December 6, 2006
Equinix Announces End to SEC Stock Option Inquiry
Foster City, CA — December 6, 2006 — Equinix, Inc. (Nasdaq: EQIX), the leading provider of network-neutral data centers and Internet exchange services, today announced that the United States Securities and Exchange Commission (SEC) has formally notified Equinix that its investigation of Equinix's stock option granting practices has been terminated and that no enforcement action has been recommended.
As previously disclosed in June 2006, Equinix received an informal inquiry from the SEC relating to its stock option grants and practices. Prior to receiving this request, the Audit Committee of the Equinix Board of Directors commenced an internal review and analysis of historical stock option practices and related accounting with the assistance of independent outside legal counsel. In August 2006, the independent review by the Audit Committee was completed.
The SEC's recent notification followed a September 7, 2006 presentation by the Audit Committee and its legal counsel to the SEC staff regarding the results of the Audit Committee's investigation.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.