INAP Reports Fourth Quarter 2017 Financial Results

Internap ( NASDAQ:INAP) has announced its financial results for Q4 2017.

As quoted in the press release:

“We exit the fourth quarter with momentum and confidence that our turnaround continues with great progress,” stated Peter D. Aquino, President and CEO. “We are optimistic in 2018 given our growing sales pipeline, recent wins, and SingleHop integration opportunities that will drive top line growth.  We continue to optimize our real estate portfolio, and see upside in continued cost savings throughout the year.  In addition, we recently amended our credit facility adding flexibility post our all debt deal to acquire SingleHop, alleviating any immediate need to raise additional capital.  Looking ahead, we will be opportunistic in corporate development to search out accretive deals, and consider non-core asset sales or exits, that increase value for our shareholders.”

Revenue

●    Revenue totaled $70.0 million in the fourth quarter of 2017, an increase of 1.6% sequentially, and a decrease of 5.5% year over year. The sequential increase is a milestone that reverses the previous declining trend.  Year over year, approximately $1.2 million of the decline is from the proactive closure of the 75 Broad Street, New York facility, which improves profitability. Excluding this event, the year over year revenue decline was reduced to 3.9%. In addition, year over year declines were partially offset by approximately $1.9 million in revenue from the consolidation of INAP Japan, and $1.3 million from the acquisition of a new data center in Atlanta with an anchor tenant.

●    INAP COLO revenue totaled $52.9 million in the fourth quarter of 2017, an increase of 2.9% sequentially, and a decrease of 3.9% year over year.  Approximately $1.0 million of the year over year decline was attributed to the planned closure of the 75 Broad Street, New York facility.  Excluding this event, the year over year revenue decline was reduced to approximately 2.0%.  The declines were partially offset from the consolidation of INAP Japan, and the Atlanta data center mentioned above.

●    INAP CLOUD revenue totaled $17.2 million in the fourth quarter, and a decrease of 2.2% sequentially, and a decrease of 10.3% year over year.  Approximately $0.2 million of the year over year decline was attributed to the planned closure of the 75 Broad Street, New York facility.

Click here to read the full press release.