Equinix, Inc. (EQIX) has reported a 25.09 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $51.45 million, or $0.72 a share in the quarter, compared with $41.13 million, or $0.71 a share for the same period last year.
Revenue during the quarter surged 34.67 percent to $924.68 million from $686.65 million in the previous year period. Gross margin for the quarter contracted 346 basis points over the previous year period to 49.14 percent. Total expenses were 81.62 percent of quarterly revenues, up from 79.48 percent for the same period last year. That has resulted in a contraction of 214 basis points in operating margin to 18.38 percent.
Operating income for the quarter was $169.94 million, compared with $140.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $420.04 million compared with $321.47 million in the prior year period. At the same time, adjusted EBITDA margin contracted 139 basis points in the quarter to 45.43 percent from 46.82 percent in the last year period.
"We had a great third quarter, delivering record bookings with double-digit growth in the cloud, financial and enterprise segments," said Steve Smith, president and chief executive officer of Equinix. "We continue to see growth in Fortune 500 new customers as multi-national enterprises re-architect to a cloud-delivered infrastructure to optimize performance. We remain focused on scaling and refining our go-to-market engine, directed at capturing this significant shift to the cloud, and delivering continued profitable growth."
For the fourth-quarter 2016, Equinix, Inc. expects revenue to be in the range of $940 million to $946 million.
For financial year 2016, Equinix, Inc. expects revenue to be in the range of $3,609 million to $3,615 million.
Operating cash flow improves
Equinix, Inc. has generated cash of $717.27 million from operating activities during the nine month period, up 8.73 percent or $57.60 million, when compared with the last year period.
The company has spent $1,239.70 million cash to meet investing activities during the nine month period as against cash outgo of $605.93 million in the last year period.
The company has spent $737.40 million cash to carry out financing activities during the nine month period as against cash outgo of $319.77 million in the last year period.
Cash and cash equivalents stood at $987.92 million as on Sep. 30, 2016, up 194.49 percent or $652.45 million from $335.47 million on Sep. 30, 2015.
Working capital turns positive
Working capital of Equinix, Inc. has turned positive to $164.92 million on Sep. 30, 2016 from negative $222.09 million on Sep. 30, 2015. Current ratio was at 1.11 as on Sep. 30, 2016, up from 0.85 on Sep. 30, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 39 days for the same period last year.
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