Company profile

Ticker
INAP
Exchange
CEO
Peter D. Aquino
Employees
Incorporated in
Location
Fiscal year end
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Former names
Internap Network Services Corp, Internap Network Services Corp
SEC CIK
IRS number
912145721

INAP stock data

(
)

Calendar

8 Aug 19
16 Sep 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 73.13M 73.56M 78.24M 82.97M
Net income -18.56M -19.64M -18.45M -15.48M
Diluted EPS -0.78 -0.83 -0.82 -0.75
Net profit margin -25.37% -26.70% -23.59% -18.66%
Operating income 590K -2.07M 975K 2.17M
Net change in cash 2.2M -9.56M 5.98M -2.9M
Cash on hand 10.47M 8.27M 17.82M 11.84M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 317.37M 280.72M 298.3M 318.29M
Net income -62.5M -45.34M -124.74M -48.44M
Diluted EPS -3.01 -2.39 -9.54 -3.73
Net profit margin -19.69% -16.15% -41.82% -15.22%
Operating income 6.16M 4.77M -93.07M -25.9M
Net change in cash 3.22M 4.21M -7.38M -2.31M
Cash on hand 17.82M 14.6M 10.39M 17.77M

Financial data from Internap earnings reports

Financial report summary

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Risks
  • We cannot predict with certainty the future evolution of the IT infrastructure market in which we compete and may be unable to respond effectively or on a timely basis to rapid technological change.
  • If we are unable to develop new and enhanced services and products that achieve widespread market acceptance, or if we are unable to improve the performance and features of our existing services and products or adapt our business model to keep pace with industry trends, our business and operating results could be adversely affected.
  • Failure to retain existing customers or attract new customers will cause our revenue to decline.
  • Our capital investment strategy for data center, cloud and IT infrastructure services expansion may contain erroneous assumptions causing our return on invested capital to be materially lower than expected and could materially impact our results of operations.
  • We may experience difficulties in executing our capital investment strategy to expand our IT infrastructure services, upgrade existing facilities or establish new facilities, products, services or capabilities.
  • Pricing pressure may continue to decrease our revenue for certain services.
  • The market in which we operate is highly competitive and has experienced recent consolidation which may continue, and we may lack the financial and other resources, expertise, scale or capability necessary to capture increased market share or maintain our market share.
  • We have a long sales cycle for our IT infrastructure services and the implementation efforts required by customers to activate them can be substantial.
  • We may fail to obtain or lose customers if they elect to develop or maintain some or all of their IT infrastructure services internally.
  • Our network and software are subject to potential security breaches and similar threats that could result in liability and harm our reputation.
  • If governments modify or increase regulation of the Internet, or goods or services necessary to operate the Internet or our IT infrastructure, our services could become more costly.
  • If we fail to comply with privacy rules and regulations implemented by foreign governments and agencies, our business could be adversely affected, and we could face claims for liabilities.
  • We may be liable for the material that content providers distribute over our network, and we may have to terminate customers that provide content that is determined to be illegal, which could adversely affect our operating results.
  • If we fail to comply with telecommunications services regulations our business could be negatively affected.
  • We depend on third party suppliers for key elements of our IT infrastructure services and products. If we are unable to obtain these elements on a cost-effective basis, or at all, or if such services are interrupted, limited or terminated, our growth prospects and business operations may be adversely affected.
  • Some of our products and services contain or use open source software, which may pose risks to our proprietary software and solutions.
  • Any failure of our physical IT infrastructure or applications could lead to unexpected costs and disruptions that could harm our business reputation, consolidated financial condition, results of operations and cash flows.
  • Our inability to renew our data center leases, or renew on favorable terms, and potential unknown costs related to asset retirement obligations could negatively impact our financial results.
  • A failure in the redundancies in one or more of our NOCs, POPs or computer systems could cause a significant disruption in Internet connectivity which could impact our ability to serve our customers.
  • Our business requires the continued development of effective and efficient business support systems to support our customer growth and related services.
  • We are required to maintain, repair, upgrade, and replace our network and our facilities, the cost of which could materially impact our results and our failure to do so could irreparably harm our business.
  • Our global operations may not be successful.
  • The bankruptcy, insolvency or financial difficulties of a major customer could have a material adverse effect on us.
  • We are dependent on certain key personnel, the loss of which may adversely affect our financial condition or results of operations.
  • Because we face significant competition for acquisition and business opportunities from numerous companies with a business plan similar to ours, it may be difficult for us to fully execute our business strategy.
  • We face certain risks associated with the acquisition or disposition of businesses or entry into joint ventures.
  • We intend to increase our size in the future, and may experience difficulties in managing growth.
  • We may become involved in various types of litigation that may adversely impact our business.
  • Deterioration of global economic conditions could adversely affect our business.
  • We are subject to risks associated with our international operations.
  • Global or local climate change and natural resource conservation regulations or requirements could adversely impact our business.
  • If we are unable to comply with the restrictions and covenants in our credit agreement or other debt agreements, there would be a default under the terms of these agreements, and this could result in an acceleration of payment of funds that have been borrowed or may have other material adverse effects on our business, consolidated financial condition, results of operations and cash flows.
  • We currently have a significant amount of debt which we may not be able to repay when due. Any failure to meet or repay our debt or meet our debt obligations and other long-term commitments would have a material adverse effect on our business, consolidated financial condition, results of operations and cash flows.
  • Our significant amount of indebtedness could materially adversely affect our results of operations, cash flows, liquidity and ability to compete in our industry.
  • To service our significant indebtedness, we will require a significant amount of cash. However, our ability to generate cash depends on many factors many of which are beyond our control.
  • Disruptions in the financial markets or increases in interest rates could affect our ability to obtain debt or equity financing or to refinance our existing indebtedness on reasonable terms (or at all), could increase the cost of servicing our debt and have other adverse effects on us.
  • The replacement of LIBOR with an alternative reference rate may adversely affect interest expense related to outstanding debt.
  • We may be able to incur substantially more debt and take other actions that could diminish our ability to make payments on our indebtedness when due, which could further impact the risks associated with our current level of indebtedness.
  • Our results of operations have fluctuated in the past and likely will continue to fluctuate, which could negatively impact the price of our common stock.
  • We may incur additional goodwill and other intangible asset impairment charges, restructuring charges or both.
  • Our stock price may be volatile.
  • Changes in U.S. tax laws could have an effect on our business, cash flow, results of operations or financial conditions.
  • We may not be able to fully utilize our U.S. net operating loss and other tax carryforwards.
  • We may face litigation and liability due to claims of infringement of third party intellectual property rights and due to our customers' use of our IT infrastructure services.
  • We may not be successful in protecting and enforcing our intellectual property rights, which could adversely affect our financial condition and operating results.
  • The insurance coverage that we purchase may prove to be inadequate or unavailable when we need the coverage.
  • We may require additional capital and may not be able to secure additional financing on favorable terms to meet our future capital needs, which could adversely affect our financial position and result in stockholder dilution.
  • Provisions of our charter documents and Delaware law may have anti-takeover effects that could prevent a change in control even if the change in control would be beneficial to our stockholders.
  • Actions of stockholders could cause us to incur substantial costs, divert management’s attention and resources, and have an adverse effect on our business.
  • Concentration of ownership among our certain large stockholders and their affiliates may limit the influence of new investors on corporate decisions and the interests of such large stockholders may materially differ from your interests.
  • The trading price of our common stock may decline if our stockholders sell a large number of shares of our common stock or if we issue a large number of new shares of our common stock or shares convertible into our common stock.
  • If we are unable to maintain compliance with the continued listing requirements as set forth in The Nasdaq Listing Rules, our common stock could be delisted from The Nasdaq Global Market, and if this were to occur, then the price and liquidity of our common stock and our ability to raise additional capital could be adversely affected.
  • Because we do not intend to pay dividends in the foreseeable future, stockholders will benefit from an investment in our common stock only if it appreciates in value.
  • A failure of our controls and procedures could have a material adverse effect on our business, financial condition and results of operations.
Management Discussion
  • 2018 was a transformative year for our Company. As part of our prior year turnaround plan, we accomplished several critical financial and operating performance objectives:
  • Our GAAP net loss attributable to INAP shareholders was $62.5 million for the year ended December 31, 2018, compared to $45.3 million for the same period in 2017. Our adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") margin, a non-GAAP performance measure, increased 220 basis points to 35.1% for the year ended December 31, 2018, compared to 32.9% for the same period in 2017. We calculate Adjusted EBITDA margin as Adjusted EBITDA, defined below in "Non-GAAP Financial Measures," as a percentage of revenues. We will continue to focus on enhancing margin in 2019 through product mix shift, optimizing our product offerings and other efficiency initiatives.
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New words: alternative, announced, announcement, ARRC, Committee, compelling, exposed, fewer, indexed, July, large, larger, legacy, noncash, Overnight, paced, POP, Private, proposed, Reform, slightly, SOFR, stop, submit
Removed: improving, integrate, suitable