Equinix posts 2Q loss, gives weak revenue forecast

Equinix posts 2nd-quarter loss and issues weak revenue forecast; shares plunge after hours

Associated Press

REDWOOD CITY, Calif. (AP) -- Equinix Inc., a data center operator, reported a loss for its second quarter due to increased expenses and special charges. It also issued a weak revenue forecast and its shares fell 6 percent in after-hours trading Wednesday on the news.

The Redwood City, Calif., posted a loss of $28.7 million, or 58 cents per share, for the period that ended June 30. This includes a $93.6 million one-time charge for debt extinguishment tied to the redemption of senior notes. The company reported net income of $36.4 million, or 73 cents per share, last year.

Equinix plans to convert itself to a real estate investment trust by 2015. The cost of this process, along with other added expenses, cut into its profitability during the period.

Its total revenue increased to $525.7 million from $457.2 million. Its non-recurring revenue took a $5.8 million hit during the second quarter due to a change in accounting estimate related to non-recurring installation fees.

Analysts polled by FactSet were anticipating earnings of 69 cents per share on revenue of $533.3 million.

Equinix said that it anticipates its revenue for the third quarter will come in between $538 million and $542 million; analysts had forecast $560.6 million. For the full year, it expects its revenue will range between roughly $2.14 billion and $2.15 billion; analysts forecast $2.2 billion.

Shares fell $11.63 to $180 in after-hours trading following the report. Its stock fell $2.36, outpacing broader market declines, to close regular trading at $191.63.

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