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Equinix Lifts Q2, FY10 Revenue View To Reflect Switch & Data Facilities Acquisition – Update

(RTTNews) – Data center services provider Equinix, Inc. (EQIX) on Friday said it raised its revenue guidance for both the second quarter and fiscal year 2010 to reflect anticipated results following the acquisition of Tampa, Florida-based Switch & Data Facilities Co., Inc., announced earlier this week.

For the second quarter of 2010, Foster City, California-based Equinix anticipates revenues to be between $296.0 million and $298.0 million, significantly above its prior range of between $258.0 million and $260.0 million.

On average, 23 analysts polled by Thomson Reuters currently expect the company to generate revenues of $259.09 million for the quarter.

Quarterly cash gross margins are estimated to be about 64% and cash selling, general and administrative expenses are anticipated to be around $64.0 million. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, is expected to be in the range of $125.0 million to $127.0 million.

Capital expenditures for the three-month period are estimated to be in the range of $155.0 million to $185.0 million, including approximately $33.0 million of ongoing capital expenditures and $122.0 million to $152.0 million of expansion capital expenditures.

In addition to this, for the full year 2010, Equinix expects total revenues for the year to be in the range of $1.23 billion to $1.24 billion. Previously, the group had projected total revenues in the range of $1.06 billion to $1.08 billion for the year. Analysts currently expect the company to generate revenues of $1.07 billion for the year.

Further, cash gross margins are expected to approximate 64% and cash selling, general and administrative expenses are projected to be between $255.0 million and $260.0 million. Full year adjusted EBITDA is anticipated to be in the range of $525.0 million to $535.0 million.

Equinix also foresees capital expenditures for the year to be in the range of $520.0 million to $580.0 million, comprising of nearly $130.0 million of ongoing capital expenditures and $390.0 million and $450.0 million of expansion capital expenditures.

The group noted that all guidance reflects a closing date of April 30, 2010 for Switch and Data acquisition and therefore contributes to Equinix’s guidance from May 1, 2010 onwards.

EQIX is currently trading on the Nasdaq at $90.41 per share, down $2.04 or 2.21%, on a volume of 231,519 shares. In the past 52-week period, the stock traded in a range of $63.69 to $110.57.

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