Data center service operator Equinix posts lower 1st-quarter profit as expenses increase

Equinix posts lower 1Q profit but sales grow

FOSTER CITY, Calif. — Data center service provider Equinix Inc. posted a decline in its first-quarter profit Wednesday as operating costs and other expenses increased.

The company earned $14.2 million, or 35 cents per share, down 8 percent from a profit of $15.5 million, or 40 cents per share, in the same period a year earlier.

Revenue rose 25 percent to $248.6 million from $199.2 million.

Analysts, on average, predicted profit of 43 cents per share on revenue of $246.4 million, according to a poll by Thomson Reuters.

Operating costs grew 55 percent to $67.6 million. Interest expenses rose to $25.7 million from $13.5 million.

For the second quarter, the company expects revenue of $258 million to $260 million. Analysts predict revenue of $258.5 million.

For the full year, Equinix forecast revenue of about $1.07 billion to $1.08 billion. Analysts expect $1.06 billion in revenue.

“Demand for our services remained strong across all three operating regions during the quarter and we continue to benefit from our global reach and scale,” said Steve Smith, president and CEO, in a statement.

Shares rose $1.36 to close at $100.62.