Summary
Equinix, Inc. (EQIX) filed an 8-K on November 12, 2013, primarily to disclose an accounting adjustment related to the recognition period of non-recurring installation fees and to update its business outlook for the remainder of 2013. The company concluded that an error in recognizing these fees prospectively from 2006, rather than from 2013, was not material to prior financial statements. However, the cumulative impact of $27.2 million as of December 31, 2012, is considered material to the 2013 financial statements and will be revised in the Q3 2013 10-Q filing. This adjustment is expected to have no impact on cash flows.
Key Highlights
- 1Equinix will revise its consolidated financial statements to correct the revenue recognition period for non-recurring installation fees, recognizing the cumulative impact of $27.2 million in 2013.
- 2The company determined that the error was not material to any prior interim and annual financial statements, thus not requiring amendment of previously filed reports.
- 3The revision to revenue recognition will commence with the Form 10-Q for the quarter ending September 30, 2013.
- 4Equinix updated its Q4 2013 revenue guidance upwards by $3.0 million to a range of $562.0 to $566.0 million.
- 5Full-year 2013 revenue guidance was also increased by $5.0 million, now expected to be between $2,150.0 million and $2,154.0 million.
- 6Adjusted EBITDA guidance for Q4 2013 and full-year 2013 was raised by $3.0 million and $5.0 million, respectively.
- 7The company provided updated FX assumptions for Q4 2013 guidance, including Euro, Pound, Singapore Dollar, and Brazilian Real exchange rates.