Roundup: SGI, Terremark, Limelight

A roundup of news from SGI/Rackable (SGI), Terremark Worldwide (TMRK) and Limelight Networks (LLNW).

John Rath

August 7, 2009

2 Min Read
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Here’s a roundup of more of this week’s data center industry news headlines:

  • SGI Offers CloudRack for the HPC Market: SGI (formerly Rackable) announced the availability of CloudRack X2 (pictured above), a new generation of scalable workgroup clusters. The new CloudRack powers 216 cores in a square foot enclosure and is targeted at the HPC (high performance computing), graphics, and internet applications user. The new system also now supports high-performance processors and high-speed interconnects, including 40 Gb/sec InfiniBand. The product is geared toward build-to-order optimization, allowing hot-swappable components, Intel and AMD processors, and 14U worth of nine CloudRack trays. SGI also said it expects GAAP revenue for the second quarter of 2009 to be around $55 Million to $60 million, compared to $75.8 million in the second quarter 2008. Second quarter 2009 and fiscal year end results are expected to be filed on August 10th.

  • Terremark reports 1st quarter fiscal year 2010 results. Terremark Worldwide reported first quarter results for its fiscal 2010 Thursday, with figures in-line with previously announced guidance. Total revenues were $65.8 million and EBITDA, as adjusted, were $16.7 million. Income from operations for the first quarter was $5.7 million, representing a 52% year-over-year increase. Utilization of built-out colocation space was 60.5% as of June 30, 2009 and 46 new customers were added, for a total of 1,114. First quarter business highlights include borrowing $400 million through a private debt placement and $29.0 million booked of new annual contract value. Terremark is expecting revenues to range from $68 million to $70 million in the second quarter of 2010.

  • Limelight Reports Second Quarter 2009 Results. Content Delivery Network (CDN) provider Limelight Networks (LLNW) reported 2nd quarter revenue of $32.3 million, up 7% from $30.3 million in the same period in 2008. They ended the quarter with no bank debt and approximately $164 million in cash and short-term marketable securities. Cash from operations generated $7.5 million. Limelight anticipates 3rd quarter revenue in the range of $32 million to $33 million. In the second quarter 2009 Limelight acquired Kiptronic, a mobility and monetization solutions company. The Telecom Ramblings blog has an interesting post on the CDN market and recent news from Akamai, Level3 and Internap.

  • Washington state data center imminent. The previously reported data center for the state of Washington, that was challenged by legislators is set to begin construction. Two state legislators responded to the $300 million sale of bonds to fund the construction with a request to further analyze a cloud computing solution instead of building a data center. The Olympian reported Thursday that bonds for the project are due this week and a groundbreaking has been scheduled for August 20th.

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