REDWOOD CITY, Calif.--(BUSINESS WIRE)--October 26, 2011--Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended September 30, 2011. This quarter included the first full quarterly 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 $417.6 million for the third quarter, a 6% increase over the previous quarter and a 26% increase over the same quarter last year. This result included $17.9 million in revenues from ALOG for the quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $397.4 million for the third quarter, a 6% increase over the previous quarter and a 26% increase over the same quarter last year. Non-recurring revenues were $20.2 million in the quarter.

“Equinix achieved strong results in all three regions and we are on target to surpass our 2011 financial objectives,” said Steve Smith, president and CEO of Equinix. “We plan to make additional investments in Platform Equinix so that we may continue to deliver value to our customers around the globe. Our goal is to generate over $3 billion in annual revenues in 2015, while creating significant returns for our shareholders from these investments.”

Cost of revenues were $228.2 million for the third quarter, a 6% increase over the previous quarter and a 23% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $83.6 million, were $144.6 million for the third quarter, a 5% increase from the previous quarter and a 24% 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 the same quarter last year.

Selling, general and administrative expenses were $109.0 million for the third quarter, a 6% increase over the previous quarter and a 21% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $27.6 million, were $81.4 million for the third quarter, a 7% increase over the previous quarter and a 21% increase over the same quarter last year.

Interest expense was $51.1 million for the third quarter, a 36% increase from the previous quarter and a 33% increase over the same quarter last year, primarily attributed to the $750.0 million 7.00% senior notes offering in July 2011. The Company recorded income tax expense of $5.3 million for the third quarter as compared to income tax expense of $8.1 million in the prior quarter and income tax expense of $4.6 million in the same quarter last year.

Net income attributable to Equinix for the third quarter was $20.3 million. This represents a basic net income per share attributable to Equinix of $0.21 and a diluted net income per share attributable to Equinix of $0.20 based on a weighted average share count of 47.2 million and 47.9 million, respectively, for the third 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 third quarter, was $191.6 million, an increase of 6% over the previous quarter and a 31% 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 $131.5 million, of which $104.9 million was attributed to expansion capital expenditures and $26.6 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $141.9 million for the third quarter as compared to $140.3 million in the previous quarter and $113.3 million for the same quarter last year. Cash used in investing activities was $808.7 million in the third quarter as compared to cash used in investing activities of $209.7 million in the previous quarter and cash used in investing activities of $259.5 million for the same quarter last year. Cash provided by financing activities was $744.1 million for the third quarter, which was primarily related to the net proceeds from the $750.0 million 7.00% senior notes offering, the proceeds from employee equity awards and draw downs of certain loans payable.

As of September 30, 2011, the Company’s cash, cash equivalents and investments were $1.2 billion, as compared to $423.1 million as of June 30, 2011.

For the full year of 2011, total revenues are expected to be greater than $1,600.0 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 $730.0 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.

For the full year of 2012, total revenues are expected to be greater than $1,870.0 million. Adjusted EBITDA for the year is expected to be greater than $850.0 million. Capital expenditures for 2012 are expected to be in the range of $700.0 to $800.0 million, comprised of approximately $120.0 million of ongoing capital expenditures and $580.0 to $680.0 million for expansion capital expenditures.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, October 26, 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, October 26, 2011, at 7:30 p.m. (ET) through November 26, 2011, by dialing 203-369-1814 (domestic and international) and reference the passcode (2011). 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 680 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. http://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 stock-based compensation expense as it primarily 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 they were 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, 2011			June 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010

Recurring revenues					$	397,351		$	376,528		$	314,727		$	1,117,788		$	834,080
Non-recurring revenues						20,250			18,372			15,620			57,742			41,010
			Revenues			417,601			394,900			330,347			1,175,530			875,090

Cost of revenues						228,153			215,572			185,476			638,301			481,108
				Gross profit		189,448			179,328			144,871			537,229			393,982

Operating expenses:
			Sales and marketing			43,070			37,063			31,205			113,769			79,586
			General and administrative			65,976			65,681			58,640			194,258			155,961
			Restructuring charges			1,587			103			1,886			2,186			6,243
			Acquisition costs			699			1,615			1,114			2,729			11,957
				Total operating expenses		111,332			104,462			92,845			312,942			253,747

Income from operations						78,116			74,866			52,026			224,287			140,235

Interest and other income (expense):
			Interest income			679			632			310			1,526			1,307
			Interest expense			(51,114	)		(37,677	)		(38,363	)		(126,152	)		(101,653	)
			Other-than-temporary impairment recovery on investments			-			-			206			-			3,626
			Loss on debt extinguishment and interest rate swaps, net			-			-			-			-			(4,831	)
			Other income (expense)			(1,694	)		1,021			1,654			1,438			193
				Total interest and other, net		(52,129	)		(36,024	)		(36,193	)		(123,188	)		(101,358	)

Income before income taxes						25,987			38,842			15,833			101,099			38,877

			Income tax expense			(5,348	)		(8,109	)		(4,637	)		(24,582	)		(15,756	)

Net income						20,639			30,733			11,196			76,517			23,121

Net income attributable to redeemable non-controlling interests						(320	)		(3	)		-			(323	)		-

Net income attributable to Equinix					$	20,319		$	30,730		$	11,196		$	76,194		$	23,121

Net income per share attributable to Equinix:

			Basic net income per share (1)		$	0.21		$	0.65		$	0.24		$	1.40		$	0.54

			Diluted net income per share (1)		$	0.20		$	0.64		$	0.24		$	1.37		$	0.53

			Shares used in computing basic net income per share			47,202			46,924			45,745			46,861			42,961

			Shares used in computing diluted net income per share			47,943			50,664			46,676			47,694			44,040



	(1)	The net income attributable to Equinix used in the computation of basic and diluted net income per share attributable to Equinix is presented below:

		Net income			$	20,639		$	30,733		$	11,196		$	76,517		$	23,121
		Adjustments attributable to redeemable non-controlling interests:				(10,959	)		-			-			(10,962	)		-
				Net income attributable to Equinix, basic		9,680			30,733			11,196			65,555			23,121
		Interest on convertible debt				-			1,746			-			-			-
				Net income attributable to Equinix, diluted	$	9,680		$	32,479		$	11,196		$	65,555		$	23,121


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


						Three Months Ended									Nine Months Ended
						September 30, 2011			June 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010

Recurring revenues						$	397,351		$	376,528		$	314,727		$	1,117,788		$	834,080
Non-recurring revenues							20,250			18,372			15,620			57,742			41,010
			Revenues (1)				417,601			394,900			330,347			1,175,530			875,090

Cash cost of revenues (2)							144,560			137,558			116,602			404,749			305,578
					Cash gross profit (3)		273,041			257,342			213,745			770,781			569,512

Cash operating expenses (4):
			Cash sales and marketing expenses (5)				34,504			29,261			24,171			90,869			61,514
			Cash general and administrative expenses (6)				46,909			46,753			43,113			139,680			112,110
					Total cash operating expenses (7)		81,413			76,014			67,284			230,549			173,624

Adjusted EBITDA (8)						$	191,628		$	181,328		$	146,461		$	540,232		$	395,888

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

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

Adjusted EBITDA flow-through rate (11)							45	%		44	%		42	%		55	%		41	%


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

		Americas Revenues:

		Colocation				$	193,317		$	187,840		$	164,653		$	557,353			432,154
		Interconnection					49,432			48,164			42,102			143,518			100,938
		Managed infrastructure					15,966			8,706			821			25,439			2,106
		Rental					550			489			520			1,543			1,109
				Recurring revenues			259,265			245,199			208,096			727,853			536,307
		Non-recurring revenues					9,589			8,690			7,229			27,417			19,220
				Revenues			268,854			253,889			215,325			755,270			555,527

		EMEA Revenues:

		Colocation					77,709			74,645			60,970			220,554			171,310
		Interconnection					3,446			3,203			2,305			9,461			6,254
		Managed infrastructure					3,691			3,481			2,734			10,370			8,238
		Rental					262			177			270			557			586
				Recurring revenues			85,108			81,506			66,279			240,942			186,388
		Non-recurring revenues					7,216			7,105			6,515			22,032			16,654
				Revenues			92,324			88,611			72,794			262,974			203,042

		Asia-Pacific Revenues:

		Colocation					41,874			39,101			31,672			117,314			87,510
		Interconnection					6,378			5,818			4,430			17,537			11,819
		Managed infrastructure					4,726			4,904			4,250			14,142			12,056
				Recurring revenues			52,978			49,823			40,352			148,993			111,385
		Non-recurring revenues					3,445			2,577			1,876			8,293			5,136
				Revenues			56,423			52,400			42,228			157,286			116,521

		Worldwide Revenues:

		Colocation					312,900			301,586			257,295			895,221			690,974
		Interconnection					59,256			57,185			48,837			170,516			119,011
		Managed infrastructure					24,383			17,091			7,805			49,951			22,400
		Rental					812			666			790			2,100			1,695
				Recurring revenues			397,351			376,528			314,727			1,117,788			834,080
		Non-recurring revenues					20,250			18,372			15,620			57,742			41,010
				Revenues		$	417,601		$	394,900		$	330,347		$	1,175,530		$	875,090

	(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				$	228,153		$	215,572		$	185,476		$	638,301		$	481,108
		Depreciation, amortization and accretion expense					(82,020	)		(76,515	)		(67,255	)		(229,135	)		(170,573	)
		Stock-based compensation expense					(1,573	)		(1,499	)		(1,619	)		(4,417	)		(4,957	)
				Cash cost of revenues		$	144,560		$	137,558		$	116,602		$	404,749		$	305,578

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

		Americas cash cost of revenues				$	86,503		$	81,886		$	71,879		$	238,599		$	177,247
		EMEA cash cost of revenues					36,930			36,217			29,373			107,638			86,969
		Asia-Pacific cash cost of revenues					21,127			19,455			15,350			58,512			41,362
				Cash cost of revenues		$	144,560		$	137,558		$	116,602		$	404,749		$	305,578

	(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				$	43,070		$	37,063		$	31,205		$	113,769		$	79,586
		Depreciation and amortization expense					(4,413	)		(4,192	)		(3,407	)		(12,271	)		(7,756	)
		Stock-based compensation expense					(4,153	)		(3,610	)		(3,627	)		(10,629	)		(10,316	)
				Cash sales and marketing expenses		$	34,504		$	29,261		$	24,171		$	90,869		$	61,514

	(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				$	65,976		$	65,681		$	58,640		$	194,258		$	155,961
		Depreciation and amortization expense					(5,586	)		(5,719	)		(3,823	)		(16,564	)		(9,104	)
		Stock-based compensation expense					(13,481	)		(13,209	)		(11,704	)		(38,014	)		(34,747	)
				Cash general and administrative expenses		$	46,909		$	46,753		$	43,113		$	139,680		$	112,110

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

		Cash sales and marketing expenses				$	34,504		$	29,261		$	24,171		$	90,869		$	61,514
		Cash general and administrative expenses					46,909			46,753			43,113			139,680			112,110
				Cash SG&A		$	81,413		$	76,014		$	67,284		$	230,549		$	173,624

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

		Americas cash SG&A				$	54,838		$	49,499		$	45,499		$	153,149		$	117,085
		EMEA cash SG&A					17,427			17,545			14,365			51,908			38,122
		Asia-Pacific cash SG&A					9,148			8,970			7,420			25,492			18,417
				Cash SG&A		$	81,413		$	76,014		$	67,284		$	230,549		$	173,624

	(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				$	78,116		$	74,866		$	52,026		$	224,287		$	140,235
		Depreciation, amortization and accretion expense					92,019			86,426			74,485			257,970			187,433
		Stock-based compensation expense					19,207			18,318			16,950			53,060			50,020
		Restructuring charges					1,587			103			1,886			2,186			6,243
		Acquisition costs					699			1,615			1,114			2,729			11,957
				Adjusted EBITDA		$	191,628		$	181,328		$	146,461		$	540,232		$	395,888

		The geographic split of our adjusted EBITDA is presented below:

		Americas income from operations				$	51,659		$	49,072		$	31,921		$	148,050		$	84,051
		Americas depreciation, amortization and accretion expense					58,414			57,246			51,108			169,142			122,363
		Americas stock-based compensation expense					15,176			14,527			12,683			41,545			37,346
		Americas restructuring charges					1,587			103			1,886			2,186			6,243
		Americas acquisition costs					677			1,556			349			2,599			11,192
				Americas adjusted EBITDA			127,513			122,504			97,947			363,522			261,195

		EMEA income from operations					16,305			14,178			10,258			41,954			26,251
		EMEA depreciation, amortization and accretion expense					19,354			18,512			15,531			54,710			43,752
		EMEA stock-based compensation expense					2,308			2,147			2,502			6,750			7,183
		EMEA acquisition costs					-			12			765			14			765
				EMEA adjusted EBITDA			37,967			34,849			29,056			103,428			77,951

		Asia-Pacific income from operations					10,152			11,616			9,847			34,283			29,933
		Asia-Pacific depreciation, amortization and accretion expense					14,251			10,668			7,846			34,118			21,318
		Asia-Pacific stock-based compensation expense					1,723			1,644			1,765			4,765			5,491
		Asia-Pacific acquisition costs					22			47			-			116			-
				Asia-Pacific adjusted EBITDA			26,148			23,975			19,458			73,282			56,742

					Adjusted EBITDA	$	191,628		$	181,328		$	146,461		$	540,232		$	395,888

	(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	%		68	%		67	%		68	%		68	%

		EMEA cash gross margins					60	%		59	%		60	%		59	%		57	%

		Asia-Pacific cash gross margins					63	%		63	%		64	%		63	%		65	%

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

		Americas adjusted EBITDA margins					47	%		48	%		45	%		48	%		47	%

		EMEA adjusted EBITDA margins					41	%		39	%		40	%		39	%		38	%

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

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

		Adjusted EBITDA - current period				$	191,628		$	181,328		$	146,461		$	540,232		$	395,888
		Less adjusted EBITDA - prior period					(181,328	)		(167,276	)		(132,155	)		(427,563	)		(317,230	)
				Adjusted EBITDA growth		$	10,300		$	14,052		$	14,306		$	112,669		$	78,658

		Revenues - current period				$	417,601		$	394,900		$	330,347		$	1,175,530		$	875,090
		Less revenues - prior period					(394,900	)		(363,029	)		(296,094	)		(971,685	)		(683,278	)
				Revenue growth		$	22,701		$	31,871		$	34,253		$	203,845		$	191,812

		Adjusted EBITDA flow-through rate					45	%		44	%		42	%		55	%		41	%


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


						Three Months Ended									Nine Months Ended
						September 30, 2011			June 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010

Cash flows from operating activities:
		Net income				$	20,639		$	30,733		$	11,196		$	76,517		$	23,121
		Adjustments to reconcile net income to net cash
		provided by operating activities:
			Depreciation, amortization and accretion				92,019			86,426			74,485			257,970			187,433
			Stock-based compensation				19,207			18,318			16,950			53,060			50,020
			Debt issuance costs and debt discount				8,207			8,325			7,160			23,816			19,403
			Loss on debt extinguishment and interest rate swaps				-			-			-			-			4,831
			Restructuring charges				1,587			103			1,886			2,186			6,243
			Other reconciling items				711			3,074			894			5,348			2,162
			Changes in operating assets and liabilities:
				Accounts receivable			(9,989	)		(19,409	)		(6,729	)		(26,299	)		(38,486	)
				Deferred tax assets, net			1,760			(2,507	)		3,442			4,893			7,721
				Accounts payable and accrued expenses			32			4,082			(3,013	)		(9,492	)		16,047
				Other assets and liabilities			7,697			11,203			6,992			11,989			(8,514	)
					Net cash provided by operating activities		141,870			140,348			113,263			399,988			269,981
Cash flows from investing activities:
		Purchases, sales and maturities of investments, net					(677,229	)		30,979			(115,554	)		(648,435	)		(68,256	)
		Purchase of ALOG, less cash acquired					-			(41,954	)		-			(41,954	)		-
		Purchase of Switch and Data, less cash acquired					-			-			-			-			(113,289	)
		Purchase of Frankfurt IBX property					-			(9,042	)		-			(9,042	)		-
		Purchase of Paris IBX property					-			-			-			(14,951	)		-
		Purchases of other property and equipment					(131,525	)		(188,875	)		(143,941	)		(495,515	)		(436,046	)
		Other investing activities					61			(845	)		-			(94,922	)		(916	)
					Net cash used in investing activities		(808,693	)		(209,737	)		(259,495	)		(1,304,819	)		(618,507	)
Cash flows from financing activities:
		Proceeds from employee equity awards					11,107			8,929			14,026			35,704			36,179
		Proceeds from loans payable					12,718			55,264			16,853			90,635			115,811
		Proceeds from senior notes					750,000			-			-			750,000			750,000
		Repayment of capital lease and other financing obligations					(3,081	)		(2,355	)		(1,713	)		(7,404	)		(14,114	)
		Repayment of mortgage and loans payable					(11,171	)		-			(11,049	)		(21,273	)		(469,077	)
		Debt issuance costs					(15,426	)		-			(5	)		(15,551	)		(23,124	)
					Net cash provided by financing activities		744,147			61,838			18,112			832,111			395,675
Effect of foreign currency exchange rates on cash and cash equivalents							(4,673	)		957			5,927			402			(4,056	)
Net increase (decrease) in cash and cash equivalents							72,651			(6,594	)		(122,193	)		(72,318	)		43,093
Cash and cash equivalents at beginning of period							297,872			304,466			511,342			442,841			346,056
Cash and cash equivalents at end of period						$	370,523		$	297,872		$	389,149		$	370,523		$	389,149


Free cash flow (1)						$	10,406		$	(100,368	)	$	(30,678	)	$	(256,396	)	$	(280,270	)

Adjusted free cash flow (2)						$	10,406		$	(49,372	)	$	(30,678	)	$	(190,449	)	$	(166,981	)


	(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				$	141,870		$	140,348		$	113,263		$	399,988		$	269,981
		Net cash used in investing activities as presented above					(808,693	)		(209,737	)		(259,495	)		(1,304,819	)		(618,507	)
		Purchases, sales and maturities of investments, net					677,229			(30,979	)		115,554			648,435			68,256
			Free cash flow (negative free cash flow)			$	10,406		$	(100,368	)	$	(30,678	)	$	(256,396	)	$	(280,270	)

	(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)				$	10,406		$	(100,368	)	$	(30,678	)	$	(256,396	)	$	(280,270	)
		Less purchase of ALOG, less cash acquired					-			41,954			-			41,954			-
		Less purchase of Switch and Data, less cash acquired					-			-			-			-			113,289
		Less purchase of Frankfurt IBX property					-			9,042			-			9,042			-
		Less purchase of Paris IBX property					-			-			-			14,951			-
			Adjusted free cash flow (negative adjusted free cash flow)			$	10,406		$	(49,372	)	$	(30,678	)	$	(190,449	)	$	(166,981	)

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@lewispr.com


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

Assets			September 30, 2011			December 31, 2010

Cash and cash equivalents			$	370,523		$	442,841
Short-term investments				700,246			147,192
Accounts receivable, net				144,185			116,358
Other current assets				115,344			71,657
	Total current assets			1,330,298			778,048
Long-term investments				99,419			2,806
Property, plant and equipment, net				3,122,094			2,650,953
Goodwill				867,280			774,365
Intangible assets, net				153,505			150,945
Other assets				158,091			90,892
	Total assets		$	5,730,687		$	4,448,009

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	181,093		$	145,854
Accrued property and equipment				90,181			91,667
Current portion of capital lease and other financing obligations				11,367			7,988
Current portion of loans payable				74,652			19,978
Current portion of convertible debt				243,176			-
Other current liabilities				55,687			52,628
	Total current liabilities			656,156			318,115
Capital lease and other financing obligations, less current portion				376,848			253,945
Loans payable, less current portion				161,984			100,337
Senior notes				1,500,000			750,000
Convertible debt				691,520			916,337
Other liabilities				253,300			228,760
	Total liabilities			3,639,808			2,567,494

Redeemable non-controlling interests				66,372			-

Common stock				47			46
Additional paid-in capital				2,417,781			2,341,586
Accumulated other comprehensive loss				(120,416	)		(112,018	)
Accumulated deficit				(272,905	)		(349,099	)
	Total stockholders' equity			2,024,507			1,880,515

	Total liabilities, redeemable non-controlling interests
	and stockholders' equity		$	5,730,687		$	4,448,009



Ending headcount by geographic region is as follows:

	Americas headcount			1,750			1,156
	EMEA headcount			552			482
	Asia-Pacific headcount			371			283
		Total headcount		2,673			1,921


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

		September 30, 2011	December 31, 2010

Capital lease and other financing obligations		$ 388,215	$ 261,933

Paris IBX financing		40,054	-
ALOG financing		11,738	-
New Asia-Pacific financing		184,844	120,315
	Total loans payable	236,636	120,315

Senior notes		1,500,000	750,000

Convertible debt, net of debt discount		934,696	916,337
Plus debt discount		85,040	103,399
	Total convertible debt principal	1,019,736	1,019,736

Total debt outstanding		$ 3,144,587	$ 2,151,984