Holy shit, I haven’t seen anything this comical in a long time.
While actually grossing 140m more in fiscal ‘07, they netted 2m less than the previous year. Way to go guys!
Here is a neat little exert from from their S-1 that Merrill Lynch made them put in:
- We may be unable to manage our growth effectively
- Our physical infrastructure is concentrated in very few facilities, and any failure in our physical infrastructure or services could lead to significant costs and disruptions
- We may be unable to hire and retain qualified employees to support our growth strategy
- Our business is affected by changes in the state of the general economy, and a slowdown or downturn in the general economy could disproportionately affect the demand for our services
- We may not be able to compete successfully against current and future competitors
Current and noncurrent debt: $62.9M
“Services we provide are subject to failure resulting from numerous factors, including: Improper building maintenance by the landlords of the buildings in which our facilities are located;” I.E.: we don’t own any of our facilities.
Failure by us or our vendors to provide adequate service to our equipment.
“We do not own the facilities occupied by our current data centers, but occupy them pursuant to commercial leasing arrangements. The initial terms of our existing data center leases expire over a period ranging from 2008 to 2015, with each having at least one renewal period of five years. Upon the expiration or termination of our data center facility leases, we may not be able to renew these leases on terms acceptable to us, if at all.“
Wow, so one of their leases is up this year…
For more fun and excitement, you can read the full S-1 here: