Options Inquiry Delays Equinix Results
August 3rd, 2006 By: Rich Miller
Equinix Inc. expects to book additional stock-option expenses after an internal review found that the dates on some options differed from their recorded grant dates, the company said Wednesday. Equinix may have to restate prior financial results, and thus will delay its complete second-quarter earnings report until the internal review is finished.
“Equinix intends to issue full results for the quarter as soon as practicable after the review is complete,” the company said, adding that it plans to file within the 45-day reporting period allowed under SEC rules. Equinix is one of more than 60 companies that have been questioned by the Securities and Exchange Commission or federal prosecutors about possible backdating of option grants.
The company said preliminary second-quarter revenue rose 31 percent to $68.5 million.
“We continue to experience strong momentum across all areas of our business,” said Peter Van Camp, chairman and CEO, Equinix. “With high levels of demand and a strong record of execution in completing our 2006 planned expansions, we continue to focus on the expansive opportunity ahead of us.”
Equinix added 63 new customers in the quarter including The Brookings Institution, Hanley Wood, Swiss Re Financial, United Stationers, VeriSign and VSNL Singapore.