Switch & Data Facilities Company, Inc Q3 2008 Earnings Call Transcript

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2008-10-29 08:43:13.0

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Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Greg Miller – Deutsche Bank.

Greg Miller – Deutsche Bank

Maybe if you can just give us an idea, an update of what is going with the New Jersey expansion in a little detail and when we should expect to see significant cabinet expansion coming on there and then maybe talk a little bit about your Atlanta announcement earlier this quarter and finally, just to comment on the CapEx for next year in the pretty substantial decline year over year with Atlanta coming on and what I would expect to the continued expansion in New Jersey, why would we will be expecting CapEx to be going down so much?

Keith Olsen

Sure, Greg. Let me first address the New Jersey. New Jersey opened up in October. We had strong demand, customers installs are going on as we speak, to funnel billed coming in from our sales report so we are thrilled with first of all with the fit and finish of the site for phase one, the customers that we have been touring through the facility have appreciated that. I know we put out a press release that talks about the few of the customers of course that are willing to be part of the press releases. I can share with you that a number of other leading internet companies, large scale internet companies have also selected our New Jersey site for their expansions.

As it relates to our next phase, that is the work that our construction engineering teams are working on and we expect to bring on the next level of capacities to New Jersey towards the later part of 2009 which is consistent with the long term plan. As it relates to Atlanta, Atlanta is as seen in my kind of opening remarks, was really an opportunity for us to secure an excellent site for the future growth of our business. We expect that we will be adding those capacities late in 2010 and so I do not anticipate any significant or any capital applied to the Atlanta site in 2009 and with that, I will ask George to respond to your third part of question which is our CapEx guidance, George?

George Pollock

Sure, Greg. We spoke about $65 million of capital spend in 2009 and that is consistent with our comments that keeping eye both about our fully funded business plan and our ability to support our continued growth with our current balance sheet and operations from cash flow.

 

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