Equinix 4th-quarter profit falls, but beats estimates; 1st-quarter outlook disappoints

Equinix 4Q profit falls, beats estimates

FOSTER CITY, Calif. — Data center service provider Equinix Inc. said Wednesday that its fourth-quarter net profit fell 82 percent from a year earlier mainly because it had to pay higher taxes.

But its also issued an outlook for the first quarter below expectations, and its shares slipped.

Net income in the quarter that ended Dec. 31 came to $17.7 million, or 44 cents per share, down from $97.9 million, or $2.33 per share, a year earlier.

The quarter from the previous year benefited from a $88 million income tax benefit, while this quarter had a $9.7 million tax expense.

Quarterly revenue rose 27 percent to $243 million from $191 million a year ago.

The results exceeded the estimates of analysts polled by Thomson Reuters, who expected earnings of 34 cents per share on $238 million in revenue.

Looking ahead, the company said it expects first-quarter revenue between $245 million and $247 million, with adjusted earnings before interest, taxes, depreciation and amortization between $110 million and $112 million.

Analysts were looking for $248 million in first-quarter revenue.

The company’s shares fell $2.51, or 2.7 percent, to $90.50 in extended trading after closing unchanged at $93.01 on Wednesday.

Equinix said it expects annual revenue in 2010 between $1.05 billion and $1.08 billion, with adjusted EBITDA between $460 million and $480 million. The top end of the revenue range met the average expectation of analysts.

For all of 2009, Equinix posted net income of $69 million, or $1.75 per share, down from $108 million, or $2.79 per share in 2008. Revenue rose 25 percent to $883 million from $705 million.