FOSTER CITY, Calif.--(BUSINESS WIRE)--October 26, 2010--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended September 30, 2010.

Revenues were $330.3 million for the third quarter, a 12% increase over the previous quarter and a 45% increase over the same quarter last year. This result included $57.5 million in revenues from Switch and Data for the quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $314.7 million for the third quarter, a 12% increase over the previous quarter and a 45% increase over the same quarter last year. Non-recurring revenues were $15.6 million in the quarter.

“Equinix continues to see solid demand for global data center services and our investments in expansion capacity have us well-positioned heading into 2011,” said Steve Smith, CEO and President of Equinix. “The fundamentals of our business are strong and we have a significant opportunity for growth in targeted ecosystems including network, electronic trading, cloud and mobility.”

Cost of revenues were $185.5 million for the third quarter, a 14% increase from the previous quarter and a 47% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $68.9 million, were $116.6 million for the third quarter, a 12% increase over the previous quarter and a 42% increase over the same quarter last year. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 65%, unchanged from the previous quarter and up from 64% for the same quarter last year.

Selling, general and administrative expenses were $89.8 million for the third quarter, an 8% increase over the previous quarter and a 65% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $22.5 million, were $67.3 million for the third quarter, a 12% increase over the previous quarter and a 70% increase over the same quarter last year.

Restructuring charges were $1.9 million for the third quarter, which were primarily related to revised sublease assumptions related to an excess space lease in the New York metro area the Company previously decided to abandon.

Net income for the third quarter was $11.2 million. This represents a basic and diluted net income per share of $0.24 based on a weighted average share count of 45.7 million and 46.7 million, respectively, for the third 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 third quarter, was $146.5 million, an increase of 11% over the previous quarter and a 38% 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 third quarter, were $143.9 million, of which $103.2 million was attributed to expansion capital expenditures and $40.7 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $113.3 million for the third quarter as compared to $56.9 million in the previous quarter and $107.5 million the same quarter last year. Cash used in investing activities was $259.5 million in the third quarter as compared to $327.5 million in the previous quarter and $260.5 million for the same quarter last year. Cash provided by financing activities was $18.1 million, which was primarily related to the proceeds from employee equity awards and draw down of certain loans payable.

As of September 30, 2010, the Company’s cash, cash equivalents and investments were $715.4 million, as compared to $722.0 million as of June 30, 2010.

For the full year of 2010, total revenues are expected to be in the range of $1,216.0 to $1,218.0 million. Total year cash gross margins are expected to be 65%. Cash selling, general and administrative expenses are expected to approximate $250.0 million. Adjusted EBITDA for the year is expected to be approximately $542.0 million. Capital expenditures for 2010 are expected to be in the range of $560.0 to $580.0 million, comprised of approximately $110.0 million of ongoing capital expenditures and $450.0 to $470.0 million for expansion capital expenditures.

For the full year of 2011, total revenues are expected to be greater than $1,500.0 million. Adjusted EBITDA for the year is expected to be greater than $675.0 million. Total capital expenditures for 2011 are expected to be approximately $400.0 million.

The Company will discuss its results and guidance on its quarterly conference call on Tuesday, October 26, 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 210-234-8004 (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 Tuesday, October 26, 2010 at 7:30 p.m. ET (4:30 p.m. PT) through November 26, 2010 by dialing 203-369-1262 and referencing the passcode (2010). In addition, the webcast will be available on the company's website at www.equinix.com/investors over the same time period. 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, cloud, content and financial companies, and more than 600 network service providers rely upon Equinix to protect and connect their most valued information assets. Equinix operates 90 International Business Exchange™ (IBX®) and partner data centers across 35 metro areas in North America, Europe and Asia-Pacific. Learn more at: www.equinix.com

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									Nine Months Ended
			September 30,			June 30,			September 30,			September 30,			September 30,
			2010			2010			2009			2010			2009

Recurring revenues			$	314,727		$	282,117		$	216,517		$	834,080		$	610,384
Non-recurring revenues				15,620			13,977			11,041			41,010			29,573
	Revenues			330,347			296,094			227,558			875,090			639,957

Cost of revenues				185,476			162,582			126,007			481,108			356,346
		Gross profit		144,871			133,512			101,551			393,982			283,611

Operating expenses:
	Sales and marketing			31,205			28,913			15,543			79,586			46,315
	General and administrative			58,640			54,166			39,071			155,961			111,677
	Restructuring charges			1,886			4,357			-			6,243			(6,053	)
	Acquisition costs			1,114			5,849			1,379			11,957			1,379
		Total operating expenses		92,845			93,285			55,993			253,747			153,318

Income from operations				52,026			40,227			45,558			140,235			130,293

Interest and other income (expense):
	Interest income			310			491			353			1,307			1,949
	Interest expense			(38,363	)		(37,615	)		(22,256	)		(101,653	)		(51,619	)
	Other-than-temporary impairment recovery (loss) on investments			206			-			-			3,626			(2,687	)
	Loss on debt extinguishment and interest rate swaps, net			-			(1,454	)		-			(4,831	)		-
	Other income (expense)			1,654			(1,481	)		2,484			193			3,675
		Total interest and other, net		(36,193	)		(40,059	)		(19,419	)		(101,358	)		(48,682	)

Income before income taxes				15,833			168			26,139			38,877			81,611

	Income tax expense			(4,637	)		(2,442	)		(7,327	)		(15,756	)		(29,902	)

Net income (loss)			$	11,196		$	(2,274	)	$	18,812		$	23,121		$	51,709

Net income (loss) per share:

	Basic net income (loss) per share		$	0.24		$	(0.05	)	$	0.49		$	0.54		$	1.35

	Diluted net income (loss) per share		$	0.24		$	(0.05	)	$	0.47		$	0.52		$	1.32

	Shares used in computing basic net income (loss) per share			45,745			43,507			38,787			42,961			38,270

	Shares used in computing diluted net income (loss) per share			46,735			43,507			39,887			44,082			39,305


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


					Three Months Ended									Nine Months Ended
					September 30,			June 30,			September 30,			September 30,			September 30,
					2010			2010			2009			2010			2009

Recurring revenues					$	314,727		$	282,117		$	216,517		$	834,080		$	610,384
Non-recurring revenues						15,620			13,977			11,041			41,010			29,573
		Revenues (1)				330,347			296,094			227,558			875,090			639,957

Cash cost of revenues (2)						116,602			103,892			81,931			305,578			229,047
				Cash gross profit (3)		213,745			192,202			145,627			569,512			410,910

Cash operating expenses (4):
		Cash sales and marketing expenses (5)				24,171			22,158			11,453			61,514			34,637
		Cash general and administrative expenses (6)				43,113			37,889			28,138			112,110			79,325
				Total cash operating expenses (7)		67,284			60,047			39,591			173,624			113,962

Adjusted EBITDA (8)					$	146,461		$	132,155		$	106,036		$	395,888		$	296,948

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

Adjusted EBITDA margins (10)						44	%		45	%		47	%		45	%		46	%

Adjusted EBITDA flow-through rate (11)						42	%		31	%		45	%		41	%		71	%


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

		North America Revenues:

		Colocation			$	164,653		$	148,569		$	108,018		$	432,154		$	308,388
		Interconnection				42,102			35,072			22,494			100,938			65,966
		Managed infrastructure				821			746			529			2,106			1,620
		Rental				520			407			123			1,109			402
			Recurring revenues			208,096			184,794			131,164			536,307			376,376
		Non-recurring revenues				7,229			6,852			5,170			19,220			14,598
			Revenues			215,325			191,646			136,334			555,527			390,974

		Asia-Pacific Revenues:

		Colocation				31,672			28,853			22,691			87,510			63,026
		Interconnection				4,430			3,860			2,831			11,819			7,643
		Managed infrastructure				4,250			3,946			3,515			12,056			10,640
			Recurring revenues			40,352			36,659			29,037			111,385			81,309
		Non-recurring revenues				1,876			1,705			1,381			5,136			4,012
			Revenues			42,228			38,364			30,418			116,521			85,321

		Europe Revenues:

		Colocation				60,970			55,898			51,258			171,310			138,078
		Interconnection				2,305			2,010			1,910			6,254			4,957
		Managed infrastructure				2,734			2,603			2,976			8,238			9,268
		Rental				270			153			172			586			396
			Recurring revenues			66,279			60,664			56,316			186,388			152,699
		Non-recurring revenues				6,515			5,420			4,490			16,654			10,963
			Revenues			72,794			66,084			60,806			203,042			163,662

		Worldwide Revenues:

		Colocation				257,295			233,320			181,967			690,974			509,492
		Interconnection				48,837			40,942			27,235			119,011			78,566
		Managed infrastructure				7,805			7,295			7,020			22,400			21,528
		Rental				790			560			295			1,695			798
			Recurring revenues			314,727			282,117			216,517			834,080			610,384
		Non-recurring revenues				15,620			13,977			11,041			41,010			29,573
			Revenues		$	330,347		$	296,094		$	227,558		$	875,090		$	639,957

(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			$	185,476		$	162,582		$	126,007		$	481,108		$	356,346
		Depreciation, amortization and accretion expense				(67,255	)		(56,946	)		(42,189	)		(170,573	)		(122,860	)
		Stock-based compensation expense				(1,619	)		(1,744	)		(1,887	)		(4,957	)		(4,439	)
			Cash cost of revenues		$	116,602		$	103,892		$	81,931		$	305,578		$	229,047

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

		North America cash cost of revenues			$	71,879		$	61,220		$	43,123		$	177,247		$	121,778
		Asia-Pacific cash cost of revenues				15,350			13,612			10,697			41,362			30,959
		Europe cash cost of revenues				29,373			29,060			28,111			86,969			76,310
			Cash cost of revenues		$	116,602		$	103,892		$	81,931		$	305,578		$	229,047

(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			$	31,205		$	28,913		$	15,543		$	79,586		$	46,315
		Depreciation and amortization expense				(3,407	)		(2,997	)		(1,409	)		(7,756	)		(3,979	)
		Stock-based compensation expense				(3,627	)		(3,758	)		(2,681	)		(10,316	)		(7,699	)
			Cash sales and marketing expenses		$	24,171		$	22,158		$	11,453		$	61,514		$	34,637

(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			$	58,640		$	54,166		$	39,071		$	155,961		$	111,677
		Depreciation and amortization expense				(3,823	)		(3,683	)		(1,468	)		(9,104	)		(5,460	)
		Stock-based compensation expense				(11,704	)		(12,594	)		(9,465	)		(34,747	)		(26,892	)
			Cash general and administrative expenses		$	43,113		$	37,889		$	28,138		$	112,110		$	79,325

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

		Cash sales and marketing expenses			$	24,171		$	22,158		$	11,453		$	61,514		$	34,637
		Cash general and administrative expenses				43,113			37,889			28,138			112,110			79,325
			Cash SG&A		$	67,284		$	60,047		$	39,591		$	173,624		$	113,962

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

		North America cash SG&A			$	45,499		$	40,960		$	25,187		$	117,085		$	72,195
		Asia-Pacific cash SG&A				7,420			6,003			5,023			18,417			14,709
		Europe cash SG&A				14,365			13,084			9,381			38,122			27,058
			Cash SG&A		$	67,284		$	60,047		$	39,591		$	173,624		$	113,962

(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			$	52,026		$	40,227		$	45,558		$	140,235		$	130,293
		Depreciation, amortization and accretion expense				74,485			63,626			45,066			187,433			132,299
		Stock-based compensation expense				16,950			18,096			14,033			50,020			39,030
		Restructuring charges				1,886			4,357			-			6,243			(6,053	)
		Acquisition costs				1,114			5,849			1,379			11,957			1,379
			Adjusted EBITDA		$	146,461		$	132,155		$	106,036		$	395,888		$	296,948

		The geographic split of our adjusted EBITDA is presented below:

		North America income from operations			$	31,921		$	22,529		$	31,571		$	84,051		$	94,260
		North America depreciation, amortization and accretion expense				51,108			43,081			25,838			122,363			79,151
		North America stock-based compensation expense				12,683			13,650			10,295			37,346			29,323
		North America restructuring charges				1,886			4,357			-			6,243			(6,053	)
		North America acquisition costs				349			5,849			320			11,192			320
			North America adjusted EBITDA			97,947			89,466			68,024			261,195			197,001

		Asia-Pacific income from operations				9,847			10,026			6,892			29,933			15,625
		Asia-Pacific depreciation, amortization and accretion expense				7,846			6,808			5,612			21,318			18,697
		Asia-Pacific stock-based compensation expense				1,765			1,915			2,194			5,491			5,331
			Asia-Pacific adjusted EBITDA			19,458			18,749			14,698			56,742			39,653

		Europe income from operations				10,258			7,672			7,095			26,251			20,408
		Europe depreciation, amortization and accretion expense				15,531			13,737			13,616			43,752			34,451
		Europe stock-based compensation expense				2,502			2,531			1,544			7,183			4,376
		Europe acquisition costs				765			-			1,059			765			1,059
			Europe adjusted EBITDA			29,056			23,940			23,314			77,951			60,294

				Adjusted EBITDA	$	146,461		$	132,155		$	106,036		$	395,888		$	296,948

(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				67	%		68	%		68	%		68	%		69	%

		Asia-Pacific cash gross margins				64	%		65	%		65	%		65	%		64	%

		Europe cash gross margins				60	%		56	%		54	%		57	%		53	%

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

		North America adjusted EBITDA margins				45	%		47	%		50	%		47	%		50	%

		Asia-Pacific adjusted EBITDA margins				46	%		49	%		48	%		49	%		46	%

		Europe adjusted EBITDA margins				40	%		36	%		38	%		38	%		37	%

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

		Adjusted EBITDA - current period			$	146,461		$	132,155		$	106,036		$	395,888		$	296,948
		Less adjusted EBITDA - prior period				(132,155	)		(117,272	)		(99,534	)		(317,230	)		(230,207	)
			Adjusted EBITDA growth		$	14,306		$	14,883		$	6,502		$	78,658		$	66,741

		Revenues - current period			$	330,347		$	296,094		$	227,558		$	875,090		$	639,957
		Less revenues - prior period				(296,094	)		(248,649	)		(213,168	)		(683,278	)		(546,462	)
			Revenue growth		$	34,253		$	47,445		$	14,390		$	191,812		$	93,495

		Adjusted EBITDA flow-through rate				42	%		31	%		45	%		41	%		71	%


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


						Three Months Ended									Nine Months Ended
						September 30,			June 30,			September 30,			September 30,			September 30,
						2010			2010			2009			2010			2009

Cash flows from operating activities:
		Net income (loss)				$	11,196		$	(2,274	)	$	18,812		$	23,121		$	51,709
		Adjustments to reconcile net income (loss) to net cash provided by operating activities:
			Depreciation, amortization and accretion				74,485			63,626			45,066			187,433			132,299
			Stock-based compensation				16,950			18,096			14,033			50,020			39,030
			Debt issuance costs and debt discount				7,160			6,689			6,496			19,403			12,210
			Loss on debt extinguishment and interest rate swaps				-			1,454			-			4,831			-
			Restructuring charges				1,886			4,357			-			6,243			(6,053	)
			Other reconciling items				894			834			(426	)		2,162			3,269
			Changes in operating assets and liabilities:
				Accounts receivable			(6,729	)		(25,671	)		1,003			(38,486	)		(23	)
				Deferred tax assets, net			3,442			(723	)		3,811			7,721			20,750
				Accounts payable and accrued expenses			(3,013	)		3,174			5,714			16,047			18,248
				Other assets and liabilities			6,992			(12,656	)		13,030			(8,514	)		1,543
					Net cash provided by operating activities		113,263			56,906			107,539			269,981			272,982
Cash flows from investing activities:
		Purchases, sales and maturities of investments, net					(115,554	)		(64,987	)		(146,045	)		(68,256	)		(258,582	)
		Purchase of Switch and Data, less cash acquired					-			(113,289	)		-			(113,289	)		-
		Purchase of Upminster, less cash acquired					-			-			(28,176	)		-			(28,176	)
		Purchases of property and equipment					(143,941	)		(148,705	)		(88,195	)		(436,046	)		(267,802	)
		Other investing activities					-			(474	)		1,867			(916	)		12,066
					Net cash used in investing activities		(259,495	)		(327,455	)		(260,549	)		(618,507	)		(542,494	)
Cash flows from financing activities:
		Proceeds from employee equity awards					14,026			11,270			14,096			36,179			23,050
		Proceeds from convertible debt					-			-			-			-			373,750
		Proceeds from mortgage and loans payable					16,853			98,958			27,935			115,811			28,679
		Proceeds from senior notes					-			-			-			750,000			-
		Repayment of capital lease and other financing obligations					(1,713	)		(10,847	)		(1,427	)		(14,114	)		(3,765	)
		Repayment of mortgage and loans payable					(11,049	)		(343,688	)		(11,003	)		(469,077	)		(34,525	)
		Capped call costs					-			-			-			-			(49,664	)
		Equity issuance costs					-			-			(9	)		-			(2,795	)
		Debt issuance costs					(5	)		(7,926	)		(788	)		(23,124	)		(8,210	)
					Net cash provided by (used in) financing activities		18,112			(252,233	)		28,804			395,675			326,520
Effect of foreign currency exchange rates on cash and cash equivalents							5,927			(5,178	)		2,136			(4,056	)		5,932
Net increase (decrease) in cash and cash equivalents							(122,193	)		(527,960	)		(122,070	)		43,093			62,940
Cash and cash equivalents at beginning of period							511,342			1,039,302			405,217			346,056			220,207
Cash and cash equivalents at end of period						$	389,149		$	511,342		$	283,147		$	389,149		$	283,147


Free cash flow (1)						$	(30,678	)	$	(205,562	)	$	(6,965	)	$	(280,270	)	$	(10,930	)

Adjusted free cash flow (2)						$	(30,678	)	$	(92,273	)	$	21,211		$	(166,981	)	$	17,246


(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				$	113,263		$	56,906		$	107,539		$	269,981		$	272,982
		Net cash used in investing activities as presented above					(259,495	)		(327,455	)		(260,549	)		(618,507	)		(542,494	)
		Purchases, sales and maturities of investments, net					115,554			64,987			146,045			68,256			258,582
			Free cash flow (negative free cash flow)			$	(30,678	)	$	(205,562	)	$	(6,965	)	$	(280,270	)	$	(10,930	)

(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)				$	(30,678	)	$	(205,562	)	$	(6,965	)	$	(280,270	)	$	(10,930	)
		Less purchase of Switch and Data, less cash acquired					-			113,289			-			113,289			-
		Less purchase of Upminster, less cash acquired					-			-			28,176			-			28,176
			Adjusted free cash flow (negative adjusted free cash flow)			$	(30,678	)	$	(92,273	)	$	21,211		$	(166,981	)	$	17,246

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			September 30,			December 31,
			2010			2009

Cash and cash equivalents			$	389,149		$	346,056
Short-term investments				322,979			248,508
Accounts receivable, net				115,616			64,767
Other current assets				64,067			68,556
	Total current assets			891,811			727,887
Long-term investments				3,223			9,803
Property, plant and equipment, net				2,582,890			1,808,115
Goodwill				778,258			381,050
Intangible assets, net				155,601			51,015
Other assets				69,108			60,280
	Total assets		$	4,480,891		$	3,038,150

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	134,091		$	99,053
Accrued property and equipment				97,012			109,876
Current portion of capital lease and other financing obligations				7,624			6,452
Current portion of mortgage and loans payable				22,480			58,912
Other current liabilities				49,818			41,166
	Total current liabilities			311,025			315,459
Capital lease and other financing obligations, less current portion				261,929			154,577
Mortgage and loans payable, less current portion				179,027			371,322
Senior notes				750,000			-
Convertible debt				910,495			893,706
Other liabilities				214,442			120,603
	Total liabilities			2,626,918			1,855,667

Common stock				46			39
Additional paid-in capital				2,320,107			1,665,662
Accumulated other comprehensive loss				(103,321	)		(97,238	)
Accumulated deficit				(362,859	)		(385,980	)
	Total stockholders' equity			1,853,973			1,182,483

	Total liabilities and stockholders' equity		$	4,480,891		$	3,038,150



Ending headcount by geographic region is as follows:

	North America headcount			1,164			718
	Asia-pacific headcount			275			236
	Europe headcount			459			347
		Total headcount		1,898			1,301


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

		September 30,		December 31,
		2010		2009

Capital lease and other financing obligations		$	269,553	$	161,029

European financing			-		130,058
Chicago IBX financing			-		109,991
Mortgage payable			89,663		91,756
Asia-Pacific financing			-		64,559
Singapore financing			-		24,559
Netherlands financing			-		9,311
New Asia-Pacific financing			111,844		-
	Total mortgage and loans payable		201,507		430,234

Senior notes			750,000		-

Convertible debt, net of debt discount			910,495		893,706
Plus debt discount			109,241		126,030
	Total convertible debt principal		1,019,736		1,019,736

Total debt outstanding		$	2,240,796	$	1,610,999