Earnings Roundup: DFT, Internap, Emerson
August 5th, 2010 By: John Rath
Here’s a roundup of some of this week’s quarterly financial reports from the data center industry:
DuPont Fabros Raises Revenue Guidance: Data center REIT DuPont Fabros Technology (DFT) raised its revenue guidance, the company said this week. The company now projects funds from operations (FFO) in a range of $1.30 to $1.40 per share for 2010, compared to the previous range of $1.25 to $1.35. FFO is the key financial measurement for real estate investment trusts. The increase was driven by decisions by several customers to accelerate their deployment schedule in data center space. Since rent payments begine when a lease is commenced, the early installations will mean additional revenue in the second quarter.
Internap reports second quarter 2010 results. Internap (INAP) announced financial results for the second quarter of 2010. CEO Eric Cooney noted that this was the fourth consecutive quarter of margin expansion for the company’s data center business. In July Internap opened new or expanded data centers in Silicon Valley, Seattle and Houston, bringing the total company-controlled data center space up 24 percent to 137,500 square feet. “The addition of 26,500 net sellable square feet of company-controlled data center in July, and early traction from recent product launches in both the IP and Data center business segments, bodes well for the company’s future revenue growth,” said Cooney.
Emerson reports third quarter 2010 results. Emerson Revenue totaled $60.5 million, compared to $64.4 million in the second quarter of 2009. Segment profit was $29.3 million while segment margin reached the highest level in more than two years at 48.3 percent. (EMR), a major player int he market for data center equipment, announced net sales for the third quarter ended June 30, 2010 were $5.6 billion, an increase of 11 percent from the prior year quarter. “Free cash flow remains a priority and we expect a record level of free cash flow and trade working capital as a percent of sales this year,” said David Farr, Chairman and CEO of EmersonWe are putting that cash to work to strengthen our core businesses and invest for future growth, both internally and with strong strategic acquisitions.” Emerson expects earnings per share to be in the range of $2.60 to $2.70, not including any impact from the acquisition of Chloride Group or any potential divestitures of LANDesk or North American Motors and controls business.