Provides Revenue and EBITDA Guidance for Q1 2009
ATLANTA, March 31, 2009 — Internap Network Services Corporation (NASDAQ: INAP), a global provider of fast, reliable, end-to-end Internet business solutions, today announced that the company will implement a restructuring program designed to reduce operating costs.
As part of this effort, Internap will reduce its workforce by approximately 10 percent (approximately 45 employees). These reductions are primarily in back-office staff functions and include the elimination of certain senior management positions. When completed, this program will generate approximately $5 million in annualized operating expense savings. Internap expects to incur costs associated with this restructuring of approximately $1.2 million, the majority of which will be recorded in the first quarter of 2009.
“These actions simplify our organization and enable us to focus and invest in our core competencies including: customer support, engineering, and sales,” said Eric Cooney, President and Chief Executive Officer. “By acting decisively, we better prepare the company to manage through a tough economy, improve results and increase value for customers and shareholders.”
In addition to announcing the cost reduction plan, Internap also provided revenue and EBITDA estimates for first quarter 2009. Revenue for the quarter is expected to be in the range of $62 to $65 million and adjusted EBITDA is expected to total between $4 and $5 million.