Managed Hoster Internap Scores Healthy First Quarter

Internap (News - Alert) Network Services Corp. is in a ton of services businesses, including colocation and managed hosting, and today boasts some 3,700 customers. Business is pretty good this latest quarter across most of the boards, with first quarter 2013 revenue up 4 percent to nearly $70 million and an EBITA up 16 percent to $14.1 million.

“We begin 2013 with solid first quarter results reflecting our continued shift to data center services including colocation, hosting and cloud offerings. In the first quarter, we successfully drove sequential and year-over-year growth in our data center services segment while also delivering record data center services segment margin,” said Eric Cooney (News - Alert), president and chief executive officer of Internap. “With compelling new offerings planned for 2013, such as our recent ‘cloudy colo’ announcement, we expect to further differentiate Internap’s data center services and sustain long-term profitable growth for the business.”

Results from key businesses were mixed. On the data center services side, revenue was up 11 percent compared to a year ago, largely based on good news form cloud services, hosting and colocation. Total revenue was nearly $45 million.

The IP services business was more of a downer, with revenue down 7 percent to $25.3 for the quarter.

Internap, founded in 1996, now has a broad range of managed hosting services including:

• Managed Data Protection that manages backups.
• Managed Storage that includes SANs, direct attached storage and NAS.
• Private and Public Cloud based on VMware infrastructure.
• Private Network Access Points that give access to major backbone carriers.

Last quarter and Internap’s full fiscal 2012 was also good. Revenue for fiscal 2012 was $273 million, with an EBITA of $51.9 million.

The company was also in a building mood last year, adding some 26,000 square feet of data center space.

Internap jumped into the colocation market in 2011 when it bought Voxel (News - Alert) Holdings, which sold cloud and hosting services for the enterprise. Internap now also offers a content delivery network (CDN), cloud services, dedicated hosting and managed hosting.