(Reuters) - Equinix Inc <EQIX.O> posted a first-quarter profit well below analysts' expectations, largely due to a weak Japanese yen, and the data center operator forecast lower-than-expected second-quarter revenue, sending its shares down 8.5 percent.
The company said it expected revenue of $530 million to $534 million for the second quarter. Analysts on average had estimated $543.6 million, according to Thomson Reuters I/B/E/S.
Equinix reaffirmed its full-year revenue expectations of more than $2.2 billion after factoring in about $21 million in negative currency movements.
The yen has been depreciating sharply against the dollar, falling since the Bank of Japan unleashed an intense burst of monetary stimulus earlier this month.
IBM Corp <IBM.N> last week posted a rare quarterly earnings miss, hurt partly by the sliding yen.
"We've got pretty significant foreign exchange headwinds," Equinix CEO Steve Smith told Reuters.
The yen, which represents 3 percent of Equinix's global revenue, fell 14 percent against the company's budget rates over the quarter, the company said.
"This will be new news to the Street. They haven't calculated this order of magnitude of forex headwinds," Smith said.
Equinix, which counts IBM, Amazon Inc <AMZN.O>, Facebook Inc <FB.O>, Microsoft Corp <MSFT.O> and AT&T Inc <T.N> among its customers, gets 40 percent of its revenue from outside the United States.
Its competitors in the data center market include Rackspace Hosting Inc <RAX.N> and Digital Realty Trust Inc <DLR.N>.
Monthly recurring revenue (MRR) churn, a key metric for Equinix that measures the predictability of its business, rose to 3.7 percent in the first quarter, from 3 percent in the fourth quarter.
Net income rose to $35.9 million, or 71 cents per share, in the first quarter from $34.5 million, or 71 cents per share, a year earlier. Revenue rose 17 percent to $519.5 million.
Analysts on average had expected an adjusted profit of 78 cents per share on revenue of $521.8 million, according to Thomson Reuters I/B/E/S.
Equinix's shares fell to $198 in extended trading. They closed down 1.4 percent at $216.38 on the Nasdaq earlier on Wednesday.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Don Sebastian)
Rush Limbaugh: Ted Cruz is the closest we’ve gotten to Ronald Reagan in our lifetimes
Meryl Streep just solved the #OscarsSoWhite dilemma in one sentence
Ann Coulter - New Jersey Man Slays Child
GM Fires Concealed Carrying Valet Who Saved Autoworker Under Attack
New Jersey Man Slays Child | Human Events
Political Calculations - Gasoline Prices, Minimum Wage Hikes Define Trends for California's New Jobless Claims
Marco Rubio Looks To A Brokered Convention For the Nomination | RedState