This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Internap Network Services' CEO Discusses Q4 2010 Results - Earnings Call Transcript

Stocks in this article: INAP

On Slide 4, you can see quarterly revenue and segment margin trends in our two reporting units. Fourth quarter Data Center Services revenue increased for the second consecutive quarter to $31.7 million. On a year-over-year basis, Data Center Services revenue decreased $1.4 million as proactive churn outpaced underlying growth in our core Data Center Services.

Compared with the fourth quarter of 2009, Data Center segment profit rose 21% and margin increased 800 basis points. At the end of the fourth quarter, we had successfully exited the last contract associated with our proactive churn program. This initiative has had a significant benefit on our overall profitability. The strategic benefit is clear when we consider that Data Center segment profit has increased 34% or $3.1 million from the third quarter of 2009 through the fourth quarter of 2010 even though Data Center revenue has declined by $1.8 million.

While IP Services revenue declined in the fourth quarter, we remain confident in the long-term ability to drive top line growth from this business unit based on underlying metrics, including traffic, bookings and churn. We also continue to develop and deploy services that will drive incremental revenue and further reduce churn. IP Services segment margins remain healthy in the low 60 percentages. And we expect this to continue.

In the next several slides, we will provide some highlights for our full year 2010 results. Slide 5 provides a brief summary of our 2010 income statement metrics. Despite a 5% reduction in overall revenue, total segment profit increased 3% year-over-year and segment margin increased 360 basis points to 47.8%. This is particularly noteworthy when we consider that all of the profit improvement came from our Data Center Services business.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs