Equinix's future expansion plans include Latin American markets, CEO says

Thursday, February 10, 2011

US provider of global data center services Equinix (Nasdaq: EQIX) expects to enter new markets in the future, including Latin America, company CEO Stephen Smith said during a conference call with investors.

"We will continue to expand our global reach and scale. Our long-term goal is to build an unrivaled global data center footprint to power the interconnected world," the executive said. "This could take us to new markets, such as Latin America, Eastern Europe, the Middle East and emerging markets in Asia."

Equinix posted global revenues of US$345mn for the fourth quarter of 2010, up 5% over the previous quarter and 42% over the same period last year.

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Revenues for full 2010 were US$1.22bn, a 38% increase, the company said.

Equinix's net profit for the fourth quarter totaled US$13.7mn, compared with US$17.7mn in the year-ago quarter. The company's net profit for full 2010 amounted to US$36.6mn, down from US$69.4mn the previous year.

For the first quarter of 2011, the company expects revenues to be in the range of US$354mn-356mn.

Equinix operates in 35 markets across North America, Europe and Asia-Pacific.

Equity research firm Merriman Capital said Equinix "remains competitively well positioned to benefit from secular trends in internet usage, migration of applications to the web, mobile data usage, cloud computing and electronic trading."

"The company should also continue to benefit from its global footprint, which is unique in the sector," it added, placing its buy recommendation for Equinix, saying it was positive on the company.