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Equinix, Inc.
901 Marshall Street, Redwood City, CA 94063 * (650) 298-0400
Business Description The Company designs, builds and operates neutral Internet Business Exchange centers, or IBX centers, where Internet businesses place their equipment and their network facilities in order to interconnect with each other.
Offering
Information

Company has
gone public

Trading As  EQIX (NASNTL) Industry  Telecommunications (SIC 4813)
Type of Stock Offered  Common Shares Filing Date  6/21/00
Domestic Shares Offered  20,000,000 Offer Date  8/10/00
Foreign Shares Offered  0 Filing Range  $10.00 - $12.00
Company Shares  20,000,000 Offer Price  $12.00
Selling Shrhldrs Shares  0 Gross Spread  $0.840
Gross Proceeds  $240,000,000 Selling  $0.500
Expenses  - - Reallowance  $0.100
Post-IPO Shares  73,770,000 Employees  - -
Primary
Underwriting
Group
Underwriter NameParticipationUnderwriter Phone
Goldman, Sachs & Co. Lead Manager (212) 902-5959
Chase H&Q; Co-manager (415) 439-3626
Epoch Partners Co-manager  
Salomon Smith Barney Co-manager (212) 723-7300
Income
Statement
and
Cash Flow
Summary
  Prior
Audited
Income
Latest
Unaudited
Income
  Full Year Audited Figures 3 Months Ending
Figures in U.S. millions except per share data       12/31/98 12/31/99 3/31/99 3/31/00
Revenues   - - - 0.000 0.037 0.000 0.136
Income from Oper.   - - - -0.950 -19.783 -1.419 -13.955
Net Income   - - - -1.020 -20.791 -1.345 -18.009
E.P.S   - - - -1.480 -5.140 -0.740 -2.400
Revenue Growth (%)      - - - -   -
Net Income Growth (%)      - - - -   -
Oper. Profit Margin (%)    - - - - - - -
Net Profit Margin (%)    - - - - - - -
Cash Flow - Oper.     -9.91 -0.75 -4.18
Cash Flow - Inv.     -86.27 4.37 -10.94
Cash Flow - Fin.     295.18 2.02 -0.37
Balance Sheet
Summary
and
Financial
Ratios
Balance sheet as of: 3/31/00 Financial Ratios
Total Assets    331.98 Current Assets    222.69 Current Ratio    5.27
Total Liab.    332.98 Current Liab.    42.29 Debt Ratio    100.30%
Total Equity    -1.00 Working Cap.    180.40 Debt to Equity Ratio    -
Cash    187.68    Return on Assets   -
Use Of
Proceeds
The proceeds from the proposed offering will be used to fund the design, construction and operation of additional IBX centers and for other general corporate purposes, including working capital.
Legal Counsel
Registrar
Auditor
Issuer's Law Firm  Gunderson Dettmer Stough Villeneuve Franklin
Bank's Law Firm  Cahill Gordon & Reindel
Registrar/Transfer Agent  Boston Equiserve Limited Partnership
Auditor  Pricewaterhouse Coopers LLC
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Industry
Competition
The Company�s market is new, rapidly evolving, and likely to have an increasing number of competitors. To be successful in this emerging market, the Company must be able to sufficiently differentiate its IBX model from existing colocation and web hosting companies. The Company may also face competition from persons seeking to replicate the Company�s IBX concept. The Company may not be successful in differentiating itself or achieving widespread market acceptance of its business. Furthermore, enterprises that have already invested substantial resources in peering arrangements may be reluctant or slow to adopt the Company�s approach that may replace, limit or compete with their existing systems. If the Company is unable to complete its IBX centers in a timely manner, other companies will be able to attract the same customers that the Company is targeting. Once the customers are located in the Company�s competitors' facilities, it will be very difficult, if not impossible, to convince them to relocate to the Company�s IBX centers.
Business
Plan
The Company�s objective is to provide content providers, ASPs and e-commerce companies with the ability to directly interconnect with a choice of bandwidth providers, ISPs, and site and performance management companies to grow their business. To accomplish this objective the Company is employing the following strategies: (i) Provide Customer Choice, (ii) Manage Choice to Create Network Effect, (iii) Leverage Strategically Scalable Centers, (iv) Expand Globally and Capitalize on First-Mover Advantage, (v) Establish Equinix as the Leading Brand for IBX Centers and (vi) Leverage Blue-Chip Equity Owners.
Principal
Shareholders
Name of Shareholder% Owned
Before
% Owned
After
Benchmark Capital, entities affiliated with 16.10  
Cisco Systems, Inc. 12.60  
Microsoft Corporation 6.20  
Capital Research and Management Company 6.20  
Note: represents ownership of 5% or more prior to the offering.

Last updated: 8/20/00 7:02:45 PM
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