Internap has decided not to wait until the new year begins to update the market on its plans and expectations. The cloud and networking company has reaffirmed its Q4 guidance while, offered projections for 2017, and revealed more details on its ongoing reorganization and cost cutting.
Revenue for 2016 is still expected to be in the $297-300M range with EBITDA of the $81-83M, both of which they had lowered from earlier projections when Q3 numbers came out. Revenue for 2017 is expected to be in the $275-285M range, lower than analysts have predicted due to plans to sell or discontinue non-core and/or unprofitable products and offerings. EBITDA on the other hand is expected to rise slightly to $84-87M despite the lower revenue. Capex is expected to fall to $42M for the year.
Some of the higher EBITDA will come from the cost-savings the company has been implementing, the first round of which is now complete. Internap is also creating pureplay business units for each of its Colocation and Cloud products, allowing each a more specific focus. Of course, it also makes them easier to sell off, should the right offer come in.
Internap is also planning to recapitalize the balance sheet, with both a public offering or perhaps a registered rights offering for debt or equity being on the table.
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