Exhibit 99.1

Equinix Reports Fourth Quarter and Year End 2010 Results

REDWOOD CITY, Calif.--(BUSINESS WIRE)--February 9, 2011--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly and year-end results for the period ended December 31, 2010.

Revenues were $345.2 million for the fourth quarter, a 5% increase over the previous quarter and 42% over the same quarter last year. Revenues for the year ended December 31, 2010, were $1,220.3 million, a 38% increase over 2009 revenues. This result included $57.9 million in revenues from Switch and Data for the quarter and $153.0 million in revenues from Switch and Data for the year ended December 31, 2010. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $326.3 million for the fourth quarter, a 4% increase over the previous quarter and $1,160.4 million for the year ended December 31, 2010, a 38% increase over 2009. Non-recurring revenues were $18.9 million in the quarter and $59.9 million for the year ended December 31, 2010.

“Equinix delivered strong financial results in 2010, surpassing $1 billion in annual revenues and expanding our global reach to 11 countries and 35 global markets,” said Steve Smith, CEO and President of Equinix. “With our focus on ecosystems, critical mass of customers, operational reliability and global footprint, Equinix is uniquely positioned to capture the strong demand for our services in 2011.”


Cost of revenues were $193.6 million for the fourth quarter, a 4% increase from the previous quarter, and $674.7 million for the year ended December 31, 2010, a 40% increase over 2009. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $68.1 million for the fourth quarter and $243.7 million for the year, were $125.5 million for the fourth quarter, a 8% increase over the previous quarter, and $431.0 million for the year ended December 31, 2010, a 37% increase over 2009. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 64%, down from 65% for both the previous quarter and the same quarter last year. Cash gross margins were 65% for the full year of 2010, up from 64% for the prior year.

Selling, general and administrative expenses were $96.3 million for the fourth quarter, a 7% increase over the previous quarter and $331.9 million for the year ended December 31, 2010, a 52% increase over 2009. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $25.5 million for the fourth quarter and $87.4 million for the year, were $70.8 million for the fourth quarter, a 5% increase over the previous quarter, and $244.5 million for 2010, a 53% increase over 2009.

Restructuring charges were $0.5 million for the fourth quarter and $6.7 million for the year ended December 31, 2010, which were primarily related to both Switch and Data and an excess space lease in the New York metro area. Acquisition costs were $0.4 million for the fourth quarter and $12.3 million for the year ended December 31, 2010, which were primarily related to Switch and Data.

Interest expense was $38.8 million for the fourth quarter, flat over last quarter, and $140.5 million for the year ended December 31, 2010, an 89% increase over 2009. The Company recorded a loss on debt extinguishment of $5.4 million for the fourth quarter and a loss on debt extinguishment and interest rate swaps, net, of $10.2 million for the year ended December 31, 2010. The Company had no such debt extinguishment activity during 2009. The Company recorded an income tax benefit of $2.8 million for the fourth quarter as compared to income tax expense of $4.6 million in the prior quarter and income tax expense of $13.0 million for the year ended December 31, 2010 as compared to income tax expense of $39.6 million in the prior year.

Net income for the fourth quarter was $13.8 million. This represents a basic net income per share of $0.30 and diluted net income per share of $0.29 based on a weighted average share count of 46.1 million and 46.9 million, respectively, for the fourth quarter of 2010. Net income for the year ended December 31, 2010 was $36.9 million. This represents a basic net income per share of $0.84 and diluted net income per share of $0.82 based on a weighted share count of 43.7 million and 44.8 million, respectively, for the year ended December 31, 2010.


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 $148.9 million, an increase of 2% over the previous quarter and $544.8 million for the year ended December 31, 2010, a 33% increase over 2009.

Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the fourth quarter were $143.4 million, of which $111.0 million was attributed to expansion capital expenditures and $32.4 million was attributed to ongoing capital expenditures. In addition, the Company purchased two buildings in Amsterdam for cash in December 2010 totaling $14.9 million. Capital expenditures for the year ended December 31, 2010 were $579.4 million, of which $464.8 million was attributed to expansion capital expenditures and $114.6 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $122.9 million for the fourth quarter as compared to $113.3 million in the previous quarter. Cash generated from operating activities for the year ended December 31, 2010 was $392.9 million as compared to $355.5 million in the previous year. Cash provided by investing activities was $17.5 million in the fourth quarter as compared to cash used in investing activities of $259.5 million in the previous quarter. Cash used in investing activities for the year was $601.0 million as compared to $558.2 million in the previous year. Cash used in financing activities was $86.0 million for the fourth quarter, which was primarily related to the repayment of the Ashburn mortgage, and cash provided by financing activities was $309.7 million for the year ended December 31, 2010.

As of December 31, 2010, the Company’s cash, cash equivalents and investments were $592.8 million, as compared to $604.4 million as of December 31, 2009.

Company Metrics and Q4 Results Presentation


Business Outlook

For the first quarter of 2011, the Company expects revenues to be in the range of $354.0 to $356.0 million. Cash gross margins are expected to be approximately 64%. Cash selling, general and administrative expenses are expected to be approximately $75.0 million. Adjusted EBITDA is expected to be between $151.0 and $153.0 million. Capital expenditures are expected to be approximately $185.0 million, comprised of approximately $25.0 million of ongoing capital expenditures and $160.0 million of expansion capital expenditures.

For the full year of 2011, total revenues are expected to be greater than $1,500.0 million. Total year cash gross margins are expected to be 65%. Cash selling, general and administrative expenses are expected to be approximately $300.0 million. Adjusted EBITDA for the year is expected to be greater than $675.0 million. Capital expenditures for 2011 are expected to be in the range of $400.0 and $500.0 million, comprised of approximately $100.0 million of ongoing capital expenditures and $300.0 to $400.0 million for expansion capital expenditures.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, February 9, 2011, 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. 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 Wednesday, February 9, 2011 at 7:30 p.m. (ET) through March 10, 2011 by dialing 203-369-1420 and referencing the passcode (2011). 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.

About Equinix

Equinix, Inc. (Nasdaq:EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. More than 3,100 enterprises, cloud, digital content and financial companies connect to more than 625 network service providers and rely on Platform Equinix to grow their business, improve application performance and protect their vital digital assets. Equinix operates in 35 strategic markets across North America, Europe and Asia-Pacific and continually invests in expanding its platform to power customer growth.


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 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.

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,
2010 2010 2009 2010 2009
 
Recurring revenues $ 326,338 $ 314,727 $ 231,465 $ 1,160,418 $ 841,849
Non-recurring revenues   18,906     15,620     11,087     59,916     40,660  
Revenues 345,244 330,347 242,552 1,220,334 882,509
 
Cost of revenues   193,559     185,476     127,074     674,667     483,420  
Gross profit   151,685     144,871     115,478     545,667     399,089  
 
Operating expenses:
Sales and marketing 31,518 31,205 17,269 111,104 63,584
General and administrative 64,820 58,640 43,647 220,781 155,324
Restructuring charges 491 1,886 - 6,734 (6,053 )
Acquisition costs   380     1,114     3,776     12,337     5,155  
Total operating expenses   97,209     92,845     64,692     350,956     218,010  
 
Income from operations   54,476     52,026     50,786     194,711     181,079  
 
Interest and other income (expense):
Interest income 208 310 435 1,515 2,384
Interest expense (38,822 ) (38,363 ) (22,613 ) (140,475 ) (74,232 )
Other-than-temporary impairment recovery (loss) on investments - 206 97 3,626 (2,590 )
Loss on debt extinguishment and interest rate swaps, net (5,356 ) - - (10,187 ) -
Other income (expense)   497     1,654     (1,288 )   690     2,387  
Total interest and other, net   (43,473 )   (36,193 )   (23,369 )   (144,831 )   (72,051 )
 
Income before income taxes 11,003 15,833 27,417 49,880 109,028
 
Income tax benefit (expense) 2,757 (4,637 ) (9,695 ) (12,999 ) (39,597 )
         
Net income $ 13,760   $ 11,196   $ 17,722   $ 36,881   $ 69,431  
 
Net income per share:
 
Basic net income per share $ 0.30   $ 0.24   $ 0.45   $ 0.84   $ 1.80  
 
Diluted net income per share $ 0.29   $ 0.24   $ 0.44   $ 0.82   $ 1.75  
 

Shares used in computing basic net income per share

  46,059     45,745     39,136     43,742     38,488  
 

Shares used in computing diluted net income per share

  46,871     46,735     40,498     44,810     39,676  
 

         
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,
2010 2010 2009 2010 2009
 
Recurring revenues $ 326,338 $ 314,727 $ 231,465 $ 1,160,418 $ 841,849
Non-recurring revenues   18,906     15,620     11,087     59,916     40,660  
Revenues (1)   345,244     330,347     242,552     1,220,334     882,509  
 
Cash cost of revenues (2)   125,456     116,602     85,533     431,034     314,580  
Cash gross profit (3)   219,788     213,745     157,019     789,300     567,929  
 
Cash operating expenses (4):
Cash sales and marketing expenses(5) 25,523 24,171 13,238 87,037 47,875
Cash general and administrative expenses (6)   45,318     43,113     32,121     157,428     111,446  
Total cash operating expenses (7)   70,841     67,284     45,359     244,465     159,321  
 
Adjusted EBITDA (8) $ 148,947   $ 146,461   $ 111,660   $ 544,835   $ 408,608  
 
Cash gross margins (9)   64 %   65 %   65 %   65 %   64 %
 
Adjusted EBITDA margins (10)   43 %   44 %   46 %   45 %   46 %
 
Adjusted EBITDA flow-through rate (11)   17 %   42 %   38 %   40 %   65 %
         
 
(1) The geographic split of our revenues on a services basis is presented below:
 
North America Revenues:
 
Colocation $ 166,477 $ 164,653 $ 115,695 $ 598,631

$

424,083
Interconnection 44,443 42,102 23,048 145,381 89,014
Managed infrastructure 779 821 541 2,885 2,161
Rental   642     520     120     1,751     522  
Recurring revenues 212,341 208,096 139,404 748,648 515,780
Non-recurring revenues   8,307     7,229     5,111     27,527     19,709  
Revenues   220,648     215,325     144,515     776,175     535,489  
 
Europe Revenues:
 
Colocation 64,439 60,970 54,599 235,749 192,677
Interconnection 2,607 2,305 2,017 8,861 6,974
Managed infrastructure 3,002 2,734 3,147 11,240 12,415
Rental   134     270     173     720     569  
Recurring revenues 70,182 66,279 59,936 256,570 212,635
Non-recurring revenues   8,569     6,515     4,538     25,223     15,501  
Revenues   78,751     72,794     64,474     281,793     228,136  
 
Asia-Pacific Revenues:
 
Colocation 34,546 31,672 25,074 122,056 88,100
Interconnection 4,948 4,430 3,263 16,767 10,906
Managed infrastructure   4,321     4,250     3,788     16,377     14,428  
Recurring revenues 43,815 40,352 32,125 155,200 113,434
Non-recurring revenues   2,030     1,876     1,438     7,166     5,450  
Revenues   45,845     42,228     33,563     162,366     118,884  
 
Worldwide Revenues:
 
Colocation 265,462 257,295 195,368 956,436 704,860
Interconnection 51,998 48,837 28,328 171,009 106,894
Managed infrastructure 8,102 7,805 7,476 30,502 29,004
Rental   776     790     293     2,471     1,091  
Recurring revenues 326,338 314,727 231,465 1,160,418 841,849
Non-recurring revenues   18,906     15,620     11,087     59,916     40,660  
Revenues $ 345,244   $ 330,347   $ 242,552   $ 1,220,334   $ 882,509  
 
(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 $ 193,559 $ 185,476 $ 127,074 $ 674,667 $ 483,420
Depreciation, amortization and accretion expense (66,978 ) (67,255 ) (40,072 ) (237,551 ) (162,932 )
Stock-based compensation expense   (1,125 )   (1,619 )   (1,469 )   (6,082 )   (5,908 )
Cash cost of revenues $ 125,456   $ 116,602   $ 85,533   $ 431,034   $ 314,580  
 
The geographic split of our cash cost of revenues is presented below:
 
North America cash cost of revenues $ 72,651 $ 71,879 $ 42,713 $ 249,898 $ 164,491
Europe cash cost of revenues 34,808 29,373 30,142 121,777 106,452
Asia-Pacific cash cost of revenues   17,997     15,350     12,678     59,359     43,637  
Cash cost of revenues $ 125,456   $ 116,602   $ 85,533   $ 431,034   $ 314,580  
 
(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 $ 31,518 $ 31,205 $ 17,269 $ 111,104 $ 63,584
Depreciation and amortization expense (3,645 ) (3,407 ) (1,401 ) (11,401 ) (5,380 )
Stock-based compensation expense   (2,350 )   (3,627 )   (2,630 )   (12,666 )   (10,329 )
Cash sales and marketing expenses $ 25,523   $ 24,171   $ 13,238   $ 87,037   $ 47,875  
 
(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 $ 64,820 $ 58,640 $ 43,647 $ 220,781 $ 155,324
Depreciation and amortization expense (5,508 ) (3,823 ) (1,599 ) (14,612 ) (7,059 )
Stock-based compensation expense   (13,994 )   (11,704 )   (9,927 )   (48,741 )   (36,819 )
Cash general and administrative expenses $ 45,318   $ 43,113   $ 32,121   $ 157,428   $ 111,446  
 
(7) Our cash operating expenses, or cash SG&A, as defined above, is presented below:
 
Cash sales and marketing expenses $ 25,523 $ 24,171 $ 13,238 $ 87,037 $ 47,875
Cash general and administrative expenses   45,318     43,113     32,121     157,428     111,446  
Cash SG&A $ 70,841   $ 67,284   $ 45,359   $ 244,465   $ 159,321  
 
The geographic split of our cash operating expenses, or cash SG&A, is presented below:
 
North America cash SG&A $ 45,469 $ 45,499 $ 26,308 $ 162,554 $ 98,503
Europe cash SG&A 16,212 14,365 12,773 54,334 39,831
Asia-Pacific cash SG&A   9,160     7,420     6,278     27,577     20,987  
Cash SG&A $ 70,841   $ 67,284   $ 45,359   $ 244,465   $ 159,321  
 
(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 $ 54,476 $ 52,026 $ 50,786 $ 194,711 $ 181,079
Depreciation, amortization and accretion expense 76,131 74,485 43,072 263,564 175,371
Stock-based compensation expense 17,469 16,950 14,026 67,489 53,056
Restructuring charges 491 1,886 - 6,734 (6,053 )
Acquisition costs   380     1,114     3,776     12,337     5,155  
Adjusted EBITDA $ 148,947   $ 146,461   $ 111,660   $ 544,835   $ 408,608  
 
The geographic split of our adjusted EBITDA is presented below:
 
North America income from operations $ 37,067 $ 31,921 $ 33,908 $ 121,118 $ 128,168
North America depreciation, amortization and accretion expense 51,448 51,108 27,056 173,811 106,207
North America stock-based compensation expense 13,620 12,683 10,759 50,966 40,082
North America restructuring charges 491 1,886 - 6,734 (6,053 )
North America acquisition costs   (98 )   349     3,771     11,094     4,091  
North America adjusted EBITDA   102,528     97,947     75,494     363,723     272,495  
 
Europe income from operations 8,678 10,258 10,794 34,929 31,202
Europe depreciation, amortization and accretion expense 16,539 15,531 9,293 60,291 43,744
Europe stock-based compensation expense 2,214 2,502 1,467 9,397 5,843
Europe acquisition costs   300     765     5     1,065     1,064  
Europe adjusted EBITDA   27,731     29,056     21,559     105,682     81,853  
 
Asia-Pacific income from operations 8,731 9,847 6,084 38,664 21,709
Asia-Pacific depreciation, amortization and accretion expense 8,144 7,846 6,723 29,462 25,420
Asia-Pacific stock-based compensation expense 1,635 1,765 1,800 7,126 7,131
Asia-Pacific acquisition costs   178     -     -     178     -  
Asia-Pacific adjusted EBITDA   18,688     19,458     14,607     75,430     54,260  
 
Adjusted EBITDA $ 148,947   $ 146,461   $ 111,660   $ 544,835   $ 408,608  
 
(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 %   67 %   70 %   68 %   69 %
 
Europe cash gross margins   56 %   60 %   53 %   57 %   53 %
 
Asia-Pacific cash gross margins   61 %   64 %   62 %   63 %   63 %
 
(10) We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
 
North America adjusted EBITDA margins   46 %   45 %   52 %   47 %   51 %
 
Europe adjusted EBITDA margins   35 %   40 %   33 %   38 %   36 %
 
Asia-Pacific adjusted EBITDA margins   41 %   46 %   44 %   46 %   46 %
 
(11)

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

 
Adjusted EBITDA - current period $ 148,947 $ 146,461 $ 111,660 $ 544,835 $ 408,608
Less adjusted EBITDA - prior period   (146,461 )   (132,155 )   (106,036 )   (408,608 )   (292,476 )
Adjusted EBITDA growth $ 2,486   $ 14,306   $ 5,624   $ 136,227   $ 116,132  
 
Revenues - current period $ 345,244 $ 330,347 $ 242,552 $ 1,220,334 $ 882,509
Less revenues - prior period   (330,347 )   (296,094 )   (227,558 )   (882,509 )   (704,680 )
Revenue growth $ 14,897   $ 34,253   $ 14,994   $ 337,825   $ 177,829  
 
Adjusted EBITDA flow-through rate   17 %   42 %   38 %   40 %   65 %
 

   
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
Assets December 31, December 31,
2010 2009
 
Cash and cash equivalents $ 442,841 $ 346,056
Short-term investments 147,192 248,508
Accounts receivable, net 116,358 64,767
Other current assets   71,657     68,556  
Total current assets 778,048 727,887
Long-term investments 2,806 9,803
Property, plant and equipment, net 2,650,953 1,808,115
Goodwill 774,365 381,050
Intangible assets, net 150,945 51,015
Other assets   90,892     60,280  
Total assets $ 4,448,009   $ 3,038,150  
 
Liabilities and Stockholders' Equity
 
Accounts payable and accrued expenses $ 145,854 $ 99,053
Accrued property and equipment 91,667 109,876
Current portion of capital lease and other financing obligations 7,988 6,452
Current portion of mortgage and loans payable 19,978 58,912
Other current liabilities   52,628     41,166  
Total current liabilities 318,115 315,459
Capital lease and other financing obligations, less current portion 253,945 154,577
Mortgage and loans payable, less current portion 100,337 371,322
Senior notes 750,000 -
Convertible debt 916,337 893,706
Other liabilities   228,760     120,603  
Total liabilities   2,567,494     1,855,667  
 
Common stock 46 39
Additional paid-in capital 2,341,586 1,665,662
Accumulated other comprehensive loss (112,018 ) (97,238 )
Accumulated deficit   (349,099 )   (385,980 )
Total stockholders' equity   1,880,515     1,182,483  
 
Total liabilities and stockholders' equity $ 4,448,009   $ 3,038,150  
 
           
 
Ending headcount by geographic region is as follows:
 
North America headcount 1,156 718
Europe headcount 482 347
Asia-pacific headcount   283     236  
Total headcount   1,921     1,301  
 

   
EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)
 
December 31, December 31,
2010 2009
 
Capital lease and other financing obligations $ 261,933 $ 161,029
 
Chicago IBX financing - 109,991
Mortgage payable - 91,756
European financing - 130,058
Netherlands financing - 9,311
Asia-Pacific financing - 64,559
Singapore financing - 24,559
New Asia-Pacific financing   120,315   -
Total mortgage and loans payable   120,315   430,234
 
Senior notes   750,000   -
 
Convertible debt, net of debt discount 916,337 893,706
Plus debt discount   103,399   126,030
Total convertible debt principal   1,019,736   1,019,736
 
Total debt outstanding $ 2,151,984 $ 1,610,999
 

         
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,
2010 2010 2009 2010 2009
 
Cash flows from operating activities:
Net income $ 13,760 $ 11,196 $ 17,722 $ 36,881 $ 69,431

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion 76,131 74,485 43,072 263,564 175,371
Stock-based compensation 17,469 16,950 14,026 67,489 53,056
Debt issuance costs and debt discount 8,512 7,160 6,581 27,915 18,791
Loss on debt extinguishment and interest rate swaps 5,356 - - 10,187 -
Restructuring charges 491 1,886 - 6,734 (6,053 )
Other reconciling items 1,888 894 184 4,050 3,453
Changes in operating assets and liabilities:
Accounts receivable (1,400 ) (6,729 ) 2,300 (39,886 ) 2,277
Deferred tax assets, net (1,611 ) 3,442 7,231 6,110 27,981
Accounts payable and accrued expenses 14,316 (3,013 ) (4,876 ) 30,363 22,762
Other assets and liabilities   (12,021 )   6,992     (3,730 )   (20,535 )   (11,577 )
Net cash provided by operating activities   122,891     113,263     82,510     392,872     355,492  
Cash flows from investing activities:
Purchases, sales and maturities of investments, net 176,172 (115,554 ) 85,924 107,916 (172,658 )
Purchase of Switch and Data, less cash acquired - - - (113,289 ) -
Purchase of Upminster, less cash acquired - - - - (28,176 )
Purchase of Amsterdam IBX property (14,861 ) - - (14,861 ) -
Purchases of property and equipment (143,351 ) (143,941 ) (101,740 ) (579,397 ) (369,542 )
Other investing activities   (422 )   -     132     (1,338 )   12,198  
Net cash provided by (used in) investing activities   17,538     (259,495 )   (15,684 )   (600,969 )   (558,178 )
Cash flows from financing activities:
Proceeds from employee equity awards 3,638 14,026 13,956 39,817 37,006
Proceeds from convertible debt - - - - 373,750
Proceeds from mortgage and loans payable 5,770 16,853 795 121,581 29,474
Proceeds from senior notes - - - 750,000 -
Repayment of capital lease and other financing obligations (2,019 ) (1,713 ) (1,514 ) (16,133 ) (5,279 )
Repayment of mortgage and loans payable (88,930 ) (11,049 ) (16,593 ) (558,007 ) (51,118 )
Capped call costs - - - - (49,664 )
Equity issuance costs - - - - (2,795 )
Debt issuance costs - (5 ) (10 ) (23,124 ) (8,220 )
Debt extinguishment costs (4,448 ) - - (4,448 ) -
Other financing activities   -     -     444     -     444  
Net cash provided by (used in) financing activities   (85,989 )   18,112     (2,922 )   309,686     323,598  
Effect of foreign currency exchange rates on cash and cash equivalents   (748 )   5,927     (995 )   (4,804 )   4,937  
Net increase (decrease) in cash and cash equivalents 53,692 (122,193 ) 62,909 96,785 125,849
Cash and cash equivalents at beginning of period   389,149     511,342     283,147     346,056     220,207  
Cash and cash equivalents at end of period $ 442,841   $ 389,149   $ 346,056   $ 442,841   $ 346,056  
 
 
Free cash flow (1) $ (35,743 ) $ (30,678 ) $ (19,098 ) $ (316,013 ) $ (30,028 )
 
Adjusted free cash flow (2) $ (20,882 ) $ (30,678 ) $ (19,098 ) $ (187,863 ) $ (1,852 )
           
 
(1)

We define free cash flow as net cash provided by operating activities plus net cash provided by (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 $ 122,891 $ 113,263 $ 82,510 $ 392,872 $ 355,492
Net cash provided by (used in) investing activities as presented above 17,538 (259,495 ) (15,684 ) (600,969 ) (558,178 )
Purchases, sales and maturities of investments, net   (176,172 )   115,554     (85,924 )   (107,916 )   172,658  
Free cash flow (negative free cash flow) $ (35,743 ) $ (30,678 ) $ (19,098 ) $ (316,013 ) $ (30,028 )
 
(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) $ (35,743 ) $ (30,678 ) $ (19,098 ) $ (316,013 ) $ (30,028 )
Less purchase of Switch and Data, less cash acquired - - - 113,289 -
Less purchase of Upminster, less cash acquired - - - - 28,176
Less purchase of Amsterdam IBX property   14,861     -     -     14,861     -  
Adjusted free cash flow (negative adjusted free cash flow) $ (20,882 ) $ (30,678 ) $ (19,098 ) $ (187,863 ) $ (1,852 )
 

CONTACT:
Equinix Investor Relations Contacts:
Equinix, Inc.
Katrina Rymill, 650-598-6583
krymill@equinix.com
Jason Starr, 650-598-6020
jstarr@equinix.com
or
Equinix Media Contact:
LEWIS PR
Scott Blevins, 415-992-4400
equinixlewisus@equinix.com