Terremark (AMEX:TWW)
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From May 2019 to May 2024
Terremark Worldwide, Inc. (AMEX:TWW):
Revenues increase 73% year over year, 13% quarter over quarter
Adds 39 new customers including NetLine Communications Corp.,
Pacific National Bank and the South Florida Water Management District
Existing customer expansions include the Broward Community College,
Citrix Systems, Inc., Cross Country Healthcare, Facebook, IDT Domestic
Telecom and Verisign Global Registry Services
Terremark Worldwide, Inc. (AMEX:TWW), a leading operator of integrated
Internet exchanges and a global provider of managed IT infrastructure
solutions for government and private sectors, today reported its results
for the quarter ended September 30, 2006.
Total revenues for the quarter ended September 30, 2006 were $24.2
million, exceeding guidance of $22.0 million to $23.0 million and
representing an increase of 13% over the previous quarter and 73% over
the same period the prior year. Total revenues for the quarter ended
September 30, 2006 included $3.7 million of project type revenues
related to the resale of equipment and consulting projects.
EBITDA, as adjusted, for the quarter ended September 30, 2006 was $3.2
million, compared to EBITDA, as adjusted, of $3.0 million the prior
quarter. EBITDA, as adjusted, also exceeded guidance of $2.0 million to
$3.0 million. EBITDA, as adjusted, for the quarter ended September 30,
2006 included $1.1 million related to the project type revenue. EBITDA,
as adjusted, is defined as income (loss) from operations less
depreciation, amortization and stock based compensation. EBITDA, as
adjusted, should be considered in addition to, but not in lieu of,
income (loss) from operations reported under GAAP.
“We are pleased with the results of the
quarter, particularly the growth and profitability of our recurring
revenue business, which represented over 70% of our EBITDA in the
quarter,” said Manuel D. Medina, Chairman and
CEO of Terremark Worldwide, Inc. “We also saw
strong growth in our managed service offerings, where we are gaining
traction in both the US and Europe. Our managed services offerings are a
key differentiator with customers often indicating they selected
Terremark as their data center outsourcing partner because of our full
suite of product offerings.”
Mr. Medina concluded, “We believe the results
of the quarter speak to the strength of our core business, and we look
to leverage this success through our stated strategy to expand our
footprint in California and the Washington D.C. area.”
Data center expenses were $14.8 million for the quarter ended September
30, 2006. Gross profit margins, excluding depreciation and amortization,
were 39% during the September 30, 2006 quarter.
As of September 30, 2006, Terremark’s cash
and cash equivalents were $11.4 million and working capital of
approximately $3.5 million.
Total colocation space utilization increased to 15.7% as of September
30, 2006 from 12.9% as of June 30, 2006. Utilization of built-out
colocation space increased to 56.3% as of September 30, 2006 from 46.2%
as of June 30, 2006. Additionally, utilization of total net collocation
space based on both deployed and yet to be deployed customers was 16.2%
at September 30, 2006, an increase from 15.3% at June 30, 2006.
Cross connects billed to customers increased to 4,865 as of September
30, 2006 from 4,245 the previous quarter and 3,182 a year earlier,
representing an increase of 15% and 53%, respectively.
During the quarter ended September 30, 2006, Terremark added 39 new
customers, for a total of 566 customers at the end of the period.
Terremark booked $10.0 million of new annual contract value during the
quarter ended September 30, 2006. Over 70% of the bookings during the
September 2006 quarter were generated from existing customers.
For the quarter ended September 30, 2006, annualized data center
services revenue per utilized square foot decreased slightly to $1,827
compared to $1,848 for the previous quarter. For the quarter ended
September 30, 2006, data center services revenue churn was less than 1%
for the commercial sector and 0% churn for the federal government
sector. The Company defines churn as annualized data center services
revenue lost as a percentage of annualized data center services revenue
for the most recent quarter.
Medina added, “The second quarter was an
important period, as we demonstrated the continued strengthening of our
business fundamentals and are beginning to benefit from the leverage in
our model.”
Business Outlook
For the quarter ending December 31, 2006, the Company expects revenue to
range from $24.0 million to $26.0 million and EBITDA, as adjusted, to
range from $4.0 million to $6.0 million. These revenue estimates include
approximately $1.5 million to $2.5 million of project related revenues.
For the full 2007 fiscal year, the Company is maintaining its previously
announced guidance and expects revenues to be in the range of $100.0
million to $105.0 million, EBITDA, as adjusted, to range from $18.0
million to $22.0 million and capital expenditures to range from $10.0
million to $11.0 million.
The Company will hold a conference call today, November 9, 2006 at 5:00
p.m. ET, to discuss all of the above. To hear the conference call live,
please dial 866-831-6162 (domestic) or 617-213-8852 (international) five
to ten minutes before the call and reference the passcode: TWW Call. A
simultaneous live Webcast of the call will be available over the
Internet at http://www.terremark.com,
under the Investor Relations heading.
A replay of the call will be available beginning on Thursday, November
9, 2006 at 7:00 p.m. (ET) by dialing 888-286-8010 (domestic) or
617-801-6888 (international) and providing the following replay code:
24550642. In addition, the Webcast will be available on the Company's
web site at http://www.terremark.com.
Additional information regarding the Company’s
financial performance as of and for the quarter ended September 30, 2006
and a comparison to the quarter ended September 30, 2005 can be found on
the attached balance sheet and statement of operations and in the Company’s
Quarterly Report on Form 10-Q.
About Terremark Worldwide, Inc.
Terremark Worldwide, Inc. (AMEX:TWW) is a leading operator of integrated
Internet exchanges and a global provider of managed IT infrastructure
solutions for government and private sectors. Terremark delivers its
portfolio of services from seven locations in the U.S., Europe and Latin
America and from four service aggregation and distribution locations,
which aggregate network traffic and distribute network-based services in
Europe and Asia to meet specific customer needs. Terremark’s
flagship facility, the NAP of the Americas, is the model for the
carrier-neutral Internet exchanges the company has in Santa Clara,
California (NAP of the Americas/West), in Sao Paulo, Brazil (NAP do
Brasil) and in Madrid, Spain (NAP de las Americas - Madrid). The
carrier-neutral NAP of the Americas is a state-of-the-art facility that
provides exchange point, colocation and managed services. Terremark is
headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, Florida USA,
(305) 856-3200. More information about Terremark Worldwide can be found
at www.terremark.com.
Statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Terremark’s
actual results may differ materially from those set forth in the
forward-looking statements due to a number of risks, uncertainties and
other factors, as discussed in Terremark’s
filings with the SEC. These factors include, without limitation,
Terremark’s ability to obtain funding for its
business plans, uncertainty in the demand for Terremark’s
services or products and Terremark’s ability
to manage its growth. Terremark does not assume any obligation to update
these forward-looking statements.
Non-GAAP Financial Measures
Terremark continues to provide all information required in accordance
with generally accepted accounting principles (GAAP), but it believes
that evaluating its ongoing operating results may be difficult if
limited to reviewing only GAAP financial measures. Accordingly,
Terremark uses non-GAAP financial measures, such as EBITDA, as adjusted.
In presenting these non-GAAP financial measures, Terremark excludes
certain non-cash items that it believes are not good indicators of the
Company's current or future operating performance. These non-cash items
are depreciation, amortization and stock-based compensation.
Terremark intends to calculate the various non-GAAP financial measures
in future periods on a basis consistent with its calculation of those
measures for the three and six months ended September 30, 2006 and 2005
and June 30, 2006, presented within this press release.
Terremark Worldwide, Inc.
Condensed Balance Sheets
September 30,
March 31,
2006
2006
Assets
Current assets
Cash and cash equivalents
$ 11,398,901
$ 20,401,934
Restricted cash
2,156,731
474,073
Accounts receivable, net of allowance for doubtful accounts
14,528,062
10,951,827
Current portion of capital lease receivable
2,707,053
2,507,029
Prepaid expenses and other current assets
3,450,587
2,558,942
Total current assets
34,241,334
36,893,805
Restricted cash
3,457,867
3,814,842
Property and equipment, net
130,414,114
129,893,318
Debt issuance costs
5,990,611
6,963,232
Other assets
3,871,676
2,695,616
Capital lease receivable, net of current portion
3,237,292
4,004,449
Intangibles, net of accumulated amortization
3,290,000
3,680,000
Goodwill
16,771,189
16,771,189
Total assets
$ 201,274,083
$ 204,716,451
Liabilities and Stockholder's Equity
Current liabilities
Current portion of debt and capital lease obligations
$ 2,214,111
$ 1,890,108
Accounts payable and other current liabilities
24,935,270
20,822,624
Interest payable
3,605,279
3,833,288
Series H redeemable convertible preferred stock
-
646,693
Total current liabilities
30,754,660
27,192,713
Mortgage payable, less current portion
45,675,385
45,795,552
Convertible debt
62,129,416
59,102,452
Derivative embedded within convertible debt, at estimated fair value
12,742,575
24,960,750
Notes payable, less current portion
27,118,078
25,614,140
Deferred rent and other liabilities
3,314,223
3,267,481
Capital leases obligations, less current portion
1,493,939
852,311
Deferred revenue
3,796,836
4,094,735
Total liabilities
187,025,112
190,880,134
Stockholders' equity
Series I convertible preferred stock
1
1
Common stock
44,594
44,490
Common stock warrants
12,946,698
13,251,660
Common stock options
582,004
582,004
Additional paid-in capital
291,941,003
291,607,528
Accumulated deficit
(283,737,786)
(283,823,243)
Accumulated other comprehensive loss
(131,484)
(317,756)
Treasury stock
(7,220,637)
(7,220,637)
Note receivable
(175,422)
(287,730)
Total stockholders' equity
14,248,971
13,836,317
Total liabilities and stockholders' equity
$ 201,274,083
$ 204,716,451
Terremark Worldwide, Inc.
Consolidated Statement of Operations
For the Three Months Ended
September 30,
June 30,
September 30,
2006
2006
2005
Revenue
Data center
$ 24,184,103
$ 21,403,381
$ 13,961,080
Operating revenues
24,184,103
21,403,381
13,961,080
Expenses
Data center operations, excluding depreciation
14,773,552
11,612,206
8,718,207
General and administrative
3,595,002
4,020,851
3,503,439
Sales and marketing
2,636,662
2,744,062
2,021,059
Depreciation and amortization
2,695,644
2,699,915
2,047,154
Operating expenses
23,700,860
21,077,034
16,289,859
Income (loss) from operations
483,243
326,347
(2,328,779)
Other income (expenses)
Change in fair value of derivatives embedded within convertible
debt
(3,298,200)
15,516,375
10,441,700
Interest expense
(6,871,705)
(6,617,585)
(6,305,142)
Interest income
278,513
303,081
439,261
Gain on sale of an asset
-
-
499,388
Other, net
(35,274)
661
(80,276)
Total other income (expenses)
(9,926,666)
9,202,532
4,994,931
Income (loss) before income taxes
(9,443,423)
9,528,879
2,666,152
Income taxes
-
-
-
Net income (loss)
(9,443,423)
9,528,879
2,666,152
Preferred dividend
(161,700)
(164,100)
(184,700)
Earnings allocation to participating security holders
-
(1,458,477)
(396,616)
Net income (loss) attributable to common stockholders
$ (9,605,123)
$ 7,906,302
$ 2,084,836
Net income (loss) per common share:
Basic
$ (0.22)
$ 0.18
$ 0.05
Diluted
$ (0.22)
$ (0.05)
$ (0.09)
Weighted average common shares outstanding - basic
43,719,659
43,677,412
42,890,383
Weighted average common shares outstanding - diluted
43,719,659
52,124,974
49,790,383
Reconciliation of Loss from
Operations to EBITDA, as
adjusted:
Income (loss) from operations
483,243
326,347
(2,328,779)
Depreciation and amortization
2,695,644
2,699,915
2,047,154
Stock based compensation
-
(65,052)
-
EBITDA, as adjusted
$ 3,178,887
$ 2,961,210
$ (281,625)
Calculation of Gross Profit Margin:
Operating revenues
24,184,103
21,403,381
13,961,080
Less:
Data center operations, excluding depreciation
14,773,552
11,612,206
8,718,207
Gross Profit
$ 9,410,551
$ 9,791,175
$ 5,242,873
Gross Profit Margin as a % of operating revenues
39%
46%
38%
Terremark Worldwide, Inc. (AMEX:TWW):
-- Revenues increase 73% year over year, 13% quarter over quarter
-- Adds 39 new customers including NetLine Communications Corp.,
Pacific National Bank and the South Florida Water Management
District
-- Existing customer expansions include the Broward Community
College, Citrix Systems, Inc., Cross Country Healthcare,
Facebook, IDT Domestic Telecom and Verisign Global Registry
Services
Terremark Worldwide, Inc. (AMEX:TWW), a leading operator of
integrated Internet exchanges and a global provider of managed IT
infrastructure solutions for government and private sectors, today
reported its results for the quarter ended September 30, 2006.
Total revenues for the quarter ended September 30, 2006 were $24.2
million, exceeding guidance of $22.0 million to $23.0 million and
representing an increase of 13% over the previous quarter and 73% over
the same period the prior year. Total revenues for the quarter ended
September 30, 2006 included $3.7 million of project type revenues
related to the resale of equipment and consulting projects.
EBITDA, as adjusted, for the quarter ended September 30, 2006 was
$3.2 million, compared to EBITDA, as adjusted, of $3.0 million the
prior quarter. EBITDA, as adjusted, also exceeded guidance of $2.0
million to $3.0 million. EBITDA, as adjusted, for the quarter ended
September 30, 2006 included $1.1 million related to the project type
revenue. EBITDA, as adjusted, is defined as income (loss) from
operations less depreciation, amortization and stock based
compensation. EBITDA, as adjusted, should be considered in addition
to, but not in lieu of, income (loss) from operations reported under
GAAP.
"We are pleased with the results of the quarter, particularly the
growth and profitability of our recurring revenue business, which
represented over 70% of our EBITDA in the quarter," said Manuel D.
Medina, Chairman and CEO of Terremark Worldwide, Inc. "We also saw
strong growth in our managed service offerings, where we are gaining
traction in both the US and Europe. Our managed services offerings are
a key differentiator with customers often indicating they selected
Terremark as their data center outsourcing partner because of our full
suite of product offerings."
Mr. Medina concluded, "We believe the results of the quarter speak
to the strength of our core business, and we look to leverage this
success through our stated strategy to expand our footprint in
California and the Washington D.C. area."
Data center expenses were $14.8 million for the quarter ended
September 30, 2006. Gross profit margins, excluding depreciation and
amortization, were 39% during the September 30, 2006 quarter.
As of September 30, 2006, Terremark's cash and cash equivalents
were $11.4 million and working capital of approximately $3.5 million.
Total colocation space utilization increased to 15.7% as of
September 30, 2006 from 12.9% as of June 30, 2006. Utilization of
built-out colocation space increased to 56.3% as of September 30, 2006
from 46.2% as of June 30, 2006. Additionally, utilization of total net
collocation space based on both deployed and yet to be deployed
customers was 16.2% at September 30, 2006, an increase from 15.3% at
June 30, 2006.
Cross connects billed to customers increased to 4,865 as of
September 30, 2006 from 4,245 the previous quarter and 3,182 a year
earlier, representing an increase of 15% and 53%, respectively.
During the quarter ended September 30, 2006, Terremark added 39
new customers, for a total of 566 customers at the end of the period.
Terremark booked $10.0 million of new annual contract value during the
quarter ended September 30, 2006. Over 70% of the bookings during the
September 2006 quarter were generated from existing customers.
For the quarter ended September 30, 2006, annualized data center
services revenue per utilized square foot decreased slightly to $1,827
compared to $1,848 for the previous quarter. For the quarter ended
September 30, 2006, data center services revenue churn was less than
1% for the commercial sector and 0% churn for the federal government
sector. The Company defines churn as annualized data center services
revenue lost as a percentage of annualized data center services
revenue for the most recent quarter.
Medina added, "The second quarter was an important period, as we
demonstrated the continued strengthening of our business fundamentals
and are beginning to benefit from the leverage in our model."
Business Outlook
For the quarter ending December 31, 2006, the Company expects
revenue to range from $24.0 million to $26.0 million and EBITDA, as
adjusted, to range from $4.0 million to $6.0 million. These revenue
estimates include approximately $1.5 million to $2.5 million of
project related revenues.
For the full 2007 fiscal year, the Company is maintaining its
previously announced guidance and expects revenues to be in the range
of $100.0 million to $105.0 million, EBITDA, as adjusted, to range
from $18.0 million to $22.0 million and capital expenditures to range
from $10.0 million to $11.0 million.
The Company will hold a conference call today, November 9, 2006 at
5:00 p.m. ET, to discuss all of the above. To hear the conference call
live, please dial 866-831-6162 (domestic) or 617-213-8852
(international) five to ten minutes before the call and reference the
passcode: TWW Call. A simultaneous live Webcast of the call will be
available over the Internet at http://www.terremark.com, under the
Investor Relations heading.
A replay of the call will be available beginning on Thursday,
November 9, 2006 at 7:00 p.m. (ET) by dialing 888-286-8010 (domestic)
or 617-801-6888 (international) and providing the following replay
code: 24550642. In addition, the Webcast will be available on the
Company's web site at http://www.terremark.com.
Additional information regarding the Company's financial
performance as of and for the quarter ended September 30, 2006 and a
comparison to the quarter ended September 30, 2005 can be found on the
attached balance sheet and statement of operations and in the
Company's Quarterly Report on Form 10-Q.
About Terremark Worldwide, Inc.
Terremark Worldwide, Inc. (AMEX:TWW) is a leading operator of
integrated Internet exchanges and a global provider of managed IT
infrastructure solutions for government and private sectors. Terremark
delivers its portfolio of services from seven locations in the U.S.,
Europe and Latin America and from four service aggregation and
distribution locations, which aggregate network traffic and distribute
network-based services in Europe and Asia to meet specific customer
needs. Terremark's flagship facility, the NAP of the Americas, is the
model for the carrier-neutral Internet exchanges the company has in
Santa Clara, California (NAP of the Americas/West), in Sao Paulo,
Brazil (NAP do Brasil) and in Madrid, Spain (NAP de las Americas -
Madrid). The carrier-neutral NAP of the Americas is a state-of-the-art
facility that provides exchange point, colocation and managed
services. Terremark is headquartered at 2601 S. Bayshore Drive, 9th
Floor, Miami, Florida USA, (305) 856-3200. More information about
Terremark Worldwide can be found at www.terremark.com.
Statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Terremark's actual results
may differ materially from those set forth in the forward-looking
statements due to a number of risks, uncertainties and other factors,
as discussed in Terremark's filings with the SEC. These factors
include, without limitation, Terremark's ability to obtain funding for
its business plans, uncertainty in the demand for Terremark's services
or products and Terremark's ability to manage its growth. Terremark
does not assume any obligation to update these forward-looking
statements.
Non-GAAP Financial Measures
Terremark continues to provide all information required in
accordance with generally accepted accounting principles (GAAP), but
it believes that evaluating its ongoing operating results may be
difficult if limited to reviewing only GAAP financial measures.
Accordingly, Terremark uses non-GAAP financial measures, such as
EBITDA, as adjusted. In presenting these non-GAAP financial measures,
Terremark excludes certain non-cash items that it believes are not
good indicators of the Company's current or future operating
performance. These non-cash items are depreciation, amortization and
stock-based compensation.
Terremark intends to calculate the various non-GAAP financial
measures in future periods on a basis consistent with its calculation
of those measures for the three and six months ended September 30,
2006 and 2005 and June 30, 2006, presented within this press release.
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*T
Terremark Worldwide, Inc.
Condensed Balance Sheets
September 30, March 31,
2006 2006
------------- -------------
Assets
Current assets
Cash and cash equivalents $11,398,901 $20,401,934
Restricted cash 2,156,731 474,073
Accounts receivable, net of allowance for
doubtful accounts 14,528,062 10,951,827
Current portion of capital lease
receivable 2,707,053 2,507,029
Prepaid expenses and other current assets 3,450,587 2,558,942
------------- -------------
Total current assets 34,241,334 36,893,805
Restricted cash 3,457,867 3,814,842
Property and equipment, net 130,414,114 129,893,318
Debt issuance costs 5,990,611 6,963,232
Other assets 3,871,676 2,695,616
Capital lease receivable, net of current
portion 3,237,292 4,004,449
Intangibles, net of accumulated
amortization 3,290,000 3,680,000
Goodwill 16,771,189 16,771,189
------------- -------------
Total assets $201,274,083 $204,716,451
============= =============
Liabilities and Stockholder's Equity
Current liabilities
Current portion of debt and capital lease
obligations $2,214,111 $1,890,108
Accounts payable and other current
liabilities 24,935,270 20,822,624
Interest payable 3,605,279 3,833,288
Series H redeemable convertible preferred
stock - 646,693
------------- -------------
Total current liabilities 30,754,660 27,192,713
Mortgage payable, less current portion 45,675,385 45,795,552
Convertible debt 62,129,416 59,102,452
Derivative embedded within convertible
debt, at estimated fair value 12,742,575 24,960,750
Notes payable, less current portion 27,118,078 25,614,140
Deferred rent and other liabilities 3,314,223 3,267,481
Capital leases obligations, less current
portion 1,493,939 852,311
Deferred revenue 3,796,836 4,094,735
------------- -------------
Total liabilities 187,025,112 190,880,134
------------- -------------
Stockholders' equity
Series I convertible preferred stock 1 1
Common stock 44,594 44,490
Common stock warrants 12,946,698 13,251,660
Common stock options 582,004 582,004
Additional paid-in capital 291,941,003 291,607,528
Accumulated deficit (283,737,786) (283,823,243)
Accumulated other comprehensive loss (131,484) (317,756)
Treasury stock (7,220,637) (7,220,637)
Note receivable (175,422) (287,730)
------------- -------------
Total stockholders' equity 14,248,971 13,836,317
------------- -------------
Total liabilities and stockholders'
equity $201,274,083 $204,716,451
============= =============
*T
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Terremark Worldwide, Inc.
Consolidated Statement of Operations
For the Three Months Ended
----------------------------------------
September 30, June 30, September 30,
2006 2006 2005
------------- ------------ -------------
Revenue
Data center $24,184,103 $21,403,381 $13,961,080
------------- ------------ -------------
Operating revenues 24,184,103 21,403,381 13,961,080
------------- ------------ -------------
Expenses
Data center operations,
excluding depreciation 14,773,552 11,612,206 8,718,207
General and administrative 3,595,002 4,020,851 3,503,439
Sales and marketing 2,636,662 2,744,062 2,021,059
Depreciation and amortization 2,695,644 2,699,915 2,047,154
------------- ------------ -------------
Operating expenses 23,700,860 21,077,034 16,289,859
------------- ------------ -------------
Income (loss) from
operations 483,243 326,347 (2,328,779)
------------- ------------ -------------
Other income (expenses)
Change in fair value of
derivatives embedded within
convertible debt (3,298,200) 15,516,375 10,441,700
Interest expense (6,871,705) (6,617,585) (6,305,142)
Interest income 278,513 303,081 439,261
Gain on sale of an asset - - 499,388
Other, net (35,274) 661 (80,276)
------------- ------------ -------------
Total other income
(expenses) (9,926,666) 9,202,532 4,994,931
------------- ------------ -------------
Income (loss) before
income taxes (9,443,423) 9,528,879 2,666,152
Income taxes - - -
------------- ------------ -------------
Net income (loss) (9,443,423) 9,528,879 2,666,152
Preferred dividend (161,700) (164,100) (184,700)
Earnings allocation to
participating security
holders - (1,458,477) (396,616)
------------- ------------ -------------
Net income (loss) attributable
to common stockholders $(9,605,123) $7,906,302 $2,084,836
============= ============ =============
Net income (loss) per common
share:
Basic $(0.22) $0.18 $0.05
============= ============ =============
Diluted $(0.22) $(0.05) $(0.09)
============= ============ =============
Weighted average common shares
outstanding - basic 43,719,659 43,677,412 42,890,383
============= ============ =============
Weighted average common shares
outstanding - diluted 43,719,659 52,124,974 49,790,383
============= ============ =============
Reconciliation of Loss from
Operations to EBITDA, as
adjusted:
Income (loss) from operations 483,243 326,347 (2,328,779)
Depreciation and amortization 2,695,644 2,699,915 2,047,154
Stock based compensation - (65,052) -
------------- ------------ -------------
EBITDA, as adjusted $3,178,887 $2,961,210 $(281,625)
============= ============ =============
Calculation of Gross Profit
Margin:
Operating revenues 24,184,103 21,403,381 13,961,080
Less:
Data center operations,
excluding depreciation 14,773,552 11,612,206 8,718,207
------------- ------------ -------------
Gross Profit $9,410,551 $9,791,175 $5,242,873
============= ============ =============
Gross Profit Margin as a % of
operating revenues 39% 46% 38%
============= ============ =============
*T