Internap Plans Big New Secaucus Data Center

As it closed the books on Q3, Internap Network Services (NASDAQ:INAP, news, filings) had some interesting expansion news to share yesterday.  They unveiled plans for a big new 100,000 square foot data center in Secaucus, New Jersey, which will boost their New York City metro area inventory by 45%.  This buildout plan comes on the heels of the recent completion of their Los Angeles facility, and continues their recent initiatives to focus the business around high value company-owned colo space.

Internap also announced an interesting contract with Vix Technology, which specializes in intelligent transit technologies globally.  Vix has moved their electronic toll collection platform in Seattle from an in-house facility into Internap’s managed environment, as well as one out on Martha’s Vineyard and another to come in Salt Lake City.

As for the third quarter, IP revenues took a hit and brought the rest down below expectations.  Datacenter revenues were up as usual, but not enough to compensate.  EBITDA margins rose back above 18%, while normalized earnings per share fell back into the red for the first time since the same quarter last year.  Here’s a quick table of the relevant numbers in some context:

$ in millions	Q3/11	Q4/11	Q1/12	Q2/12	Q3/12
– Data center	34.1	35.3	39.9	41.5	42.1
– IP Services	27.9	27.5	27.1	27.2	26.0
Total Revenues	62.0	62.8	67.0	68.7	68.1
EBITDA	11.3	12.6	12.2	12.2	12.5
Adj.EBITDA Margin	18.2%	20.1%	18.3%	17.7%	18.3%
Normalized EPS	-0.01	0.01	0.01	0.01	-0.01

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Categories: Datacenter · Financials