REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 27, 2011--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended June 30, 2011. This quarter included the results from the acquisition of an indirect, controlling equity interest in ALOG Data Centers do Brasil S.A. from April 25, 2011, which is referred to as the ALOG acquisition.

Revenues were $394.9 million for the second quarter, a 9% increase over the previous quarter and a 33% increase over the same quarter last year. This result included $11.7 million in revenues from ALOG for the quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $376.5 million for the second quarter, a 9% increase over the previous quarter and a 33% increase over the same quarter last year. Non-recurring revenues were $18.4 million in the quarter.

“With outstanding first-half results, Equinix is on target to surpass its original financial objectives for 2011. Solid market fundamentals such as the growth of IP, mobile, video, cloud and electronic trading combined with our global leadership position set us up well for the long term,” said Steve Smith, president and CEO of Equinix. “Our investments are paying off and we will continue to carefully allocate capital to support our growth, while generating attractive returns for our shareholders.”

Cost of revenues were $215.6 million for the second quarter, an 11% increase over the previous quarter and a 33% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $78.0 million, were $137.6 million for the second quarter, a 12% increase from the previous quarter and a 32% 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%, down from 66% for the previous quarter and unchanged from the same quarter last year.

Selling, general and administrative expenses were $102.7 million for the second quarter, a 7% increase over the previous quarter and a 24% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $26.7 million, were $76.0 million for the second quarter, a 4% increase over the previous quarter and a 27% increase over the same quarter last year.

Interest expense was $37.7 million for the second quarter, a 1% increase from the previous quarter and essentially flat over the same quarter last year. The Company recorded income tax expense of $8.1 million for the second quarter as compared to an income tax expense of $11.1 million in the prior quarter and income tax expense of $2.4 million in the same quarter last year.

Net income attributable to Equinix for the second quarter was $30.7 million. This represents a basic net income per share attributable to Equinix of $0.65 and diluted net income per share of $0.64 based on a weighted average share count of 46.9 million and 50.7 million, respectively, for the second quarter of 2011.

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 $181.3 million, an increase of 8% over the previous quarter and a 37% 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 $188.9 million, of which $160.9 million was attributed to expansion capital expenditures and $28.0 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $140.3 million for the second quarter as compared to $117.8 million in the previous quarter and $56.9 million for the same quarter last year. Cash used in investing activities was $209.7 million in the second quarter as compared to cash used in investing activities of $286.4 million in the previous quarter and cash used in investing activities of $327.5 million for the same quarter last year. Cash provided by financing activities was $61.8 million for the second quarter, which was primarily related to the proceeds from employee equity awards and draw downs of certain loans payable.

As of June 30, 2011, the Company’s cash, cash equivalents and investments were $423.1 million, as compared to $456.7 million as of March 31, 2011. In July 2011, the Company received net proceeds from the 7.00% senior notes offering of approximately $735.6 million.

For the third quarter of 2011, the Company expects revenues to be in the range of $412.0 to $417.0 million. Cash gross margins are expected to be approximately 65%. Cash selling, general and administrative expenses are expected to be approximately $86.0 million. Adjusted EBITDA is expected to be between $180.0 and $185.0 million. Capital expenditures are expected to be approximately $160.0 and $180.0 million, comprised of approximately $30.0 million of ongoing capital expenditures and $130.0 to $150.0 million of expansion capital expenditures.

For the full year of 2011, total revenues are expected to be greater than $1,590.0 million. Total year cash gross margins are expected to range between 65% and 66%. Cash selling, general and administrative expenses are expected to approximate $320.0 million. Adjusted EBITDA for the year is expected to be greater than $720.0 million. Capital expenditures for 2011 are expected to be in the range of $645.0 to $665.0 million, comprised of approximately $115.0 million of ongoing capital expenditures and $530.0 to $550.0 million for expansion capital expenditures.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, July 27, 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, July 27, 2011, at 7:30 p.m. (ET) through August 28, 2011, by dialing 203-369-1470. In addition, the webcast will be available on the company's web site at www.equinix.com/investors over the same time period. No password is required for the replay or the webcast.

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. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 675 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. 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									Six Months Ended
			June 30,			March 31,			June 30,			June 30,			June 30,
				2011			2011			2010			2011			2010

Recurring revenues			$	376,528		$	343,909		$	282,117		$	720,437		$	519,353
Non-recurring revenues				18,372			19,120			13,977			37,492			25,390
	Revenues			394,900			363,029			296,094			757,929			544,743

Cost of revenues				215,572			194,576			162,582			410,148			295,632
		Gross profit		179,328			168,453			133,512			347,781			249,111

Operating expenses:
	Sales and marketing			37,063			33,636			28,913			70,699			48,381
	General and administrative			65,681			62,601			54,166			128,282			97,321
	Restructuring charges			103			496			4,357			599			4,357
	Acquisition costs			1,615			415			5,849			2,030			10,843
		Total operating expenses		104,462			97,148			93,285			201,610			160,902

Income from operations				74,866			71,305			40,227			146,171			88,209

Interest and other income (expense):
	Interest income			632			215			491			847			997
	Interest expense			(37,677	)		(37,361	)		(37,615	)		(75,038	)		(63,290	)
	Other-than-temporary impairment recovery on investments			-			-			-			-			3,420
	Loss on debt extinguishment and interest rate swaps, net			-			-			(1,454	)		-			(4,831	)
	Other income (expense)			1,021			2,111			(1,481	)		3,132			(1,461	)
		Total interest and other, net		(36,024	)		(35,035	)		(40,059	)		(71,059	)		(65,165	)

Income before income taxes				38,842			36,270			168			75,112			23,044

	Income tax expense			(8,109	)		(11,125	)		(2,442	)		(19,234	)		(11,119	)

Net income (loss)				30,733			25,145			(2,274	)		55,878			11,925

Net (income) loss attributable to redeemable non-controlling interests				(3	)		-			-			(3	)		-

Net income (loss) attributable to Equinix			$	30,730		$	25,145		$	(2,274	)	$	55,875		$	11,925

Net income (loss) per share attributable to Equinix:

	Basic net income (loss) per share		$	0.65		$	0.54		$	(0.05	)	$	1.20		$	0.29

	Diluted net income (loss) per share		$	0.64		$	0.53		$	(0.05	)	$	1.18		$	0.28

	Shares used in computing basic net income (loss) per share			46,924			46,451			43,507			46,688			41,546

	Shares used in computing diluted net income (loss) per share			50,664			47,219			43,507			50,454			42,694

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,
					2011			2011			2010			2011			2010

Recurring revenues				$	376,528		$	343,909		$	282,117		$	720,437		$	519,353
Non-recurring revenues					18,372			19,120			13,977			37,492			25,390
	Revenues (1)				394,900			363,029			296,094			757,929			544,743

Cash cost of revenues (2)					137,558			122,631			103,892			260,189			188,976
			Cash gross profit (3)		257,342			240,398			192,202			497,740			355,767

Cash operating expenses (4):
	Cash sales and marketing expenses (5)				29,261			27,104			22,158			56,365			37,343
	Cash general and administrative expenses (6)				46,753			46,018			37,889			92,771			68,997
			Total cash operating expenses (7)		76,014			73,122			60,047			149,136			106,340

Adjusted EBITDA (8)				$	181,328		$	167,276		$	132,155		$	348,604		$	249,427

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

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

Adjusted EBITDA flow-through rate (11)					44	%		103	%		31	%		65	%		43	%


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

	Americas Revenues:

	Colocation			$	187,840		$	176,196		$	148,569		$	364,036			267,501
	Interconnection				49,886			45,922			35,072			95,808			58,836
	Managed infrastructure				6,984			767			746			7,751			1,285
	Rental				489			504			407			993			589
		Recurring revenues			245,199			223,389			184,794			468,588			328,211
	Non-recurring revenues				8,690			9,138			6,852			17,828			11,991
		Revenues			253,889			232,527			191,646			486,416			340,202

	EMEA Revenues:

	Colocation				74,645			68,200			55,898			142,845			110,340
	Interconnection				3,203			2,812			2,010			6,015			3,949
	Managed infrastructure				3,481			3,198			2,603			6,679			5,504
	Rental				177			118			153			295			316
		Recurring revenues			81,506			74,328			60,664			155,834			120,109
	Non-recurring revenues				7,105			7,711			5,420			14,816			10,139
		Revenues			88,611			82,039			66,084			170,650			130,248

	Asia-Pacific Revenues:

	Colocation				39,101			36,339			28,853			75,440			55,838
	Interconnection				5,818			5,341			3,860			11,159			7,389
	Managed infrastructure				4,904			4,512			3,946			9,416			7,806
		Recurring revenues			49,823			46,192			36,659			96,015			71,033
	Non-recurring revenues				2,577			2,271			1,705			4,848			3,260
		Revenues			52,400			48,463			38,364			100,863			74,293

	Worldwide Revenues:

	Colocation				301,586			280,735			233,320			582,321			433,679
	Interconnection				58,907			54,075			40,942			112,982			70,174
	Managed infrastructure				15,369			8,477			7,295			23,846			14,595
	Rental				666			622			560			1,288			905
		Recurring revenues			376,528			343,909			282,117			720,437			519,353
	Non-recurring revenues				18,372			19,120			13,977			37,492			25,390
		Revenues		$	394,900		$	363,029		$	296,094		$	757,929		$	544,743

(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			$	215,572		$	194,576		$	162,582		$	410,148		$	295,632
	Depreciation, amortization and accretion expense				(76,515	)		(70,600	)		(56,946	)		(147,115	)		(103,318	)
	Stock-based compensation expense				(1,499	)		(1,345	)		(1,744	)		(2,844	)		(3,338	)
		Cash cost of revenues		$	137,558		$	122,631		$	103,892		$	260,189		$	188,976

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

	Americas cash cost of revenues			$	81,886		$	70,210		$	61,220		$	152,096		$	105,368
	EMEA cash cost of revenues				36,217			34,491			29,060			70,708			57,596
	Asia-Pacific cash cost of revenues				19,455			17,930			13,612			37,385			26,012
		Cash cost of revenues		$	137,558		$	122,631		$	103,892		$	260,189		$	188,976

(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			$	37,063		$	33,636		$	28,913		$	70,699		$	48,381
	Depreciation and amortization expense				(4,192	)		(3,666	)		(2,997	)		(7,858	)		(4,349	)
	Stock-based compensation expense				(3,610	)		(2,866	)		(3,758	)		(6,476	)		(6,689	)
		Cash sales and marketing expenses		$	29,261		$	27,104		$	22,158		$	56,365		$	37,343

(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			$	65,681		$	62,601		$	54,166		$	128,282		$	97,321
	Depreciation and amortization expense				(5,719	)		(5,259	)		(3,683	)		(10,978	)		(5,281	)
	Stock-based compensation expense				(13,209	)		(11,324	)		(12,594	)		(24,533	)		(23,043	)
		Cash general and administrative expenses		$	46,753		$	46,018		$	37,889		$	92,771		$	68,997

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

	Cash sales and marketing expenses			$	29,261		$	27,104		$	22,158		$	56,365		$	37,343
	Cash general and administrative expenses				46,753			46,018			37,889			92,771			68,997
		Cash SG&A		$	76,014		$	73,122		$	60,047		$	149,136		$	106,340

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

	Americas cash SG&A			$	49,499		$	48,812		$	40,960		$	98,311		$	71,586
	EMEA cash SG&A				17,545			16,936			13,084			34,481			23,757
	Asia-Pacific cash SG&A				8,970			7,374			6,003			16,344			10,997
		Cash SG&A		$	76,014		$	73,122		$	60,047		$	149,136		$	106,340

(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			$	74,866		$	71,305		$	40,227		$	146,171		$	88,209
	Depreciation, amortization and accretion expense				86,426			79,525			63,626			165,951			112,948
	Stock-based compensation expense				18,318			15,535			18,096			33,853			33,070
	Restructuring charges				103			496			4,357			599			4,357
	Acquisition costs				1,615			415			5,849			2,030			10,843
		Adjusted EBITDA		$	181,328		$	167,276		$	132,155		$	348,604		$	249,427

	The geographic split of our adjusted EBITDA is presented below:

	Americas income from operations			$	49,072		$	47,319		$	22,529		$	96,391		$	52,130
	Americas depreciation, amortization and accretion expense				57,246			53,482			43,081			110,728			71,255
	Americas stock-based compensation expense				14,527			11,842			13,650			26,369			24,663
	Americas restructuring charges				103			496			4,357			599			4,357
	Americas acquisition costs				1,556			366			5,849			1,922			10,843
		Americas adjusted EBITDA			122,504			113,505			89,466			236,009			163,248

	EMEA income from operations				14,178			11,471			7,672			25,649			15,993
	EMEA depreciation, amortization and accretion expense				18,512			16,844			13,737			35,356			28,221
	EMEA stock-based compensation expense				2,147			2,295			2,531			4,442			4,681
	EMEA acquisition costs				12			2			-			14			-
		EMEA adjusted EBITDA			34,849			30,612			23,940			65,461			48,895

	Asia-Pacific income from operations				11,616			12,515			10,026			24,131			20,086
	Asia-Pacific depreciation, amortization and accretion expense				10,668			9,199			6,808			19,867			13,472
	Asia-Pacific stock-based compensation expense				1,644			1,398			1,915			3,042			3,726
	Asia-Pacific acquisition costs				47			47			-			94			-
		Asia-Pacific adjusted EBITDA			23,975			23,159			18,749			47,134			37,284

			Adjusted EBITDA	$	181,328		$	167,276		$	132,155		$	348,604		$	249,427

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

	Our cash gross margins by geographic region is presented below:

	Americas cash gross margins				68	%		70	%		68	%		69	%		69	%

	EMEA cash gross margins				59	%		58	%		56	%		59	%		56	%

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

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

	Americas adjusted EBITDA margins				48	%		49	%		47	%		49	%		48	%

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

	Asia-Pacific adjusted EBITDA margins				46	%		48	%		49	%		47	%		50	%

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

	Adjusted EBITDA - current period			$	181,328		$	167,276		$	132,155		$	348,604		$	249,427
	Less adjusted EBITDA - prior period				(167,276	)		(148,947	)		(117,272	)		(295,408	)		(217,696	)
		Adjusted EBITDA growth		$	14,052		$	18,329		$	14,883		$	53,196		$	31,731

	Revenues - current period			$	394,900		$	363,029		$	296,094		$	757,929		$	544,743
	Less revenues - prior period				(363,029	)		(345,244	)		(248,649	)		(675,591	)		(470,110	)
		Revenue growth		$	31,871		$	17,785		$	47,445		$	82,338		$	74,633

	Adjusted EBITDA flow-through rate				44	%		103	%		31	%		65	%		43	%

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

Assets			June 30,			December 31,
				2011			2010

Cash and cash equivalents			$	297,872		$	442,841
Short-term investments				94,246			147,192
Accounts receivable, net				140,316			116,358
Other current assets				116,654			71,657
	Total current assets			649,088			778,048
Long-term investments				30,960			2,806
Property, plant and equipment, net				3,085,202			2,650,953
Goodwill				897,461			774,365
Intangible assets, net				163,771			150,945
Other assets				142,709			90,892
	Total assets		$	4,969,191		$	4,448,009

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	189,739		$	145,854
Accrued property and equipment				90,652			91,667
Current portion of capital lease and other financing obligations				9,461			7,988
Current portion of loans payable				31,459			19,978
Current portion of convertible debt				240,134			-
Other current liabilities				59,006			52,628
	Total current liabilities			620,451			318,115
Capital lease and other financing obligations, less current portion				337,274			253,945
Loans payable, less current portion				201,233			100,337
Senior notes				750,000			750,000
Convertible debt				688,300			916,337
Other liabilities				238,684			228,760
	Total liabilities			2,835,942			2,567,494

Redeemable non-controlling interests				69,050			-

Common stock				47			46
Additional paid-in capital				2,399,055			2,341,586
Accumulated other comprehensive loss				(41,679	)		(112,018	)
Accumulated deficit				(293,224	)		(349,099	)
	Total stockholders' equity			2,064,199			1,880,515

	Total liabilities, redeemable non-controlling interests and stockholders' equity		$	4,969,191		$	4,448,009



Ending headcount by geographic region is as follows:

	Americas headcount			1,672			1,156
	EMEA headcount			526			482
	Asia-Pacific headcount			341			283
		Total headcount		2,539			1,921

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,
						2011			2011			2010			2011			2010

Cash flows from operating activities:
	Net income (loss)				$	30,733		$	25,145		$	(2,274	)	$	55,878		$	11,925
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Depreciation, amortization and accretion				86,426			79,525			63,626			165,951			112,948
		Stock-based compensation				18,318			15,535			18,096			33,853			33,070
		Debt issuance costs and debt discount				8,325			7,284			6,689			15,609			12,243
		Loss on debt extinguishment and interest rate swaps				-			-			1,454			-			4,831
		Restructuring charges				103			496			4,357			599			4,357
		Other reconciling items				3,074			1,563			834			4,637			1,268
		Changes in operating assets and liabilities:
			Accounts receivable			(19,409	)		3,099			(25,671	)		(16,310	)		(31,757	)
			Deferred tax assets, net			(2,507	)		5,640			(723	)		3,133			4,279
			Accounts payable and accrued expenses			4,082			(13,606	)		3,174			(9,524	)		19,060
			Other assets and liabilities			11,203			(6,911	)		(12,656	)		4,292			(15,506	)
				Net cash provided by operating activities		140,348			117,770			56,906			258,118			156,718
Cash flows from investing activities:
	Purchases, sales and maturities of investments, net					30,979			(2,185	)		(64,987	)		28,794			47,298
	Purchase of ALOG, less cash acquired					(41,954	)		-			-			(41,954	)		-
	Purchase of Switch and Data, less cash acquired					-			-			(113,289	)		-			(113,289	)
	Purchase of Frankfurt IBX property					(9,042	)		-			-			(9,042	)		-
	Purchase of Paris IBX property					-			(14,951	)		-			(14,951	)		-
	Purchases of property and equipment					(188,875	)		(175,115	)		(148,705	)		(363,990	)		(292,105	)
	Other investing activities					(845	)		(94,138	)		(474	)		(94,983	)		(916	)
				Net cash used in investing activities		(209,737	)		(286,389	)		(327,455	)		(496,126	)		(359,012	)
Cash flows from financing activities:
	Proceeds from employee equity awards					8,929			15,668			11,270			24,597			22,153
	Proceeds from loans payable					55,264			22,653			98,958			77,917			98,958
	Proceeds from senior notes					-			-			-			-			750,000
	Repayment of capital lease and other financing obligations					(2,355	)		(1,968	)		(10,847	)		(4,323	)		(12,401	)
	Repayment of mortgage and loans payable					-			(10,102	)		(343,688	)		(10,102	)		(458,028	)
	Debt issuance costs					-			(125	)		(7,926	)		(125	)		(23,119	)
				Net cash provided by (used in) financing activities		61,838			26,126			(252,233	)		87,964			377,563
Effect of foreign currency exchange rates on cash and cash equivalents						957			4,118			(5,178	)		5,075			(9,983	)
Net increase (decrease) in cash and cash equivalents						(6,594	)		(138,375	)		(527,960	)		(144,969	)		165,286
Cash and cash equivalents at beginning of period						304,466			442,841			1,039,302			442,841			346,056
Cash and cash equivalents at end of period					$	297,872		$	304,466		$	511,342		$	297,872		$	511,342


Free cash flow (1)					$	(100,368	)	$	(166,434	)	$	(205,562	)	$	(266,802	)	$	(249,592	)

Adjusted free cash flow (2)					$	(49,372	)	$	(151,483	)	$	(92,273	)	$	(200,855	)	$	(136,303	)


(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				$	140,348		$	117,770		$	56,906		$	258,118		$	156,718
	Net cash used in investing activities as presented above					(209,737	)		(286,389	)		(327,455	)		(496,126	)		(359,012	)
	Purchases, sales and maturities of investments, net					(30,979	)		2,185			64,987			(28,794	)		(47,298	)
		Free cash flow (negative free cash flow)			$	(100,368	)	$	(166,434	)	$	(205,562	)	$	(266,802	)	$	(249,592	)

(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)				$	(100,368	)	$	(166,434	)	$	(205,562	)	$	(266,802	)	$	(249,592	)
	Less purchase of ALOG, less cash acquired					41,954			-			-			41,954			-
	Less purchase of Switch and Data, less cash acquired					-			-			113,289			-			113,289
	Less purchase of Frankfurt IBX property					9,042			-			-			9,042			-
	Less purchase of Paris IBX property					-			14,951			-			14,951			-
		Adjusted free cash flow (negative adjusted free cash flow)			$	(49,372	)	$	(151,483	)	$	(92,273	)	$	(200,855	)	$	(136,303	)

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

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

		June 30,		December 31,
		2011		2010

Capital lease and other financing obligations		$	346,735	$	261,933

Paris IBX financing			20,594		-
ALOG financing			19,254		-
New Asia-Pacific financing			192,844		120,315
	Total loans payable		232,692		120,315

Senior notes			750,000		750,000

Convertible debt, net of debt discount			928,434		916,337
Plus debt discount			91,302		103,399
	Total convertible debt principal		1,019,736		1,019,736

Total debt outstanding		$	2,349,163	$	2,151,984