Exhibit 99.1

Equinix Reports Fourth Quarter and Year End 2009 Results

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.

Company Metrics

Business Outlook

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.

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 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.

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 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.

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 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.
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
 

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