FOSTER CITY, Calif.--(BUSINESS WIRE)--July 28, 2010--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended June 30, 2010. This quarter includes the results from the acquisition of Switch & Data Facilities Company, Inc. from May 1, 2010, which is referred to as the Switch and Data acquisition.

Revenues were $296.1 million for the second quarter, a 19% increase over the previous quarter and a 39% increase over the same quarter last year. This result included $37.6 million in revenues from Switch and Data for the quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $282.1 million for the second quarter, a 19% increase over the previous quarter and a 39% increase over the same quarter last year. Non-recurring revenues were $14.0 million in the quarter.

“Equinix saw strong Q2 financial results in all three of its operating regions and is on target to meet 2010 objectives,” said Steve Smith, CEO and President of Equinix. “The integration of Switch and Data is ahead of schedule, and our expansions are providing us much needed capacity in many of our key markets, which positions us well for further growth.”

Cost of revenues were $162.6 million for the second quarter, a 22% increase from the previous quarter and a 37% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $58.7 million, were $103.9 million for the second quarter, a 22% increase over the previous quarter and a 38% 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 65%, down from 66% for the previous quarter and unchanged from the same quarter last year.

Selling, general and administrative expenses were $83.1 million for the second quarter, a 33% increase over the previous quarter and a 54% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $23.1 million, were $60.0 million for the second quarter, a 30% increase over the previous quarter and a 56% increase over the same quarter last year.

Restructuring charges were $4.4 million for the second quarter, which were primarily related to the termination benefits attributed to certain Switch and Data employees. Acquisition costs were $5.8 million for the second quarter. Our acquisition costs for the second quarter were primarily related to professional fees from the Switch and Data acquisition. Integration costs were $1.2 million for the quarter and primarily related to consulting and IT related expenditures to integrate Switch and Data.

Net loss for the second quarter was $2.3 million. This represents a basic and diluted net loss per share of $0.05 based on a weighted average share count of 43.5 million for the second quarter of 2010.

Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs for the second quarter, was $132.2 million, an increase of 13% over the previous quarter and a 33% increase over the same quarter last year.

Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the second quarter, were $148.7 million, of which $121.8 million was attributed to expansion capital expenditures and $26.9 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $56.9 million for the second quarter as compared to $99.8 million in the previous quarter and $78.7 million the same quarter last year. Cash used in investing activities was $327.4 million in the second quarter as compared to $31.6 million in the previous quarter and $204.1 million for the same quarter last year. Cash used in financing activities was $252.2 million primarily related to the repayment of certain mortgage and loans payable.

As of June 30, 2010, the Company’s cash, cash equivalents and investments were $722.0 million, as compared to $1,185.1 million as of March 31, 2010, a net change of $463.1 million, including cash used to acquire Switch and Data and the repayment of certain mortgage and loans payable.

For the third quarter of 2010, the Company expects revenues to be in the range of $335.0 to $338.0 million. Cash gross margins are expected to range between 63% and 64%. Cash selling, general and administrative expenses are expected to approximate $75.0 million. Adjusted EBITDA is expected to be between $136.0 and $139.0 million. Capital expenditures are expected to be between $185.0 to $210.0 million, comprised of approximately $45.0 million of ongoing capital expenditures and $140.0 to $165.0 million of expansion capital expenditures.

For the full year of 2010, total revenues are expected to be in the range of $1,225.0 to $1,235.0 million. Total year cash gross margins are expected to be approximately 64%. Cash selling, general and administrative expenses are expected to approximate $250.0 million. Adjusted EBITDA for the year is expected to be between $535.0 and $540.0 million. Capital expenditures for 2010 are expected to be in the range of $530.0 to $580.0 million, comprised of approximately $110.0 million of ongoing capital expenditures and $420.0 to $470.0 million for expansion capital expenditures.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, July 28, 2010, at 5:30 p.m. ET (2:30 p.m. PT). A presentation to accompany the call will be available on the Company’s website at www.equinix.com/investors for thirty days. 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 also be available at www.equinix.com/investors.

A replay of the call will be available beginning on Wednesday, July 28, 2010 at 7:30 p.m. (ET) through August 26, 2010 by dialing 203-369-0872 and referencing the passcode (2010). In addition, the webcast will be available on the company's web site at www.equinix.com/investors. 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 more than 595 network service providers rely upon Equinix’s insight and expertise to protect and connect their most valued information assets. Equinix operates 89 International Business Exchange™ (IBX®) and partner data centers across 35 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 items that it believes are not good indicators of the Company's current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, 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 competitors.

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 10 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 charges, 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 equity 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 or severance charges related to the Switch and Data acquisition. 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 non-core transactions; however, these types of costs will or may occur in future periods.

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, stock-based compensation, 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 periods 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									Six Months Ended
			June 30,			March 31,			June 30,			June 30,			June 30,
			2010			2010			2009			2010			2009

Recurring revenues			$	282,117		$	237,236		$	203,545		$	519,353		$	393,867
Non-recurring revenues				13,977			11,413			9,623			25,390			18,532
	Revenues			296,094			248,649			213,168			544,743			412,399

Cost of revenues				162,582			133,050			118,534			295,632			230,339
		Gross profit		133,512			115,599			94,634			249,111			182,060

Operating expenses:
	Sales and marketing			28,913			19,468			16,369			48,381			30,772
	General and administrative			54,166			43,155			37,456			97,321			72,606
	Restructuring charges			4,357			-			(220	)		4,357			(6,053	)
	Acquisition costs			5,849			4,994			-			10,843			-
		Total operating expenses		93,285			67,617			53,605			160,902			97,325

Income from operations				40,227			47,982			41,029			88,209			84,735

Interest and other income (expense):
	Interest income			491			506			680			997			1,596
	Interest expense			(37,615	)		(25,675	)		(15,912	)		(63,290	)		(29,363	)
	Other-than-temporary impairment recovery (loss) on investments			-			3,420			-			3,420			(2,687	)
	Loss on debt extinguishment and interest rate swaps, net			(1,454	)		(3,377	)		-			(4,831	)		-
	Other income (expense)			(1,481	)		20			2,610			(1,461	)		1,191
		Total interest and other, net		(40,059	)		(25,106	)		(12,622	)		(65,165	)		(29,263	)

Income before income taxes				168			22,876			28,407			23,044			55,472

	Income tax expense			(2,442	)		(8,677	)		(10,967	)		(11,119	)		(22,575	)

Net income (loss)			$	(2,274	)	$	14,199		$	17,440		$	11,925		$	32,897

Net income (loss) per share:

	Basic net income (loss) per share		$	(0.05	)	$	0.36		$	0.46		$	0.29		$	0.87

	Diluted net income (loss) per share		$	(0.05	)	$	0.35		$	0.44		$	0.28		$	0.84

	Shares used in computing basic net income (loss) per share			43,507			39,562			38,152			41,546			38,007

	Shares used in computing diluted net income (loss) per share			43,507			40,785			39,318			42,721			39,008


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


					Three Months Ended									Six Months Ended
					June 30,			March 31,			June 30,			June 30,			June 30,
					2010			2010			2009			2010			2009

Recurring revenues					$	282,117		$	237,236		$	203,545		$	519,353		$	393,867
Non-recurring revenues						13,977			11,413			9,623			25,390			18,532
		Revenues (1)				296,094			248,649			213,168			544,743			412,399

Cash cost of revenues (2)						103,892			85,084			75,177			188,976			147,116
				Cash gross profit (3)		192,202			163,565			137,991			355,767			265,283

Cash operating expenses (4):
		Cash sales and marketing expenses (5)				22,158			15,185			12,204			37,343			23,184
		Cash general and administrative expenses (6)				37,889			31,108			26,253			68,997			51,187
				Total cash operating expenses (7)		60,047			46,293			38,457			106,340			74,371

Adjusted EBITDA (8)					$	132,155		$	117,272		$	99,534		$	249,427		$	190,912

Cash gross margins (9)						65	%		66	%		65	%		65	%		64	%

Adjusted EBITDA margins (10)						45	%		47	%		47	%		46	%		46	%

Adjusted EBITDA flow-through rate (11)						31	%		92	%		59	%		43	%		79	%


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

		North America Revenues:

		Colocation			$	148,569		$	118,932		$	102,455		$	267,501		$	200,370
		Interconnection				35,072			23,764			21,956			58,836			43,472
		Managed infrastructure				746			539			522			1,285			1,091
		Rental				407			182			118			589			279
			Recurring revenues			184,794			143,417			125,051			328,211			245,212
		Non-recurring revenues				6,852			5,139			4,695			11,991			9,428
			Revenues			191,646			148,556			129,746			340,202			254,640

		Asia-Pacific Revenues:

		Colocation				28,853			26,985			20,880			55,838			40,335
		Interconnection				3,860			3,529			2,516			7,389			4,812
		Managed infrastructure				3,946			3,860			3,590			7,806			7,125
			Recurring revenues			36,659			34,374			26,986			71,033			52,272
		Non-recurring revenues				1,705			1,555			1,380			3,260			2,631
			Revenues			38,364			35,929			28,366			74,293			54,903

		Europe Revenues:

		Colocation				55,898			54,442			46,706			110,340			86,820
		Interconnection				2,010			1,939			1,662			3,949			3,047
		Managed infrastructure				2,603			2,901			3,019			5,504			6,292
		Rental				153			163			121			316			224
			Recurring revenues			60,664			59,445			51,508			120,109			96,383
		Non-recurring revenues				5,420			4,719			3,548			10,139			6,473
			Revenues			66,084			64,164			55,056			130,248			102,856

		Worldwide Revenues:

		Colocation				233,320			200,359			170,041			433,679			327,525
		Interconnection				40,942			29,232			26,134			70,174			51,331
		Managed infrastructure				7,295			7,300			7,131			14,595			14,508
		Rental				560			345			239			905			503
			Recurring revenues			282,117			237,236			203,545			519,353			393,867
		Non-recurring revenues				13,977			11,413			9,623			25,390			18,532
			Revenues		$	296,094		$	248,649		$	213,168		$	544,743		$	412,399

(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			$	162,582		$	133,050		$	118,534		$	295,632		$	230,339
		Depreciation, amortization and accretion expense				(56,946	)		(46,372	)		(41,899	)		(103,318	)		(80,671	)
		Stock-based compensation expense				(1,744	)		(1,594	)		(1,458	)		(3,338	)		(2,552	)
			Cash cost of revenues		$	103,892		$	85,084		$	75,177		$	188,976		$	147,116

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

		North America cash cost of revenues			$	61,220		$	44,148		$	40,054		$	105,368		$	78,655
		Asia-Pacific cash cost of revenues				13,612			12,400			10,451			26,012			20,262
		Europe cash cost of revenues				29,060			28,536			24,672			57,596			48,199
			Cash cost of revenues		$	103,892		$	85,084		$	75,177		$	188,976		$	147,116

(3	)	We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4	)	We define cash operating expenses as operating expenses less depreciation, amortization, stock-based compensation, restructuring charges and acquisition costs. 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			$	28,913		$	19,468		$	16,369		$	48,381		$	30,772
		Depreciation and amortization expense				(2,997	)		(1,352	)		(1,327	)		(4,349	)		(2,570	)
		Stock-based compensation expense				(3,758	)		(2,931	)		(2,838	)		(6,689	)		(5,018	)
			Cash sales and marketing expenses		$	22,158		$	15,185		$	12,204		$	37,343		$	23,184

(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			$	54,166		$	43,155		$	37,456		$	97,321		$	72,606
		Depreciation and amortization expense				(3,683	)		(1,598	)		(2,040	)		(5,281	)		(3,992	)
		Stock-based compensation expense				(12,594	)		(10,449	)		(9,163	)		(23,043	)		(17,427	)
			Cash general and administrative expenses		$	37,889		$	31,108		$	26,253		$	68,997		$	51,187

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

		Cash sales and marketing expenses			$	22,158		$	15,185		$	12,204		$	37,343		$	23,184
		Cash general and administrative expenses				37,889			31,108			26,253			68,997			51,187
			Cash SG&A		$	60,047		$	46,293		$	38,457		$	106,340		$	74,371

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

		North America cash SG&A			$	40,960		$	30,626		$	23,678		$	71,586		$	47,008
		Asia-Pacific cash SG&A				6,003			4,994			4,996			10,997			9,686
		Europe cash SG&A				13,084			10,673			9,783			23,757			17,677
			Cash SG&A		$	60,047		$	46,293		$	38,457		$	106,340		$	74,371

(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			$	40,227		$	47,982		$	41,029		$	88,209		$	84,735
		Depreciation, amortization and accretion expense				63,626			49,322			45,266			112,948			87,233
		Stock-based compensation expense				18,096			14,974			13,459			33,070			24,997
		Restructuring charges				4,357			-			(220	)		4,357			(6,053	)
		Acquisition costs				5,849			4,994			-			10,843			-
			Adjusted EBITDA		$	132,155		$	117,272		$	99,534		$	249,427		$	190,912

		The geographic split of our adjusted EBITDA is presented below:

		North America income from operations			$	22,529		$	29,601		$	28,748		$	52,130		$	62,689
		North America depreciation, amortization and accretion expense				43,081			28,174			27,274			71,255			53,313
		North America stock-based compensation expense				13,650			11,013			10,212			24,663			19,028
		North America restructuring charges				4,357			-			(220	)		4,357			(6,053	)
		North America acquisition costs				5,849			4,994			-			10,843			-
			North America adjusted EBITDA			89,466			73,782			66,014			163,248			128,977

		Asia-Pacific income from operations				10,026			10,060			4,394			20,086			8,733
		Asia-Pacific depreciation, amortization and accretion expense				6,808			6,664			6,758			13,472			13,085
		Asia-Pacific stock-based compensation expense				1,915			1,811			1,767			3,726			3,137
			Asia-Pacific adjusted EBITDA			18,749			18,535			12,919			37,284			24,955

		Europe income from operations				7,672			8,321			7,887			15,993			13,313
		Europe depreciation, amortization and accretion expense				13,737			14,484			11,234			28,221			20,835
		Europe stock-based compensation expense				2,531			2,150			1,480			4,681			2,832
			Europe adjusted EBITDA			23,940			24,955			20,601			48,895			36,980

				Adjusted EBITDA	$	132,155		$	117,272		$	99,534		$	249,427		$	190,912

(9	)	We define cash gross margins as cash gross profit divided by revenues.

		Our cash gross margins by geographic region is presented below:

		North America cash gross margins				68	%		70	%		69	%		69	%		69	%

		Asia-Pacific cash gross margins				65	%		65	%		63	%		65	%		63	%

		Europe cash gross margins				56	%		56	%		55	%		56	%		53	%

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

		North America adjusted EBITDA margins				47	%		50	%		51	%		48	%		51	%

		Asia-Pacific adjusted EBITDA margins				49	%		52	%		46	%		50	%		45	%

		Europe adjusted EBITDA margins				36	%		39	%		37	%		38	%		36	%

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

		Adjusted EBITDA - current period			$	132,155		$	117,272		$	99,534		$	249,427		$	190,912
		Less adjusted EBITDA - prior period				(117,272	)		(111,660	)		(91,378	)		(217,696	)		(161,073	)
			Adjusted EBITDA growth		$	14,883		$	5,612		$	8,156		$	31,731		$	29,839

		Revenues - current period			$	296,094		$	248,649		$	213,168		$	544,743		$	412,399
		Less revenues - prior period				(248,649	)		(242,552	)		(199,231	)		(470,110	)		(374,418	)
			Revenue growth		$	47,445		$	6,097		$	13,937		$	74,633		$	37,981

		Adjusted EBITDA flow-through rate				31	%		92	%		59	%		43	%		79	%


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


						Three Months Ended									Six Months Ended
						June 30,			March 31,			June 30,			June 30,			June 30,
						2010			2010			2009			2010			2009

Cash flows from operating activities:
		Net income (loss)				$	(2,274	)	$	14,199		$	17,440		$	11,925		$	32,897
		Adjustments to reconcile net income (loss) to net cash provided by operating activities:
			Depreciation, amortization and accretion				63,626			49,322			45,266			112,948			87,233
			Stock-based compensation				18,096			14,974			13,459			33,070			24,997
			Debt issuance costs and debt discount				6,689			5,554			3,277			12,243			5,714
			Loss on debt extinguishment and interest rate swaps				1,454			3,377			-			4,831			-
			Restructuring charges				4,357			-			(220	)		4,357			(6,053	)
			Other reconciling items				834			434			921			1,268			3,695
			Changes in operating assets and liabilities:
				Accounts receivable			(25,671	)		(6,086	)		(5,838	)		(31,757	)		(1,026	)
				Deferred tax assets, net			(733	)		5,002			8,068			4,269			16,939
				Accounts payable and accrued expenses			3,174			15,886			6,683			19,060			12,965
				Other assets and liabilities			(12,657	)		(2,850	)		(10,317	)		(15,507	)		(11,918	)
					Net cash provided by operating activities		56,895			99,812			78,739			156,707			165,443
Cash flows from investing activities:
		Purchases, sales and maturities of investments, net					(64,987	)		112,285			(136,157	)		47,298			(112,537	)
		Purchase of Switch and Data, less cash acquired					(113,289	)		-			-			(113,289	)		-
		Purchases of property and equipment					(148,694	)		(143,400	)		(70,766	)		(292,094	)		(179,607	)
		Other investing activities					(474	)		(442	)		2,863			(916	)		10,199
					Net cash used in investing activities		(327,444	)		(31,557	)		(204,060	)		(359,001	)		(281,945	)
Cash flows from financing activities:
		Proceeds from employee equity awards					11,270			10,883			4,892			22,153			8,954
		Proceeds from convertible debt					-			-			373,750			-			373,750
		Proceeds from mortgage and loans payable					98,958			-			-			98,958			744
		Proceeds from senior notes					-			750,000			-			750,000			-
		Repayment of capital lease and other financing obligations					(10,847	)		(1,554	)		(1,369	)		(12,401	)		(2,338	)
		Repayment of mortgage and loans payable					(343,688	)		(114,340	)		(16,312	)		(458,028	)		(23,522	)
		Capped call costs					-			-			(49,664	)		-			(49,664	)
		Debt issuance costs					(7,926	)		(15,193	)		(9,956	)		(23,119	)		(9,956	)
		Other financing activities					-			-			-			-			(252	)
					Net cash provided by (used in) financing activities		(252,233	)		629,796			301,341			377,563			297,716
Effect of foreign currency exchange rates on cash and cash equivalents							(5,178	)		(4,805	)		7,148			(9,983	)		3,796
Net increase (decrease) in cash and cash equivalents							(527,960	)		693,246			183,168			165,286			185,010
Cash and cash equivalents at beginning of period							1,039,302			346,056			222,049			346,056			220,207
Cash and cash equivalents at end of period						$	511,342		$	1,039,302		$	405,217		$	511,342		$	405,217


Free cash flow (1)						$	(205,562	)	$	(44,030	)	$	10,836		$	(249,592	)	$	(3,965	)

Adjusted free cash flow (2)						$	(92,273	)	$	(44,030	)	$	10,836		$	(136,303	)	$	(3,965	)


(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				$	56,895		$	99,812		$	78,739		$	156,707		$	165,443
		Net cash used in investing activities as presented above					(327,444	)		(31,557	)		(204,060	)		(359,001	)		(281,945	)
		Purchases, sales and maturities of investments, net					64,987			(112,285	)		136,157			(47,298	)		112,537
			Free cash flow (negative free cash flow)			$	(205,562	)	$	(44,030	)	$	10,836		$	(249,592	)	$	(3,965	)

(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)				$	(205,562	)	$	(44,030	)	$	10,836		$	(249,592	)	$	(3,965	)
		Less purchase of Switch and Data, less cash acquired					113,289			-			-			113,289			-
			Adjusted free cash flow (negative adjusted free cash flow)			$	(92,273	)	$	(44,030	)	$	10,836		$	(136,303	)	$	(3,965	)

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


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

Assets			June 30,			December 31,
			2010			2009

Cash and cash equivalents			$	511,342		$	346,056
Short-term investments				206,111			248,508
Accounts receivable, net				106,255			64,767
Other current assets				64,527			68,556
	Total current assets			888,235			727,887
Long-term investments				4,497			9,803
Property, plant and equipment, net				2,400,808			1,808,115
Goodwill				752,717			381,050
Intangible assets, net				169,913			51,015
Other assets				71,240			60,280
	Total assets		$	4,287,410		$	3,038,150

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	138,725		$	99,053
Accrued property and equipment				85,350			109,876
Current portion of capital lease and other financing obligations				7,995			6,452
Current portion of mortgage and loans payable				21,968			58,912
Other current liabilities				45,531			41,166
	Total current liabilities			299,569			315,459
Capital lease and other financing obligations, less current portion				207,305			154,577
Mortgage and loans payable, less current portion				167,351			371,322
Senior notes				750,000			-
Convertible debt				904,769			893,706
Other liabilities				208,245			120,603
	Total liabilities			2,537,239			1,855,667

Common stock				46			39
Additional paid-in capital				2,288,817			1,665,662
Accumulated other comprehensive loss				(164,637	)		(97,238	)
Accumulated deficit				(374,055	)		(385,980	)
	Total stockholders' equity			1,750,171			1,182,483

	Total liabilities and stockholders' equity		$	4,287,410		$	3,038,150



Ending headcount by geographic region is as follows:

	North America headcount			1,162			718
	Asia-pacific headcount			263			236
	Europe headcount			429			347
		Total headcount		1,854			1,301


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

		June 30,		December 31,
		2010		2009

Capital lease and other financing obligations		$	215,300	$	161,029

European financing			-		130,058
Chicago IBX financing			-		109,991
Mortgage payable			90,361		91,756
Asia-Pacific financing			-		64,559
Singapore financing			-		24,559
Netherlands financing			-		9,311
New Asia-Pacific financing			98,958		-
	Total mortgage and loans payable		189,319		430,234

Senior notes			750,000		-

Convertible debt, net of debt discount			904,769		893,706
Plus debt discount			114,967		126,030
	Total convertible debt principal		1,019,736		1,019,736

Total debt outstanding		$	2,174,355	$	1,610,999