Summary
Equinix, Inc. (EQIX) filed an 8-K on November 25, 2013, to disclose revised historical consolidated financial results for quarterly periods starting March 31, 2012. These revisions stem from the company's re-evaluation of the accounting treatment for non-recurring installation fees, specifically the period over which these fees are recognized. Equinix concluded that these fees should have been recognized over a longer period, effectively starting in 2006, rather than the prospective application that began in the second quarter of 2013. The filing also includes corrections for several previously identified, though immaterial, errors. Investors should note that the company is referencing non-GAAP financial information in these revised results and has provided reconciliations to GAAP measures. The full details of these adjustments are available in Equinix's Form 10-Q for the quarter ended September 30, 2013.
Key Highlights
- 1Equinix (EQIX) is providing revised historical consolidated financial results for periods beginning March 31, 2012.
- 2The primary revision relates to the accounting for non-recurring installation fees, extending their recognition period.
- 3The company determined that a longer recognition period for these fees should have been applied retroactively from 2006.
- 4The revised financial results also correct other previously identified immaterial accounting errors.
- 5The company is referencing non-GAAP financial information and has provided reconciliations to GAAP measures.
- 6The detailed explanation of these revisions can be found in the Form 10-Q filed for the quarter ended September 30, 2013.