Earnings Roundup: Equinix, Savvis, Akamai, Active Power
October 28th, 2010 By: John Rath
Here’s a roundup of some of this week’s quarterly financial reports from the data center industry:
Equinix reports third quarter results. Equinix (EQIX) reported quarterly results for the quarter ending September 30, 2010. Reported revenues in the third quarter were $330.3 million, or a 12 percent increase, which was the high end of the range given earlier in the month when the company announced revenue projections would be lower. Equnix spent $143.9 million in capital expenditures, while it had $715.4 million in cash and cash equivalents. Net income was $11.2 for the quarter and adjusted EBITDA was $146.5 million, an increase of 11 percent over the previous quarter. After the revised guidance in early October Equinix stock plunged under $75 a share, but has since gradually climbed back up and gained more than $6 on Wednesday, closing at $83. A positive outlook for 2011 was delivered with Equinix expecting revenues greater than $1.5 billion for the year.
Savvis reports third quarter results. Savvis (SVVS) reported its third quarter 2010 financial results Wednesday with revenue of $214.9 million, compared to $213.2 million in the third quarter of 2009. “The company-wide changes and improvements we have made over the past year, specifically in sales and marketing, are now flowing through to our results. Based on the strength we continue to see in bookings, installs and renewals, we expect to continue on this path throughout 2011,” said Savvis CEO Jim Ousley. Adjusted EBITDA was $59.7 million for the third quarter 2010, up 9 percent from $54.7 million in the second quarter. Cash capital expenditures were $56.6 million and Savvis closed the quarter with $88 million in cash. Revenue from colocation was up slightly from the second quarter, with managed services revenue making a larger jump to account for 46 percent of revenue with $81.5 million.
Akamai reports third quarter results. Akamai (AKAM) reported financial results for the third quarter ended September 30, 2010. Revenue grew 3 percent from last quarter at $253.6 million and net income was $39.7 million. “Akamai performed very well in the third quarter, and we believe we have solid momentum heading into our seasonally strongest quarter of the year,” said Paul Sagan, CEO of Akamai. “We continued to make key investments to support our customers’ online businesses and successfully meet the growing demand we have been seeing for our portfolio of cloud-based services.” Akamai stock gained almost $2 during the day Wednesday and another $1.91 in after-hours trading.
Active Power reports third quarter results. Active Power (ACPW) announced results for its third quarter ended September 30, 2010. Revenues improved 15 percent from last quarter to $18.5 million, which was a 116 percent increase from the third quarter of 2009. Active Power achieved the first quarterly net profit in its 18 year history, recording a net profit of $55,000 during the third quarter. During the third quarter Active Power shipped 97 flywheels in UPS systems at an average selling price of $88,000, compared to 56 shipped during the third quarter of 2009. They also completed a new $12.5 million revolving credit line to help finance working capital and business growth. “This quarter was highlighted by a substantial increase in revenues from our data center infrastructure solutions and a number of large repeat orders from our data center and technology-centric customers,” said Jim Clishem, president and CEO of Active Power. “Quoting activity and interest in our products continues to grow as companies are increasingly focused on solutions that reduce energy costs and floor space requirements, while also improving reliability.”