Internap Makes Profit, Gets Noticed
May 10th, 2006 By: Rich Miller
Internap is one of those companies that keeps a low profile while delivering key Internet services to lots of companies that are familiar names. An example: Friendster, the social networking site, which uses Internap to manage its substantial bandwidth requirements. That customer relationship was noted by the Motley Fool, the popular investment site which took note of Internap because the company posted its first profit:
Founded 10 years ago, Internap Network Services (AMEX: IIP – News) was finally able to post a profit. In the fourth quarter, net income was $541,000, or break-even per share. This compares to a net loss of $600,000 for the same period a year ago. During this time, revenues increased 12.6% to $42.6 million.
The Fool article also noted that Internap will need to invest additional dollars in its network. Managing growth – and the cost of growth – will clearly be a major theme for data center service providers in the next year or two.