8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): May 13, 2003

EQUINIX, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	000-31293	77-0487526
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

301 Velocity Way, Fifth Floor

Foster City, CA 94404

(650) 513-7000

(Addresses, including zip code, and telephone numbers,

including area code, of principal executive offices)

ITEM 7.    FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(c) EXHIBITS.

99.1 Press Release of Equinix, Inc. dated May 13, 2003, furnished in accordance with Item 12 of this Current Report on Form 8-K.

ITEM 9.    REGULATION FD DISCLOSURE

The information contained in this Item 9 of this Current Report is being furnished pursuant to “Item 12. Results of Operations and Financial Condition” in accordance with SEC Release No. 33-8216.

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

On May 13, 2003, the Company issued a press release announcing its financial results for the quarter ended March 31, 2003. A copy of the press release is attached as Exhibit 99.1. On May 13, 2003, in connection with the issuance of the press release, the Company will hold a conference call to discuss the press release.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		EQUINIX, INC.
DATE:	May 13, 2003	By:	/s/    RENEE F. LANAM
			Renee F. Lanam
			Chief Financial Officer

INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Text of Press Release dated May 13, 2003.

EX-99.1

Exhibit 99.1

Equinix Investor Relations Contact:	Equinix Media Contact:
Jason Starr	David Fonkalsrud
Equinix, Inc.	K/F Communications, Inc.
(650) 513-7402	(415) 255-6506
jstarr@equinix.com	dave@kfcomm.com

EQUINIX REPORTS EARNINGS FOR FIRST QUARTER 2003;

COMPANY EXCEEDS GUIDANCE

• Increases revenues by 26% over same quarter 2002

• Accelerates cash flow positive from operations projection to end of third quarter 2003

• Announces definitive agreements for an additional $10 million in funding from Crosslink Capital

• Gains 59 new customers including Adobe and Fidelity with strong bookings from installed base including Electronic Arts, Fujitsu, Google, IBM, and Sony

Foster City, CA—May 13, 2003—Equinix, Inc. (Nasdaq: EQIX), the leading provider of network-neutral data centers and Internet exchange services, today reported its quarterly results for the period ended March 31, 2003.

Revenues on a combined company basis, which now includes the acquired operations of Pihana Pacific and i-STT, were $25.4 million for the first quarter ended March 31, a 26% increase over the same quarter last year and a 35% increase over fourth quarter of 2002. Of the total company’s available cabinets, 31% were billing as of March 31. Cost of revenues, excluding non-cash depreciation, amortization and stock-based compensation, were $17.0 million for the first quarter. Selling, general and administrative expenses, excluding non-cash depreciation, amortization and stock-based compensation, were $11.5 million for the first quarter. Net loss for the first quarter was $25.6 million, or basic net loss per share of $3.00.

On a pre-acquisition Equinix basis, which excludes the Pihana Pacific and i-STT operations, recurring revenues were $19.3 million. This represents a 17% increase over the same quarter last year and a 10% increase over fourth quarter of 2002. Cost of revenues were $12.2 million, excluding non-cash depreciation, amortization and stock-based compensation, a 15% improvement over same quarter last year and a 4% improvement sequentially. Selling, general and administrative expenses were $7.3 million, excluding non-cash depreciation, amortization and stock-based compensation, a slight improvement over same quarter last year and a 9% improvement sequentially.

For the combined companies, cash used in operations for the quarter was approximately $7.9 million, which excludes one-time merger, financing and restructuring costs. Cash used in operations, including all one-time charges, was $19.6 million. The company also announced the acceleration of the projection of cash flow positive from operations from the previous guidance of year-end 2003 to now take place by the end of third quarter of 2003. Cash flow generated from investing activities was $1.6 million, primarily related to the release of restricted cash to fund a bond interest payment, partially offset by capital expenditures of $0.3 million. Cash used in financing activities was $2.4 million, primarily related to costs attributed to the repayment of certain debt facilities. As of March 31, 2003, the company’s cash balance was $21.0 million, which excludes the planned $10 million investment from Crosslink Capital.

Equinix added 59 new customers in the first quarter including Adobe, Euronext.liffe, Fidelity, Kontiki, and Rogers Cable. The company also received a record number of additional orders in the quarter from more than 165 of Equinix’s existing customers including Accenture, Electronic Arts, Fujitsu, Google, Hotwire, IBM, Kyocera, Level 3, PayPal, Sony, and Yahoo!

“This was a solid first quarter, demonstrating great momentum into 2003. The quality of new bookings, the rise in revenues from our margin rich exchange services, and progress in our Asia integration efforts has made it possible to accelerate our timeline to an operating cash flow positive position,” said Peter Van Camp, CEO of Equinix.

Company Developments

On April 29, Equinix signed definitive agreements for an investment of $10 million dollars from Crosslink Capital. The transaction is expected to close in June. The company intends to retain the proceeds from this financing on its balance sheet for greater operating flexibility.

Extending the value of its exchange services business model, Equinix also announced two new services in the US and Asia, including:

• Equinix Direct, a multi-network management service that allows enterprises and content companies to easily manage multiple network providers

• Equinix GigE Exchange extended into Asia, a service that allows ISPs and content companies to peer or exchange traffic. This service introduction builds on the success and market leadership Equinix has attained in the US

Business Outlook

For the second quarter 2003, the company expects revenue to be in the range of $27 to $28 million and cash used in operations will be less than $5 million. Cash used in investing activities, consisting primarily of capital expenditures, will be approximately $2 million. Cash flow generated from financing activities will be in excess of $5 million, including $10 million of cash expected from the planned Crosslink investment, which will be offset by costs attributed to the repayment of certain debt facilities. As of June 30, 2003, total cash is expected to be greater than $22 million.

Full year revenues are projected to be in the range of $112 to $118 million and cash used in operations will be less than $23 million. Cash used in investing activities, consisting primarily of capital expenditures, will be approximately $4 million. Cash flow generated from financing activities, including $10 million of cash expected from the Crosslink investment, offset by costs attributed to the repayment of certain debt facilities, will be greater than $1 million. Total cash as of December 31, 2003 is expected to be in the range of $18 to $20 million.

About Equinix

Equinix is the leading global provider of network-neutral data centers and Internet exchange services for enterprises, content companies and network services providers. Through the company’s 15 Internet Business Exchange^™ (IBX^®) centers in six countries, customers can directly interconnect with the providers that serve more than 90% of the world’s Internet networks and users for their critical peering, transit and traffic exchange requirements. These interconnection points facilitate the highest performance and growth of the Internet by serving as neutral and open marketplaces for Internet infrastructure services, allowing customers to expand their businesses while reducing costs.

Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.

# # #

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the failure of the Crosslink transaction to close, the challenges of operating IBX centers and developing, deploying and delivering Equinix services; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay outstanding indebtedness; the loss or decline in business from our key customers and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share detail)

	Three Months Ended
	March 31, 2003			March 31, 2002
	(unaudited)
Revenues	$	25,435		$	20,158
Cost of revenues		30,619			25,426
Gross profit (loss)		(5,184	)		(5,268	)
Operating expenses:
Sales and marketing		4,703			4,170
General and administrative		10,924			6,741
Total operating expenses		15,627			10,911
Loss from operations (1)		(20,811	)		(16,179	)
Interest and other income (expense):
Interest income		70			493
Interest expense and other		(4,812	)		(9,670	)
Gain on debt extinguishments		—			11,662
Total interest and other, net		(4,742	)		2,485
Net loss	$	(25,553	)	$	(13,694	)
Basic and diluted net loss per share	$	(3.00	)	$	(5.16	)
Shares used in computing basic and diluted net loss per share		8,512			2,656
(1)  Loss from operations includes the following non-cash expenses:
Depreciation and amortization expense:
Cost of revenues	$	13,549		$	10,925
Sales and marketing		525			—
General and administrative		2,705			1,134
		16,779			12,059
Stock-based compensation expense:
Cost of revenues		40			91
Sales and marketing		113			433
General and administrative		805			2,057
		958			2,581
Total non-cash expenses in loss from operations	$	17,737		$	14,640

EQUINIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 31, 2003			December 31, 2002
	(unaudited)
Assets
Cash and cash equivalents	$	20,978		$	41,216
Restricted cash		2,418			4,407
Accounts receivable, net		10,675			9,152
Property and equipment, net		373,936			390,048
Intangible assets, net		24,627			24,981
Other assets		18,852			22,199
Total assets	$	451,486		$	492,003
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses (1)	$	13,937		$	20,347
Accrued restructuring charges		4,259			11,528
Accrued interest payable		2,371			2,311
Debt facilities and capital lease obligations		6,805			9,224
Credit facility		91,510			91,510
Senior notes		28,986			28,908
Convertible secured note		25,602			25,354
Other liabilities		18,931			18,627
Total liabilities		192,401			207,809
Preferred stock		2			2
Common stock		9			8
Additional paid-in capital		638,134			638,065
Deferred stock-based compensation		(1,844	)		(2,865	)
Accumulated other comprehensive income (loss)		(30	)		617
Accumulated deficit		(377,186	)		(351,633	)
Total stockholders' equity		259,085			284,194
Total liabilities and stockholders' equity	$	451,486		$	492,003

(1) Accounts payable and accrued expenses include $720,000 and $4,488,000 of accrued merger and financing costs as of March 31, 2003 and December 31, 2002, respectively.

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended
	March 31, 2003			March 31, 2002
	(unaudited)
Cash flows from operating activities:
Net loss	$	(25,553	)	$	(13,694	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		16,779			12,059
Amortization of stock-based compensation		958			2,581
Gain on debt extinguishment		—			(11,662	)
Non-cash interest expense		2,086			1,566
Other reconciling items		987			1,173
Changes in operating assets and liabilities:
Accounts receivable		(1,677	)		(1,640	)
Accounts payable and accrued expenses		(2,642	)		(105	)
Accrued restructuring charges		(7,919	)		102
Accrued merger and financing costs		(3,768	)		—
Accrued interest payable		(990	)		6,201
Other assets and liabilities		2,181			1,374
Net cash used in operating activities		(19,558	)		(2,045	)
Cash flows from investing activities:
Purchases of property and equipment		(346	)		(2,836	)
Payments of accrued construction in progress		—			(24,000	)
Other investing activities		1,989			5,258
Net cash provided by (used in) investing activities		1,643			(21,578	)
Cash flows from financing activities:
Repayment of debt facilities and capital lease obligations		(2,518	)		(1,717	)
Other financing activities		159			336
Net cash used in financing activities		(2,359	)		(1,381	)
Effect of foreign currency exchange rates on cash and cash equivalents		36			(74	)
Net decrease in cash and cash equivalents		(20,238	)		(25,078	)
Cash and cash equivalents at beginning of period		41,216			58,831
Cash and cash equivalents at end of period	$	20,978		$	33,753