Pihana competitors' woes
Advertiser Staff
The data center sector is getting slammed these days. A look at competitors shows the pitfalls of overexpansion:
Exodus
• 40 data centers worldwide
• Stock rose as high as $80-plus per share; now it's down around $2. Lost $650 million in first quarter 2001 on $350 million in revenues. Expenses will be about $900 million this year. Has laid off 675 workers (15 percent). Revenue estimates lowered by 12 percent on June 21. Debts exceed $3 billion.
iAsiaWorks
• Data centers in South Korea, Taiwan, Hong Kong
• Stock rose as high as $12.50 shortly after its initial public offering; it fell June 25 to 17 cents. Company's Hong Kong network of three data centers has been liquidated. On June 22 announced 127 layoffs; company has laid off 227 people this year, or more than two-thirds of its work force. Lost $34.6 million in first-quarter 2001 on $9.6 million in revenues.
Mid-Pacific Broadband Inc.
• One data center planned: Honolulu
• Had proposed to build a 100,000-square-foot center on a 57-acre plot of Campbell Estate land in Kapolei. Has been unable to raise capital for the project, which was to cost more than $125 million.
PSINet
• Owns an extensive data center network
• Stock fell from $27.50 to 5 cents between June 27, 2000, and June 26. Multinational Internet service provider and 25 of its subsidiaries filed for bankruptcy protection on May 31. Lost $3.83 billion in 2000 on revenues of $995 million. Has cash assets of about $300 million versus liabilities of $4.3 billion. Had defaulted on $2.7 billion of debt.
Colo.com
• 22 data centers across the United States
• Private data center company has filed for bankruptcy protection.
... And how is Pihana different?
• 5 data centers: Los Angeles, Honolulu, Hong Kong, Tokyo, Singapore
• Raised $240 million in venture funds in 2000. By June, had spent about $150 million of it. Occupancy at centers is less than 10 percent.
• But key differences from its competitors: No debt and regional competition has proven lighter than expected.
