IP and data center specialist Internap Network Services (NASDAQ:INAP, news, filings) reported Q4 and full year earnings yesterday after the bell. Revenues continued to see pressure, falling sequentially from the third quarter but still beating analysts estimates slightly. However, EBITDA was moved higher to $9M for the quarter, fueled by improving gross margins. Normalized earnings per share of $0.02 were also better than expected. Here's a quick table to put the numbers into the context of the full year:
|$ in millions||Q1/09||Q2/09||Q3/09||Q4/09|
Overall, the fourth quarter wasn't huge, but there were a few promising signs. 2009 was a rebuilding year for Internap, but lately the market has been looking more favorably on the company. Will they return to growth in 2010? All year, Internap's IP business has been pressured while its data center business has been growing steadily - both matching sector-wide trends. Those data center revenues are now the company's largest business, and thus the scale may be tipping in their favor just as they get their margins back in shape.
Internap also announced that it intends to build out an additional 27,000 square feet of space in Silicon Valley at a cost of some $23M, with the first 14,000 square feet to come online in the third quarter. They will also add 5,000 square feet of customer space in Houston, also to be ready in Q3.
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