million. Adjusted EBITDA for the year is expected to be between $460.0 and $480.0 million. Capital expenditures for 2010 are expected to be in the range of $400.0 to $500.0 million, comprised of approximately $100.0 million of ongoing capital expenditures related to customer installation expenditures, new product innovation solutions, internal ERP system solutions and increased investment in IBX reliability. Expansion capital expenditures are expected to range between $300.0 to $400.0 million.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, February 10, 2010, at 5:30 p.m. ET (2:30 p.m. PT). To hear the conference call live, please dial 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, February 10, 2010 at 7:30 p.m. (ET) through March 10, 2010 by dialing 203-369-1034 and reference the passcode (2010). In addition, the Webcast will be available on the company's Web site at www.equinix.com. No password is required for the webcast.

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 49 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 other items that it believes are not good indicators of the Company's current or future operating performance. These other items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charge liabilities, 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 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 expenses 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 twelve months ended December 31, 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									Twelve Months Ended
			December 31,			September 30,			December 31,			December 31,			December 31,
			2009			2009			2008			2009			2008

Recurring revenues			$	231,465		$	216,517		$	181,419		$	841,849		$	667,163
Non-recurring revenues				11,087			11,041			9,264			40,660			37,517
	Revenues			242,552			227,558			190,683			882,509			704,680

Cost of revenues				127,074			126,007			108,346			483,420			414,799
		Gross profit		115,478			101,551			82,337			399,089			289,881

Operating expenses:
	Sales and marketing			17,269			15,543			20,263			63,584			66,913
	General and administrative			43,647			39,071			35,214			155,324			146,564
	Restructuring charges			-			-			2,343			(6,053	)		3,142
	Acquisition costs			3,776			1,379			-			5,155			-
		Total operating expenses		64,692			55,993			57,820			218,010			216,619

Income from operations				50,786			45,558			24,517			181,079			73,262

Interest and other income (expense):
	Interest income			435			353			1,120			2,384			8,940
	Interest expense			(22,613	)		(22,256	)		(16,498	)		(74,232	)		(61,677	)
	Other-than-temporary impairment loss on investments			97			-			-			(2,590	)		(1,527	)
	Other income (expense)			(1,288	)		2,484			705			2,387			1,307
		Total interest and other, net		(23,369	)		(19,419	)		(14,673	)		(72,051	)		(52,957	)

Net income before income taxes				27,417			26,139			9,844			109,028			20,305

	Income tax benefit (expense)			(9,695	)		(7,327	)		88,019			(39,597	)		87,619

Net income			$	17,722		$	18,812		$	97,863		$	69,431		$	107,924

Net income per share:

	Basic net income per share		$	0.45		$	0.49		$	2.61		$	1.80		$	2.91

	Diluted net income per share		$	0.44		$	0.47		$	2.33		$	1.75		$	2.79

	Shares used in computing basic net income per share			39,136			38,787			37,549			38,488			37,120

	Shares used in computing diluted net income per share			40,498			39,887			43,790			39,676			41,582

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


					Three Months Ended									Twelve Months Ended
					December 31,			September 30,			December 31,			December 31,			December 31,
					2009			2009			2008			2009			2008

Recurring revenues					$	231,465		$	216,517		$	181,419		$	841,849		$	667,163
Non-recurring revenues						11,087			11,041			9,264			40,660			37,517
		Revenues (1)				242,552			227,558			190,683			882,509			704,680

Cash cost of revenues (2)						85,533			81,931			66,230			314,580			264,680
				Cash gross profit (3)		157,019			145,627			124,453			567,929			440,000

Cash operating expenses (4):
		Cash sales and marketing expenses(5)				13,238			11,453			15,747			47,875			50,217
		Cash general and administrative expenses (6)				32,121			28,138			24,606			111,446			97,307
				Total cash operating expenses (7)		45,359			39,591			40,353			159,321			147,524

Adjusted EBITDA (8)					$	111,660		$	106,036		$	84,100		$	408,608		$	292,476

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

Adjusted EBITDA margins (10)						46	%		47	%		44	%		46	%		42	%

Adjusted EBITDA flow-through rate (11)						38	%		45	%		103	%		65	%		48	%


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

		United States Revenues:
		Colocation			$	115,695		$	108,018		$	93,970		$	424,083		$	339,472
		Interconnection				23,048			22,494			21,809			89,014			81,690
		Managed infrastructure				541			529			562			2,161			2,164
		Rental				120			123			116			522			614
			Recurring revenues			139,404			131,164			116,457			515,780			423,940
		Non-recurring revenues				5,111			5,170			5,044			19,709			18,863
			Revenues			144,515			136,334			121,501			535,489			442,803

		Asia-Pacific Revenues:
		Colocation				25,074			22,691			16,751			88,100			56,392
		Interconnection				3,263			2,831			2,096			10,906			7,176
		Managed infrastructure				3,788			3,515			3,367			14,428			13,986
			Recurring revenues			32,125			29,037			22,214			113,434			77,554
		Non-recurring revenues				1,438			1,381			1,805			5,450			6,821
			Revenues			33,563			30,418			24,019			118,884			84,375

		Europe Revenues:
		Colocation				54,599			51,258			37,488			192,677			147,079
		Interconnection				2,017			1,910			1,356			6,974			4,873
		Managed infrastructure				3,147			2,976			3,804			12,415			13,303
		Rental				173			172			100			569			414
			Recurring revenues			59,936			56,316			42,748			212,635			165,669
		Non-recurring revenues				4,538			4,490			2,415			15,501			11,833
			Revenues			64,474			60,806			45,163			228,136			177,502

		Worldwide Revenues:
		Colocation				195,368			181,967			148,209			704,860			542,943
		Interconnection				28,328			27,235			25,261			106,894			93,739
		Managed infrastructure				7,476			7,020			7,733			29,004			29,453
		Rental				293			295			216			1,091			1,028
			Recurring revenues			231,465			216,517			181,419			841,849			667,163
		Non-recurring revenues				11,087			11,041			9,264			40,660			37,517
			Revenues		$	242,552		$	227,558		$	190,683		$	882,509		$	704,680

(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			$	127,074		$	126,007		$	108,346		$	483,420		$	414,799
		Depreciation, amortization and accretion expense				(40,072	)		(42,189	)		(40,910	)		(162,932	)		(145,478	)
		Stock-based compensation expense				(1,469	)		(1,887	)		(1,206	)		(5,908	)		(4,641	)
			Cash cost of revenues		$	85,533		$	81,931		$	66,230		$	314,580		$	264,680

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

		U.S. cash cost of revenues			$	42,713		$	43,123		$	37,256		$	164,491		$	141,355
		Asia-Pacific cash cost of revenues				12,678			10,697			9,517			43,637			35,006
		Europe cash cost of revenues				30,142			28,111			19,457			106,452			88,319
			Cash cost of revenues		$	85,533		$	81,931		$	66,230		$	314,580		$	264,680

(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			$	17,269		$	15,543		$	20,263		$	63,584		$	66,913
		Depreciation and amortization expense				(1,401	)		(1,409	)		(1,300	)		(5,380	)		(6,059	)
		Stock-based compensation expense				(2,630	)		(2,681	)		(3,216	)		(10,329	)		(10,637	)
			Cash sales and marketing expenses		$	13,238		$	11,453		$	15,747		$	47,875		$	50,217

(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			$	43,647		$	39,071		$	35,214		$	155,324		$	146,564
		Depreciation and amortization expense				(1,599	)		(1,468	)		(1,896	)		(7,059	)		(9,450	)
		Stock-based compensation expense				(9,927	)		(9,465	)		(8,712	)		(36,819	)		(39,807	)
			Cash general and administrative expenses		$	32,121		$	28,138		$	24,606		$	111,446		$	97,307

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

		Cash sales and marketing expenses			$	13,238		$	11,453		$	15,747		$	47,875		$	50,217
		Cash general and administrative expenses				32,121			28,138			24,606			111,446			97,307
			Cash SG&A		$	45,359		$	39,591		$	40,353		$	159,321		$	147,524

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

		U.S. cash SG&A			$	26,308		$	25,187		$	24,069		$	98,503		$	89,697
		Asia-Pacific cash SG&A				6,278			5,023			5,409			20,987			19,767
		Europe cash SG&A				12,773			9,381			10,875			39,831			38,060
			Cash SG&A		$	45,359		$	39,591		$	40,353		$	159,321		$	147,524

(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			$	50,786		$	45,558		$	24,517		$	181,079		$	73,262
		Depreciation, amortization and accretion expense				43,072			45,066			44,106			175,371			160,987
		Stock-based compensation expense				14,026			14,033			13,134			53,056			55,085
		Restructuring charges				-			-			2,343			(6,053	)		3,142
		Acquisition costs				3,776			1,379			-			5,155			-
			Adjusted EBITDA		$	111,660		$	106,036		$	84,100		$	408,608		$	292,476

		The geographic split of our adjusted EBITDA is presented below:

		U.S. income from operations			$	33,908		$	31,571		$	21,458		$	128,168		$	66,202
		U.S. depreciation, amortization and accretion expense				27,056			25,838			26,208			106,207			101,414
		U.S. stock-based compensation expense				10,759			10,295			10,167			40,082			40,993
		U.S. restructuring charges				-			-			2,343			(6,053	)		3,142
		U.S. acquisition costs				3,771			320			-			4,091			-
			U.S. adjusted EBITDA			75,494			68,024			60,176			272,495			211,751

		Asia-Pacific income from operations				6,084			6,892			1,686			21,709			5,618
		Asia-Pacific depreciation, amortization and accretion expense				6,723			5,612			5,873			25,420			18,365
		Asia-Pacific stock-based compensation expense				1,800			2,194			1,534			7,131			5,619
			Asia-Pacific adjusted EBITDA			14,607			14,698			9,093			54,260			29,602

		Europe income from operations				10,794			7,095			1,373			31,202			1,442
		Europe depreciation, amortization and accretion expense				9,293			13,616			12,025			43,744			41,208
		Europe stock-based compensation expense				1,467			1,544			1,433			5,843			8,473
		Europe acquisition costs				5			1,059			-			1,064			-
			Europe adjusted EBITDA			21,559			23,314			14,831			81,853			51,123

				Adjusted EBITDA	$	111,660		$	106,036		$	84,100		$	408,608		$	292,476

(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				70	%		68	%		69	%		69	%		68	%

		Asia-Pacific cash gross margins				62	%		65	%		60	%		63	%		59	%

		Europe cash gross margins				53	%		54	%		57	%		53	%		50	%

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

		U.S. adjusted EBITDA margins				52	%		50	%		50	%		51	%		48	%

		Asia-Pacific adjusted EBITDA margins				44	%		48	%		38	%		46	%		35	%

		Europe adjusted EBITDA margins				33	%		38	%		33	%		36	%		29	%

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

		Adjusted EBITDA - current period			$	111,660		$	106,036		$	84,100		$	408,608		$	292,476
		Less adjusted EBITDA - prior period				(106,036	)		(99,534	)		(76,973	)		(292,476	)		(155,390	)
			Adjusted EBITDA growth		$	5,624		$	6,502		$	7,127		$	116,132		$	137,086

		Revenues - current period			$	242,552		$	227,558		$	190,683		$	882,509		$	704,680
		Less revenues - prior period				(227,558	)		(213,168	)		(183,735	)		(704,680	)		(419,442	)
			Revenue growth		$	14,994		$	14,390		$	6,948		$	177,829		$	285,238

		Adjusted EBITDA flow-through rate				38	%		45	%		103	%		65	%		48	%

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

Assets			December 31,			December 31,
			2009			2008

Cash and cash equivalents			$	346,056		$	220,207
Short-term investments				248,508			42,112
Accounts receivable, net				64,767			66,029
Deferred tax assets				46,822			35,936
Other current assets				21,734			15,227
	Total current assets			727,887			379,511
Long-term investments				9,803			45,626
Property, plant and equipment, net				1,808,115			1,492,830
Goodwill				381,050			342,829
Intangible assets, net				51,015			50,918
Deferred tax assets				5,171			65,228
Other assets				55,109			57,794
	Total assets		$	3,038,150		$	2,434,736

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	99,053		$	74,317
Accrued property and equipment				109,876			89,518
Current portion of capital lease and other financing obligations				6,452			4,499
Current portion of mortgage and loans payable				58,912			52,054
Current portion of convertible debt				-			19,150
Other current liabilities				41,166			50,455
	Total current liabilities			315,459			289,993
Capital lease and other financing obligations, less current portion				154,577			133,031
Mortgage and loans payable, less current portion				371,322			386,446
Convertible debt, less current portion				893,706			608,510
Other liabilities				120,603			100,095
	Total liabilities			1,855,667			1,518,075

Common stock				39			38
Additional paid-in capital				1,665,662			1,524,834
Accumulated other comprehensive loss				(97,238	)		(152,800	)
Accumulated deficit				(385,980	)		(455,411	)
	Total stockholders' equity			1,182,483			916,661

	Total liabilities and stockholders' equity		$	3,038,150		$	2,434,736



Ending headcount by geographic region is as follows:

	U.S. headcount			718			646
	Asia-pacific headcount			236			190
	Europe headcount			347			279
		Total headcount		1,301			1,115

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


						Three Months Ended									Twelve Months Ended
						December 31,			September 30,			December 31,			December 31,			December 31,
						2009			2009			2008			2009			2008

Cash flows from operating activities:
		Net income				$	17,722		$	18,812		$	97,863		$	69,431		$	107,924
		Adjustments to reconcile net income to
		net cash provided by operating activities:
			Depreciation, amortization and accretion				43,072			45,066			44,106			175,371			160,987
			Stock-based compensation				14,026			14,033			13,134			53,056			55,085
			Debt issuance costs and debt discount				6,581			6,496			2,888			18,791			11,523
			Restructuring charges				-			-			2,343			(6,053	)		3,142
			Other reconciling items				184			(426	)		2,201			3,453			2,292
			Changes in operating assets and liabilities:
				Accounts receivable			2,300			1,003			(5,369	)		2,277			(9,152	)
				Deferred tax assets, net			7,231			3,811			(94,229	)		27,981			(94,229	)
				Accounts payable and accrued expenses			(4,876	)		14,673			4,922			22,762			9,937
				Other assets and liabilities			(3,730	)		4,071			8,436			(11,577	)		20,049
					Net cash provided by operating activities		82,510			107,539			76,295			355,492			267,558
Cash flows from investing activities:
		Purchases, sales and maturities of investments, net					85,924			(146,045	)		81,583			(172,658	)		5,436
		Purchase of Upminster, less cash acquired					-			(28,176	)		-			(28,176	)		-
		Purchase of Virtu, less cash acquired					-			-			-			-			(23,241	)
		Purchases of other property and equipment					(101,740	)		(88,195	)		(125,471	)		(369,542	)		(447,032	)
		Other investing activities					132			1,867			698			12,198			(13,203	)
					Net cash used in investing activities		(15,684	)		(260,549	)		(43,190	)		(558,178	)		(478,040	)
Cash flows from financing activities:
		Proceeds from employee equity awards					13,956			14,096			143			37,006			26,230
		Proceeds from convertible debt					-			-			-			373,750			-
		Proceeds from mortgage and loans payable					795			27,935			40,272			29,474			142,373
		Repayment of capital lease and other financing obligations					(1,514	)		(1,427	)		(958	)		(5,279	)		(3,832	)
		Repayment of mortgage and loans payable					(16,593	)		(11,003	)		(7,840	)		(51,118	)		(19,296	)
		Capped call costs					-			-			-			(49,664	)		-
		Equity issuance costs					-			(9	)		-			(2,795	)		-
		Debt issuance costs					(10	)		(788	)		(40	)		(8,220	)		(948	)
		Other financing activities					444			-			579			444			579
					Net cash provided by (used in) financing activities		(2,922	)		28,804			32,156			323,598			145,106
Effect of foreign currency exchange rates on cash and cash equivalents							(995	)		2,136			(5,739	)		4,937			(5,050	)
Net increase (decrease) in cash and cash equivalents							62,909			(122,070	)		59,522			125,849			(70,426	)
Cash and cash equivalents at beginning of period							283,147			405,217			160,685			220,207			290,633
Cash and cash equivalents at end of period						$	346,056		$	283,147		$	220,207		$	346,056		$	220,207


Free cash flow (1)						$	(19,098	)	$	(6,965	)	$	(48,478	)	$	(30,028	)	$	(215,918	)

Adjusted free cash flow (2)						$	(19,098	)	$	21,211		$	(48,478	)	$	(1,852	)	$	(192,677	)


(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				$	82,510		$	107,539		$	76,295		$	355,492		$	267,558
		Net cash used in investing activities as presented above					(15,684	)		(260,549	)		(43,190	)		(558,178	)		(478,040	)
		Purchases, sales and maturities of investments, net					(85,924	)		146,045			(81,583	)		172,658			(5,436	)
			Free cash flow (negative free cash flow)			$	(19,098	)	$	(6,965	)	$	(48,478	)	$	(30,028	)	$	(215,918	)

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

		Free cash flow (as defined above)				$	(19,098	)	$	(6,965	)	$	(48,478	)	$	(30,028	)	$	(215,918	)
		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)			$	(19,098	)	$	21,211		$	(48,478	)	$	(1,852	)	$	(192,677	)

CONTACT:
Equinix Media Contacts:
Equinix, Inc.
Joan Powell, 650-513-7098
joanpowell@equinix.com
or
LEWIS PR
Scott Blevins, 415-992–4400
equinixlewisus@lewispr.com
or
Equinix Investor Relations Contact:
Equinix, Inc.
Jason Starr, 650-513-7402
jstarr@equinix.com

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

		December 31,		December 31,
		2009		2008

Capital lease and other financing obligations		$	161,029	$	137,530

European financing			130,058		130,981
Chicago IBX financing			109,991		109,991
Mortgage payable			91,756		94,362
Asia-Pacific financing			64,559		87,009
Singapore financing			24,559		-
Netherlands financing			9,311		6,485
Other note payable			-		9,672
	Total mortgage and loans payable		430,234		438,500

Convertible debt, net of debt discount			893,706		627,660
Plus debt discount			126,030		37,476
	Total convertible debt principal		1,019,736		665,136

Total debt outstanding		$	1,610,999	$	1,241,166