The Company uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.

Revenues were $452.2 million for the first quarter, a 5% increase over the previous quarter and a 25% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $429.6 million for the first quarter, a 5% increase over the previous quarter and a 25% increase over thesame quarter last year. Non-recurring revenues were $22.6 million in the quarter.

"Our strong first quarter results reflect growth in all three regions, which is being propelled by strong secular trends in mobility, cloud computing and data management, leaving us well positioned to achieve our 2012 objectives," said Steve Smith, president and CEO of Equinix. "Global ecosystems being formed inside Equinix reflect these trends as well as our unique position to power the global digital economy."

Cost of revenues were $225.1 million for the first quarter, a 2% decrease over the previous quarter and a 16% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $84.5 million, which we refer to as cash cost of revenues, were $140.6 million for the first quarter, a 2% decrease from the previous quarter and a 15% increase over the same quarter last year. Gross margins for the quarter were 50%, up from 47% for the previous quarter and up from 46% for the same quarter last year. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 69%, up from 67% for the previous quarter and up from 66% for the same quarter last year.

Selling, general and administrative expenses were $125.0 million for the first quarter, a 7% increase over the previous quarter and a 30% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $28.5 million, which we refer to as cash selling, general and administrative expenses, were $96.5 million for the first quarter, an 8% increase over the previous quarter and a 32% increase over the same quarter last year.

Interest expense was $52.8 million for the first quarter, a 4% decrease from the previous quarter and a 41% increase over the same quarter last year, primarily attributed to the $750.0 million 7.00% senior notes offering in July 2011. The Company recorded income tax expense of $14.0 million for the first quarter and income tax expense of $11.1 million in the same quarter last year.

Net income attributable to Equinix for the first quarter was $34.5 million. This represents a basic net income per share attributable to Equinix of $0.74 and a diluted net income per share attributable to Equinix of $0.71 based on a weighted average share count of 47.0 million and 51.1 million, respectively, for the first quarter of 2012.

Income from operations was $101.1 million for the first quarter, a 22% increase from the previous quarter and a 42% increase over the same quarter last year. Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs, for the first quarter was $215.2 million, an increase of 9% over the previous quarter and a 29% increase over the same quarter last year.

Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the first quarter, were $145.5 million, of which $102.4 million was attributed to expansion capital expenditures and $43.1 million was attributed to ongoing capital expenditures.

The Company generated cash from operating activities of $126.0 million for the first quarter as compared to $187.6 million in the previous quarter and $117.8 million for the same quarter last year. Cash provided by investing activities was $269.4 million in the first quarter as compared to cash used in investing activities of $194.6 million in the previous quarter and cash used in investing activities of $286.4 million for the same quarter last year. Cash used in financing activities was $44.0 million for the first quarter.

As of March 31, 2012, the Company's cash, cash equivalents and investments were $1,083.3 million, as compared to $1,076.3 million as of December 31, 2011.

In April 2012, virtually all of the holders of the 2.50% $250.0 million convertible subordinated notes converted their notes. The Company settled the $250.0 million in aggregate principal amount of the 2.50% convertible subordinated notes, plus accrued interest, in $253.1 million of cash and approximately 623,000 shares of the Company's common stock.

Business Outlook

For the second quarter of 2012, the Company expects revenues to be in the range of $466.0 to $468.0 million, which includes $3.0 million of negative foreign currency headwinds. Cash gross margins are expected to approximate 68%. Cash selling, general and administrative expenses are expected to range between $100.0 and $104.0 million. Adjusted EBITDA is expected to be between $212.0 and $214.0 million, which includes a $3.0 million increase in professional fees and $1.0 million of negative currency headwinds. Capital expenditures are expected to be approximately $240.0 to $260.0 million, comprised of approximately $40.0 million of ongoing capital expenditures and $200.0 to $220.0 million of expansion capital expenditures.

For the full year of 2012, total revenues are expected to be greater than $1,890.0 million, which includes $9.0 million of negative foreign currency headwinds. Total year cash gross margins are expected to approximate 67%. Cash selling, general and administrative expenses are expected to range between $390.0 and $420.0 million. Adjusted EBITDA for the year is expected to be greater than $860.0 million, which includes a $10.0 million increase in professional fees and $4.0 million of negative currency headwinds. Capital expenditures for 2012 are expected to be in the range of $700.0 to $800.0 million, comprised of approximately $135.0 million of ongoing capital expenditures and $565.0 to $665.0 million for expansion capital expenditures. 

Separately, Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today announced plans to build a third International Business Exchange™ (IBX®) data center in Florida. The new facility in Boca Raton (MI3) will support strong demand for Equinix data center services in the greater Miami metropolitan area and provide critical overseas connectivity. Scheduled to open in the fourth quarter of 2012, MI3 will provide 31,300 square feet of floor space, with additional space available for future expansion. The capital investment in MI3 of $18 million is already reflected in Equinix's guidance for 2012.

The Miami area has the sixth highest Internet capacity globally and serves as a key hub for domestic and international routes. Boca Raton is home to several major fiber-optic cable landing stations and MI3 is on the lowest latency route to Brazil, which will allow Equinix to serve high-bandwidth events such as the upcoming 2014 FIFA World Cup and 2016 Summer Olympics in Brazil. With its investment in ALOG, Equinix is in a strong position to offer managed hosting and colocation services from its three Brazil-based IBX data centers to serve the needs of customers looking to expand in the region. Additionally, the MI3 location in Boca Raton will offer important geographic diversity. While only 44 miles from Miami, Boca Raton is located outside of the evacuation zone for up to category 5 hurricanes making it ideal for business continuity requirements.

"As the seventh-largest economy in the world, Brazil is primed for strong economic and infrastructure growth, making it an attractive country for multi-national investment and expansion," said Charles Meyers, president of the Americas for Equinix. "The new MI3 data center in Boca Raton is a strategic addition to Platform Equinix offering a gateway to Latin America, which will allow us to better meet the growing demands of our customers in this important market."

tw telecom (Nasdaq: TWTC), a provider of managed services including business Ethernet, converged and IP VPN services to enterprises and carriers throughout the U.S. and globally, will expand its Equinix footprint into MI3 to support growing customer demand for its carrier Ethernet services, and to reach a rich ecosystem of cloud service providers and enterprise customers operating in Equinix data centers.

"Platform Equinix brings connectivity options, particularly for next-generation cloud services, for our enterprise customers in a wide range of industries, including healthcare, government, financial services, retail, technology and education," said Tom Marx, president of National Sales, Wholesale Services for tw telecom. "We are now in 22 Equinix data centers around the world and Platform Equinix continues to help drive our business by quickly bringing new service offerings to our 27,000 customers or even connecting with new customers through the Equinix Marketplace. The potential to do additional business in South America via MI3 is an exciting opportunity, as that region is a current hotbed for growth."