REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 25, 2012--Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today reported quarterly results for the quarter ended June 30, 2012. The Company uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.

Revenues were $466.3 million for the second quarter, a 3% increase over the previous quarter and an 18% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $442.6 million for the second quarter, a 3% increase over the previous quarter and an 18% increase over the same quarter last year. Non-recurring revenues were $23.7 million in the quarter.

“Equinix delivered another strong quarter of financial results, which positions us well to meet our 2012 objectives,” said Steve Smith, president and CEO of Equinix. “Our ability to optimize data center capacity and operate efficiently as we expand our global footprint to meet customer demand, reinforces our leadership position and supports our long-term growth opportunity.”

Cost of revenues were $233.2 million for the second quarter, a 4% increase over the previous quarter and an 8% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $87.0 million, which we refer to as cash cost of revenues, were $146.2 million for the second quarter, a 4% increase from the previous quarter and a 6% increase over the same quarter last year. Gross margins for the quarter were 50%, unchanged from the previous quarter and up from 45% for the same quarter last year. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 69%, unchanged from the previous quarter and up from 65% for the same quarter last year.

Selling, general and administrative expenses were $128.5 million for the second quarter, a 3% increase over the previous quarter and a 25% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $30.5 million, which we refer to as cash selling, general and administrative expenses, were $98.0 million for the second quarter, a 2% increase over the previous quarter and a 29% increase over the same quarter last year.

Interest expense was $46.8 million for the second quarter, an 11% decrease from the previous quarter, primarily attributed to the settlement of the $250.0 million 2.50% convertible subordinated notes in April 2012, and a 24% increase over the same quarter last year, primarily attributed to the $750.0 million 7.00% senior notes offering in July 2011. The Company recorded income tax expense of $17.4 million for the second quarter and income tax expense of $8.1 million in the same quarter last year.

Net income attributable to Equinix for the second quarter was $36.4 million. This represents a basic net income per share attributable to Equinix of $0.76 and a diluted net income per share attributable to Equinix of $0.73 based on a weighted average share count of 48.0 million and 52.4 million, respectively, for the second quarter of 2012.

Income from operations was $102.7 million for the second quarter, a 2% increase from the previous quarter and a 37% increase over the same quarter last year. Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs, for the second quarter was $222.1 million, a 3% increase over the previous quarter and a 22% increase over the same quarter last year.

Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the second quarter, were $196.5 million, of which $159.0 million was attributed to expansion capital expenditures and $37.5 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $194.8 million for the second quarter as compared to $126.0 million in the previous quarter and $140.3 million for the same quarter last year. Cash provided by investing activities was $93.9 million in the second quarter as compared to cash provided by investing activities of $269.4 million in the previous quarter and cash used in investing activities of $209.7 million for the same quarter last year. Cash used in financing activities was $264.7 million for the second quarter, primarily attributed to the settlement of the $250.0 million 2.50% convertible subordinated notes in April 2012.

As of June 30, 2012, the Company’s cash, cash equivalents and investments were $823.0 million, as compared to $1,083.3 million as of March 31, 2012.

In July 2012, the Company completed the acquisitions of ancotel GmbH, a data center provider headquartered in Frankfurt, Germany, for cash consideration of approximately $85.7 million and Asia Tone Limited, a data center provider headquartered in Hong Kong, for cash consideration of approximately $230.5 million. In July 2012, the Company drew down and used the proceeds from its $200.0 million senior secured term loan facility, which was completed in June 2012, to prepay and terminate outstanding term loan facilities of the Company’s Asia-Pacific subsidiaries.

For the third quarter of 2012, the Company expects revenues to be in the range of $492.0 to $498.0 million, including $13.0 to $15.0 million of revenue attributed to the Asia Tone and ancotel acquisitions which closed in July. The third quarter revenue includes approximately $4.0 million of negative foreign currency headwinds when compared to the exchange rates used in the second quarter. Cash gross margins are expected to range between 67% and 68%. Cash selling, general and administrative expenses are expected to range between $110.0 and $115.0 million. Adjusted EBITDA is expected to range between $220.0 and $222.0 million, including $4.0 to $6.0 million of adjusted EBITDA attributed to the Asia Tone and ancotel acquisitions, and also includes a $7.0 million increase in utilities expense due to higher seasonal rates and $2.0 million of negative currency headwinds. Capital expenditures are expected to be approximately $240.0 to $260.0 million, comprised of approximately $30.0 million of ongoing capital expenditures and $210.0 to $230.0 million of expansion capital expenditures.

For the full year of 2012, total revenues are expected to be greater than $1,920.0 million, including approximately $30.0 million of revenue attributed to the Asia Tone and ancotel acquisitions, and also includes approximately $18.0 million of negative foreign currency headwinds compared to our previous annual guidance rates. Total year cash gross margins are expected to approximate 68%. Cash selling, general and administrative expenses are expected to range between $420.0 and $430.0 million. Adjusted EBITDA for the year is expected to be greater than $880.0 million, including approximately $10.0 million of adjusted EBITDA attributed to the Asia Tone and ancotel acquisitions, and also includes $8.0 million of negative currency headwinds. Capital expenditures for 2012 are expected to be in the range of $740.0 to $800.0 million, comprised of approximately $135.0 million of ongoing capital expenditures and $605.0 to $665.0 million for expansion capital expenditures.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, July 25, 2012, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live Webcast of the call will be available on the Equinix investors website located at www.equinix.com/investors. To hear the conference call live, please dial 210-234-8004 (domestic and international) and reference the passcode (EQIX). A presentation to accompany the call as well as the Company’s Non-Financial Metrics tracking sheet, will also be available on the website.

A replay of the call will be available beginning on Wednesday, July 25, 2012, at 7:30 p.m. (ET) through August 25, 2012, by dialing 203-369-3024 (domestic and international) and reference the passcode (2012). In addition, the webcast will be available on the Investor Relations section of the Company’s website over the same time period. No password is required for the replay or the webcast.

Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 900 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://www.equinix.com.

Equinix provides all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain items that it believes are not good indicators of the Company's current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges and acquisition costs. Legislative and regulatory requirements encourage use of and emphasis on GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. Equinix excludes these items in order for Equinix's lenders, investors, and industry analysts who review and report on the Company, to better evaluate the Company's operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of our IBX centers and do not reflect our current or future cash spending levels to support our business. Our IBX centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of our IBX centers do not recur and future capital expenditures remain minor relative to our initial investment. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX centers, and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix excludes amortization expense related to certain intangible assets, as it represents a cost that may not recur and is not a good indicator of the Company's current or future operating performance. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix believes are not meaningful in evaluating the Company's current operations. Equinix excludes stock-based compensation expense as it primarily represents expense attributed to equity awards that have no current or future cash obligations. As such, we, and many investors and analysts, exclude this stock-based compensation expense when assessing the cash generating performance of our operations. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to the Company's decision to exit leases for excess space adjacent to several of our IBX centers, which we did not intend to build out, or our decision to reverse such restructuring charges or severance charges related to the Switch and Data acquisition. Equinix excludes acquisition costs from its non-GAAP financial measures. The acquisition costs relate to costs the Company incurs in connection with business combinations. Management believes such items as restructuring charges and acquisition costs are non-core transactions; however, these types of costs will or may occur in future periods.

Our management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. However, we have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our operating results in a manner that focuses on what management believes to be our core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note, however, that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. In addition, whenever Equinix uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

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 challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or 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 and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.


EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)


			Three Months Ended									Six Months Ended
			June 30,			March 31,			June 30,			June 30,			June 30,
			2012			2012			2011			2012			2011

Recurring revenues			$	442,576		$	429,621		$	376,528		$	872,197		$	720,437
Non-recurring revenues				23,688			22,579			18,372			46,267			37,492
	Revenues			466,264			452,200			394,900			918,464			757,929

Cost of revenues				233,192			225,079			215,572			458,271			410,148
		Gross profit		233,072			227,121			179,328			460,193			347,781

Operating expenses:
	Sales and marketing			47,764			46,571			37,063			94,335			70,699
	General and administrative			80,723			78,425			65,681			159,148			128,282
	Restructuring charges			-			-			103			-			599
	Acquisition costs			1,919			1,027			1,615			2,946			2,030
		Total operating expenses		130,406			126,023			104,462			256,429			201,610

Income from operations				102,666			101,098			74,866			203,764			146,171

Interest and other income (expense):
	Interest income			963			691			632			1,654			847
	Interest expense			(46,787	)		(52,818	)		(37,677	)		(99,605	)		(75,038	)
	Other income (expense)			(1,844	)		(154	)		1,021			(1,998	)		3,132
		Total interest and other, net		(47,668	)		(52,281	)		(36,024	)		(99,949	)		(71,059	)

Income before income taxes				54,998			48,817			38,842			103,815			75,112

	Income tax expense			(17,358	)		(14,006	)		(8,109	)		(31,364	)		(19,234	)

Net income				37,640			34,811			30,733			72,451			55,878

Net income attributable to redeemable non-controlling interests				(1,193	)		(288	)		(3	)		(1,481	)		(3	)

Net income attributable to Equinix			$	36,447		$	34,523		$	30,730		$	70,970		$	55,875

Net income per share attributable to Equinix:

	Basic net income per share (1)		$	0.76		$	0.74		$	0.65		$	1.49		$	1.20

	Diluted net income per share (1)		$	0.73		$	0.71		$	0.64		$	1.44		$	1.18

	Shares used in computing basic net income per share			48,016			46,955			46,924			47,485			46,688

	Shares used in computing diluted net income per share			52,351			51,061			50,664			51,633			50,454


(1)	The net income attributable to Equinix used in the computation of basic and diluted net income per share
	attributable to Equinix is presented below:

	Net income		$	37,640		$	34,811		$	30,733		$	72,451		$	55,878
	Net income attributable to non-controlling interests			(1,193	)		(288	)		(3	)		(1,481	)		(3	)
	Adjustments attributable to redemption value of non-controlling interests			-			209			-			-			-
		Net income attributable to Equinix, basic		36,447			34,732			30,730			70,970			55,875
	Interest on convertible debt			1,678			1,699			1,746			3,377			3,485
		Net income attributable to Equinix, diluted	$	38,125		$	36,431		$	32,476		$	74,347		$	59,360


EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

Assets			June 30,			December 31,
			2012			2011

Cash and cash equivalents			$	654,096		$	278,823
Short-term investments				115,465			635,721
Accounts receivable, net				169,812			139,057
Other current assets				70,219			182,156
	Total current assets			1,009,592			1,235,757
Long-term investments				53,460			161,801
Property, plant and equipment, net				3,525,839			3,225,912
Goodwill				863,187			866,495
Intangible assets, net				138,199			148,635
Other assets				134,411			146,724
	Total assets		$	5,724,688		$	5,785,324

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses			$	224,989		$	229,043
Accrued property and equipment				119,703			93,224
Current portion of capital lease and other financing obligations				12,978			11,542
Current portion of loans payable				72,791			87,440
Current portion of convertible debt				-			246,315
Other current liabilities				60,698			57,690
	Total current liabilities			491,159			725,254
Capital lease and other financing obligations, less current portion				464,622			390,269
Loans payable, less current portion				141,504			168,795
Senior notes				1,500,000			1,500,000
Convertible debt				701,578			694,769
Other liabilities				282,350			286,424
	Total liabilities			3,581,213			3,765,511

Redeemable non-controlling interests				75,854			67,601

Common stock				49			48
Additional paid-in capital				2,444,640			2,437,623
Treasury stock				(37,166	)		(86,666	)
Accumulated other comprehensive loss				(155,777	)		(143,698	)
Accumulated deficit				(184,125	)		(255,095	)
	Total stockholders' equity			2,067,621			1,952,212

	Total liabilities, redeemable non-controlling interests and stockholders' equity		$	5,724,688		$	5,785,324



Ending headcount by geographic region is as follows:

	Americas headcount			1,784			1,763
	EMEA headcount			644			570
	Asia-Pacific headcount			420			376
		Total headcount		2,848			2,709


EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)


					Three Months Ended									Six Months Ended
					June 30,			March 31,			June 30,			June 30,			June 30,
					2012			2012			2011			2012			2011

Cash flows from operating activities:
	Net income				$	37,640		$	34,811		$	30,733		$	72,451		$	55,878
	Adjustments to reconcile net income to net cash
	provided by operating activities:
		Depreciation, amortization and accretion				96,944			93,922			86,426			190,866			165,951
		Stock-based compensation				20,549			19,103			18,318			39,652			33,853
		Debt issuance costs and debt discount				4,902			8,107			8,325			13,009			15,609
		Restructuring charges				-			-			103			-			599
		Other reconciling items				984			2,857			3,074			3,841			4,637
		Changes in operating assets and liabilities:
			Accounts receivable			(14,864	)		(19,677	)		(19,409	)		(34,541	)		(16,310	)
			Deferred tax assets, net			9,531			5,370			(2,507	)		14,901			3,133
			Accounts payable and accrued expenses			35,544			(33,737	)		4,082			1,807			(9,524	)
			Other assets and liabilities			3,552			15,237			11,203			18,789			4,292
				Net cash provided by operating activities		194,782			125,993			140,348			320,775			258,118
Cash flows from investing activities:
	Purchases, sales and maturities of investments, net					279,621			346,366			30,979			625,987			28,794
	Purchase of ALOG, less cash acquired					-			-			(41,954	)		-			(41,954	)
	Purchases of real estate					-			-			(9,042	)		-			(23,993	)
	Purchases of other property, plant and equipment					(196,484	)		(145,490	)		(188,875	)		(341,974	)		(363,990	)
	Other investing activities					10,743			68,557			(845	)		79,300			(94,983	)
				Net cash provided by (used in) investing activities		93,880			269,433			(209,737	)		363,313			(496,126	)
Cash flows from financing activities:
	Purchases of treasury stock					-			(13,364	)		-			(13,364	)		-
	Proceeds from employee equity awards					6,013			30,460			8,929			36,473			24,597
	Proceeds from loans payable					-			8,909			55,264			8,909			77,917
	Repayment of capital lease and other financing obligations					(3,032	)		(2,826	)		(2,355	)		(5,858	)		(4,323	)
	Repayment of mortgage and loans payable					(10,170	)		(67,129	)		-			(77,299	)		(10,102	)
	Repayment of convertible debt					(250,007	)		-			-			(250,007	)		-
	Other financing activities					(7,520	)		-			-			(7,520	)		(125	)
				Net cash provided by (used in) financing activities		(264,716	)		(43,950	)		61,838			(308,666	)		87,964
Effect of foreign currency exchange rates on cash and cash equivalents						(2,794	)		2,645			957			(149	)		5,075
Net increase (decrease) in cash and cash equivalents						21,152			354,121			(6,594	)		375,273			(144,969	)
Cash and cash equivalents at beginning of period						632,944			278,823			304,466			278,823			442,841
Cash and cash equivalents at end of period					$	654,096		$	632,944		$	297,872		$	654,096		$	297,872

	Supplemental cash flow information:
		Cash paid for taxes			$	5,031		$	1,734		$	6,651		$	6,765		$	6,825
		Cash paid for interest			$	28,965		$	63,336		$	23,725		$	92,301		$	60,462

Free cash flow (1)					$	9,041		$	49,060		$	(100,368	)	$	58,101		$	(266,802	)

Adjusted free cash flow (2)					$	9,041		$	49,060		$	(49,372	)	$	58,101		$	(200,855	)


(1)	We define free cash flow as net cash provided by operating activities plus net cash provided by (used in) investing activities
	(excluding the net purchases, sales and maturities of investments) as presented below:

	Net cash provided by operating activities as presented above				$	194,782		$	125,993		$	140,348		$	320,775		$	258,118
	Net cash provided by (used in) investing activities as presented above					93,880			269,433			(209,737	)		363,313			(496,126	)
	Purchases, sales and maturities of investments, net					(279,621	)		(346,366	)		(30,979	)		(625,987	)		(28,794	)
		Free cash flow (negative free cash flow)			$	9,041		$	49,060		$	(100,368	)	$	58,101		$	(266,802	)

(2)	We define adjusted free cash flow as free cash flow (as defined above) excluding any purchases or sales of real estate and acquisitions as presented below:

	Free cash flow (as defined above)				$	9,041		$	49,060		$	(100,368	)	$	58,101		$	(266,802	)
	Less purchase of ALOG, less cash acquired					-			-			41,954			-			41,954
	Less purchases of real estate					-			-			9,042			-			23,993
		Adjusted free cash flow (negative adjusted free cash flow)			$	9,041		$	49,060		$	(49,372	)	$	58,101		$	(200,855	)


EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION
(in thousands)
(unaudited)


					Three Months Ended									Six Months Ended
					June 30,			March 31,			June 30,			June 30,			June 30,
						2012			2012			2011			2012			2011

	Recurring revenues				$	442,576		$	429,621		$	376,528		$	872,197		$	720,437
	Non-recurring revenues					23,688			22,579			18,372			46,267			37,492
		Revenues (1)				466,264			452,200			394,900			918,464			757,929

	Cash cost of revenues (2)					146,233			140,586			137,558			286,819			260,189
				Cash gross profit (3)		320,031			311,614			257,342			631,645			497,740

	Cash operating expenses (4):
		Cash sales and marketing expenses (5)				38,756			38,186			29,261			76,942			56,365
		Cash general and administrative expenses (6)				59,197			58,278			46,753			117,475			92,771
				Total cash operating expenses (7)		97,953			96,464			76,014			194,417			149,136

	Adjusted EBITDA (8)				$	222,078		$	215,150		$	181,328		$	437,228		$	348,604

	Cash gross margins (9)					69	%		69	%		65	%		69	%		66	%

	Adjusted EBITDA margins (10)					48	%		48	%		46	%		48	%		46	%

	Adjusted EBITDA flow-through rate (11)					49	%		81	%		44	%		68	%		65	%


(1)		The geographic split of our revenues on a services basis is presented below:

		Americas Revenues:

		Colocation			$	215,288		$	209,708		$	187,840		$	424,996		$	364,036
		Interconnection				56,273			54,646			48,164			110,919			94,086
		Managed infrastructure				12,597			13,970			8,706			26,567			9,473
		Rental				445			439			489			884			993
			Recurring revenues			284,603			278,763			245,199			563,366			468,588
		Non-recurring revenues				12,533			9,321			8,690			21,854			17,828
			Revenues			297,136			288,084			253,889			585,220			486,416

		EMEA Revenues:

		Colocation				87,820			83,951			74,645			171,771			142,845
		Interconnection				4,192			3,824			3,203			8,016			6,015
		Managed infrastructure				3,262			3,414			3,481			6,676			6,679
		Rental				336			344			177			680			295
			Recurring revenues			95,610			91,533			81,506			187,143			155,834
		Non-recurring revenues				7,087			9,803			7,105			16,890			14,816
			Revenues			102,697			101,336			88,611			204,033			170,650

		Asia-Pacific Revenues:

		Colocation				49,651			47,117			39,101			96,768			75,440
		Interconnection				7,794			7,320			5,818			15,114			11,159
		Managed infrastructure				4,918			4,888			4,904			9,806			9,416
			Recurring revenues			62,363			59,325			49,823			121,688			96,015
		Non-recurring revenues				4,068			3,455			2,577			7,523			4,848
			Revenues			66,431			62,780			52,400			129,211			100,863

		Worldwide Revenues:

		Colocation				352,759			340,776			301,586			693,535			582,321
		Interconnection				68,259			65,790			57,185			134,049			111,260
		Managed infrastructure				20,777			22,272			17,091			43,049			25,568
		Rental				781			783			666			1,564			1,288
			Recurring revenues			442,576			429,621			376,528			872,197			720,437
		Non-recurring revenues				23,688			22,579			18,372			46,267			37,492
			Revenues		$	466,264		$	452,200		$	394,900		$	918,464		$	757,929

(2)		We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based
		compensation as presented below:

		Cost of revenues			$	233,192		$	225,079		$	215,572		$	458,271		$	410,148
		Depreciation, amortization and accretion expense				(85,320	)		(83,098	)		(76,515	)		(168,418	)		(147,115	)
		Stock-based compensation expense				(1,639	)		(1,395	)		(1,499	)		(3,034	)		(2,844	)
			Cash cost of revenues		$	146,233		$	140,586		$	137,558		$	286,819		$	260,189

		The geographic split of our cash cost of revenues is presented below:

		Americas cash cost of revenues			$	85,687		$	83,307		$	81,886		$	168,994		$	152,096
		EMEA cash cost of revenues				37,392			35,353			36,217			72,745			70,708
		Asia-Pacific cash cost of revenues				23,154			21,926			19,455			45,080			37,385
			Cash cost of revenues		$	146,233		$	140,586		$	137,558		$	286,819		$	260,189

(3)		We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)		We define cash operating expenses as operating expenses less depreciation, amortization, stock-based
		compensation, restructuring charges and acquisition costs. We also refer to cash operating expenses as
		cash selling, general and administrative expenses or "cash SG&A".

(5)		We define cash sales and marketing expenses as sales and marketing expenses less depreciation,
		amortization and stock-based compensation as presented below:

		Sales and marketing expenses			$	47,764		$	46,571		$	37,063		$	94,335		$	70,699
		Depreciation and amortization expense				(4,333	)		(4,350	)		(4,192	)		(8,683	)		(7,858	)
		Stock-based compensation expense				(4,675	)		(4,035	)		(3,610	)		(8,710	)		(6,476	)
			Cash sales and marketing expenses		$	38,756		$	38,186		$	29,261		$	76,942		$	56,365

(6)		We define cash general and administrative expenses as general and administrative expenses less depreciation,
		amortization and stock-based compensation as presented below:

		General and administrative expenses			$	80,723		$	78,425		$	65,681		$	159,148		$	128,282
		Depreciation and amortization expense				(7,291	)		(6,474	)		(5,719	)		(13,765	)		(10,978	)
		Stock-based compensation expense				(14,235	)		(13,673	)		(13,209	)		(27,908	)		(24,533	)
			Cash general and administrative expenses		$	59,197		$	58,278		$	46,753		$	117,475		$	92,771

(7)		Our cash operating expenses, or cash SG&A, as defined above, is presented below:

		Cash sales and marketing expenses			$	38,756		$	38,186		$	29,261		$	76,942		$	56,365
		Cash general and administrative expenses				59,197			58,278			46,753			117,475			92,771
			Cash SG&A		$	97,953		$	96,464		$	76,014		$	194,417		$	149,136

		The geographic split of our cash operating expenses, or cash SG&A, is presented below:

		Americas cash SG&A			$	65,969		$	67,025		$	49,499		$	132,994		$	98,311
		EMEA cash SG&A				20,100			19,099			17,545			39,199			34,481
		Asia-Pacific cash SG&A				11,884			10,340			8,970			22,224			16,344
			Cash SG&A		$	97,953		$	96,464		$	76,014		$	194,417		$	149,136

(8)		We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-
		based compensation expense, restructuring charges and acquisition costs as presented below:

		Income from operations			$	102,666		$	101,098		$	74,866		$	203,764		$	146,171
		Depreciation, amortization and accretion expense				96,944			93,922			86,426			190,866			165,951
		Stock-based compensation expense				20,549			19,103			18,318			39,652			33,853
		Restructuring charges				-			-			103			-			599
		Acquisition costs				1,919			1,027			1,615			2,946			2,030
			Adjusted EBITDA		$	222,078		$	215,150		$	181,328		$	437,228		$	348,604

		The geographic split of our adjusted EBITDA is presented below:

		Americas income from operations			$	67,242		$	61,918		$	49,072		$	129,160		$	96,391
		Americas depreciation, amortization and accretion expense				62,329			60,421			57,246			122,750			110,728
		Americas stock-based compensation expense				15,657			15,151			14,527			30,808			26,369
		Americas restructuring charges				-			-			103			-			599
		Americas acquisition costs				252			262			1,556			514			1,922
			Americas adjusted EBITDA			145,480			137,752			122,504			283,232			236,009

		EMEA income from operations				22,962			27,279			14,178			50,241			25,649
		EMEA depreciation, amortization and accretion expense				18,329			17,312			18,512			35,641			35,356
		EMEA stock-based compensation expense				2,673			2,164			2,147			4,837			4,442
		EMEA acquisition costs				1,241			129			12			1,370			14
			EMEA adjusted EBITDA			45,205			46,884			34,849			92,089			65,461

		Asia-Pacific income from operations				12,462			11,901			11,616			24,363			24,131
		Asia-Pacific depreciation, amortization and accretion expense				16,286			16,189			10,668			32,475			19,867
		Asia-Pacific stock-based compensation expense				2,219			1,788			1,644			4,007			3,042
		Asia-Pacific acquisition costs				426			636			47			1,062			94
			Asia-Pacific adjusted EBITDA			31,393			30,514			23,975			61,907			47,134

				Adjusted EBITDA	$	222,078		$	215,150		$	181,328		$	437,228		$	348,604

(9)		We define cash gross margins as cash gross profit divided by revenues.

		Our cash gross margins by geographic region is presented below:

		Americas cash gross margins				71	%		71	%		68	%		71	%		69	%

		EMEA cash gross margins				64	%		65	%		59	%		64	%		59	%

		Asia-Pacific cash gross margins				65	%		65	%		63	%		65	%		63	%

(10)		We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

		Americas adjusted EBITDA margins				49	%		48	%		48	%		48	%		49	%

		EMEA adjusted EBITDA margins				44	%		46	%		39	%		45	%		38	%

		Asia-Pacific adjusted EBITDA margins				47	%		49	%		46	%		48	%		47	%

(11)		We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental
		revenue growth as follows:

		Adjusted EBITDA - current period			$	222,078		$	215,150		$	181,328		$	437,228		$	348,604
		Less adjusted EBITDA - prior period				(215,150	)		(198,131	)		(167,276	)		(389,759	)		(295,408	)
			Adjusted EBITDA growth		$	6,928		$	17,019		$	14,052		$	47,469		$	53,196

		Revenues - current period			$	466,264		$	452,200		$	394,900		$	918,464		$	757,929
		Less revenues - prior period				(452,200	)		(431,312	)		(363,029	)		(848,913	)		(675,591	)
			Revenue growth		$	14,064		$	20,888		$	31,871		$	69,551		$	82,338

		Adjusted EBITDA flow-through rate				49	%		81	%		44	%		68	%		65	%

CONTACT:
Equinix Investor Relations Contacts:
Equinix, Inc.
Katrina Rymill, 650-598-6583
krymill@equinix.com
or
Equinix, Inc.
Jason Starr, 650-598-6020
jstarr@equinix.com
or
Equinix Media Contacts:
Equinix, Inc.
Melissa Neumann, 650-598-6098
mneumann@equinix.com
or
GolinHarris for Equinix, Inc.
Liam Rose, 415-318-4380
lrose@golinharris.com

		EQUINIX, INC.


DATE:	July 25, 2012	By:	/s/ KEITH D. TAYLOR
			Keith D. Taylor
			Chief Financial Officer

	Exhibit Number	Description

	99.1	Press Release of Equinix, Inc. dated July 25, 2012.


EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
		2012			2012			2011			2012			2011

Net income		$	37,640		$	34,811		$	30,733		$	72,451		$	55,878

Other comprehensive income (loss), net of tax:
	Foreign currency translation gain (loss)		(49,207	)		34,312			20,749			(14,895	)		71,432
	Unrealized gain (loss) on available for sale securities		(177	)		78			(5	)		(99	)		(26	)
Other comprehensive income (loss), net of tax:			(49,384	)		34,390			20,744			(14,994	)		71,406

Comprehensive income (loss), net of tax			(11,744	)		69,201			51,477			57,457			127,284

	Net income attributable to redeemable non-controlling interests		(1,193	)		(288	)		(3	)		(1,481	)		(3	)
	Other comprehensive income (loss) attributable to redeemable non-controlling interests		3,974			(1,059	)		(1,067	)		2,915			(1,067	)

Comprehensive income (loss) attributable to Equinix, net of tax		$	(8,963	)	$	67,854		$	50,407		$	58,891		$	126,214


EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)

		June 30,		December 31,
		2012		2011

Capital lease and other financing obligations		$	477,600	$	401,811

Paris IBX financing			14,925		52,104
ALOG financing			14,546		10,288
Asia-Pacific financing			184,824		193,843
	Total loans payable		214,295		256,235

Senior notes			1,500,000		1,500,000

Convertible debt, net of debt discount			701,578		941,084
Plus debt discount			68,158		78,652
	Total convertible debt principal		769,736		1,019,736

Total debt outstanding		$	2,961,631	$	3,177,782

	(d) Exhibits.

	99.1	Press Release of Equinix, Inc. dated July 25, 2012.