x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
¨ |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
DELAWARE
|
|
91-2145721
|
(State
or Other Jurisdiction of
|
|
(I.R.S.
Employer
|
Incorporation
or Organization)
|
|
Identification
Number)
|
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o |
Pages
|
|||
PART
I. FINANCIAL INFORMATION
|
|||
3
|
|||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
13
|
|||
23
|
|||
23
|
|||
PART
II. OTHER INFORMATION
|
|||
24
|
|||
24
|
|||
25
|
|||
26
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Revenue
|
$
|
43,905
|
$
|
37,571
|
$
|
86,530
|
$
|
75,426
|
|||||
|
|||||||||||||
Costs
and expense:
|
|||||||||||||
Direct
cost of network and sales, exclusive of depreciation and amortization
shown below
|
23,744
|
19,247
|
46,098
|
39,225
|
|||||||||
Direct
cost of customer support
|
2,769
|
2,608
|
5,666
|
5,269
|
|||||||||
Product
development
|
1,158
|
1,105
|
2,383
|
2,550
|
|||||||||
Sales
and marketing
|
7,072
|
6,587
|
14,042
|
12,913
|
|||||||||
General
and administrative
|
5,080
|
5,269
|
10,270
|
9,759
|
|||||||||
Depreciation
and amortization
|
3,849
|
3,724
|
7,643
|
7,129
|
|||||||||
Gain
on disposal of property and equipment
|
(117
|
)
|
(11
|
)
|
(114
|
)
|
(4
|
)
|
|||||
|
|||||||||||||
Total
operating costs and expense
|
43,555
|
38,529
|
85,988
|
76,841
|
|||||||||
|
|||||||||||||
Income
(loss) from operations
|
350
|
(958
|
)
|
542
|
(1,415
|
)
|
|||||||
|
|||||||||||||
Non-operating
(income) expense:
|
|||||||||||||
Interest
income
|
(520
|
)
|
(290
|
)
|
(944
|
)
|
(564
|
)
|
|||||
Interest
expense
|
232
|
373
|
483
|
747
|
|||||||||
(Income)
loss from equity method investment
|
(57
|
)
|
(7
|
)
|
(104
|
)
|
9
|
||||||
Other
(income) expense, net
|
(18
|
)
|
12
|
(147
|
)
|
10
|
|||||||
|
|||||||||||||
Total
non-operating (income) expense
|
(363
|
)
|
88
|
(712
|
)
|
202
|
|||||||
|
|||||||||||||
Income
(loss) before income taxes
|
713
|
(1,046
|
)
|
1,254
|
(1,617
|
)
|
|||||||
|
|||||||||||||
Income
taxes
|
—
|
—
|
—
|
—
|
|||||||||
Net
income (loss)
|
$
|
713
|
$
|
(1,046
|
)
|
$
|
1,254
|
$
|
(1,617
|
)
|
|||
Net
income (loss) per share:
|
|||||||||||||
Basic
|
$
|
0.02
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
(0.05
|
)
|
|||
Diluted
|
$
|
0.02
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
(0.05
|
)
|
|||
Shares
used in per share calculations:
|
|||||||||||||
Basic
|
34,465
|
33,845
|
34,384
|
33,832
|
|||||||||
Diluted
|
35,787
|
33,845
|
35,003
|
33,832
|
|||||||||
|
June
30,
2006
|
December
31,
2005
|
||||||
ASSETS
|
|
|
|||||
Current
assets:
|
|
|
|||||
Cash
and cash equivalents
|
$
|
38,339
|
$
|
24,434
|
|||
Short-term
investments in marketable securities
|
9,413
|
16,060
|
|||||
Accounts
receivable, net of allowance of $1,060 and $963,
respectively
|
19,622
|
19,128
|
|||||
Inventory
|
580
|
779
|
|||||
Prepaid
expenses and other assets
|
3,884
|
2,957
|
|||||
Total
current assets
|
71,838
|
63,358
|
|||||
Property
and equipment, net of accumulated depreciation and amortization of
$147,777 and $143,686, respectively
|
48,142
|
50,072
|
|||||
Investments
|
2,159
|
1,999
|
|||||
Intangible
assets, net of accumulated amortization of $18,389 and $18,100,
respectively
|
2,040
|
2,329
|
|||||
Goodwill
|
36,314
|
36,314
|
|||||
Deposits
and other assets
|
1,095
|
1,297
|
|||||
$
|
161,588
|
$
|
155,369
|
||||
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Notes
payable, current portion
|
$
|
4,375
|
$
|
4,375
|
|||
Accounts
payable
|
7,697
|
5,766
|
|||||
Accrued
liabilities
|
6,181
|
7,267
|
|||||
Deferred
revenue, current portion
|
2,654
|
2,737
|
|||||
Capital
lease obligations, current portion
|
582
|
559
|
|||||
Restructuring
liability, current portion
|
1,105
|
1,202
|
|||||
Total
current liabilities
|
22,594
|
21,906
|
|||||
Notes
payable, less current portion
|
5,469
|
7,656
|
|||||
Deferred
revenue, less current portion
|
680
|
533
|
|||||
Capital
lease obligations, less current portion
|
109
|
247
|
|||||
Restructuring
liability, less current portion
|
4,430
|
5,075
|
|||||
Deferred
rent
|
10,788
|
9,185
|
|||||
Other
long-term liabilities
|
1,069
|
1,039
|
|||||
Total
liabilities
|
45,139
|
45,641
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders'
equity:
|
|||||||
Series
A convertible preferred stock, $0.001 par value, 3,500 shares designated,
no shares issued or outstanding
|
—
|
—
|
|||||
Common
stock, $0.001 par value, 60,000 shares authorized, 34,646 and 34,168
shares issued and outstanding, respectively
|
35
|
34
|
|||||
Additional
paid-in capital
|
975,035
|
970,221
|
|||||
Deferred
stock compensation
|
—
|
(420
|
)
|
||||
Accumulated
deficit
|
(858,858
|
)
|
(860,112
|
)
|
|||
Accumulated
items of other comprehensive income
|
237
|
5
|
|||||
Total
stockholders' equity
|
116,449
|
109,728
|
|||||
$
|
161,588
|
$
|
155,369
|
|
Six
months ended
June
30,
|
||||||
|
2006
|
2005
|
|||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
||||||
Net
income (loss)
|
$
|
1,254
|
$
|
(1,617
|
)
|
||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
|||||||
Depreciation
and amortization
|
7,918
|
7,358
|
|||||
Gain
on disposal of assets
|
(114
|
)
|
(4
|
)
|
|||
Provision
for doubtful accounts
|
(119
|
)
|
648
|
||||
(Income)
loss from equity method investment
|
(104
|
)
|
9
|
||||
Non-cash
changes in deferred rent
|
1,603
|
1,296
|
|||||
Stock-based
compensation expense
|
3,079
|
—
|
|||||
Other,
net
|
—
|
(45
|
)
|
||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(375
|
)
|
(669
|
)
|
|||
Inventory
|
199
|
28
|
|||||
Prepaid
expenses, deposits and other assets
|
(725
|
)
|
329
|
||||
Accounts
payable
|
1,931
|
(4,440
|
)
|
||||
Accrued
liabilities
|
(1,086
|
)
|
(698
|
)
|
|||
Deferred
revenue
|
64
|
73
|
|||||
Accrued
restructuring charge
|
(742
|
)
|
(1,012
|
)
|
|||
|
|||||||
Net
cash provided by operating activities
|
12,783
|
1,256
|
|||||
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Purchases
of property and equipment
|
(5,543
|
)
|
(5,815
|
)
|
|||
Purchases
of investments in marketable securities
|
(4,215
|
)
|
(8,475
|
)
|
|||
Maturities
of marketable securities
|
10,956
|
8,806
|
|||||
Proceeds
from disposal of property and equipment
|
127
|
40
|
|||||
Other,
net
|
82
|
(258
|
)
|
||||
|
|||||||
Net
cash provided by (used in) investing activities
|
1,407
|
(5,702
|
)
|
||||
|
|||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Principal
payments on notes payable
|
(2,187
|
)
|
(3,462
|
)
|
|||
Payments
on capital lease obligations
|
(277
|
)
|
(250
|
)
|
|||
Proceeds
from exercise of stock options, employee stock purchase plan and
warrants
|
2,149
|
371
|
|||||
Other,
net
|
30
|
30
|
|||||
Net
cash used in financing activities
|
(285
|
)
|
(3,311
|
)
|
|||
|
|||||||
Net
increase (decrease) in cash and cash equivalents
|
13,905
|
(7,757
|
)
|
||||
Cash
and cash equivalents at beginning of period
|
24,434
|
33,823
|
|||||
|
|||||||
Cash
and cash equivalents at end of period
|
$
|
38,339
|
$
|
26,066
|
|||
|
|||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|||||||
|
|||||||
Cash
paid for interest, net of amounts capitalized
|
$
|
437
|
$
|
730
|
|||
Non-cash acquisition
of fixed assets
|
169
|
971
|
Common Stock
|
||||||||||||||||||||||
Six
months ended June 30, 2006:
|
Shares
|
Par
Value
|
Additional
Paid-In Capital
|
Deferred Stock
Compensation
|
Accumulated
Deficit
|
Accumulated
Items
of Other Comprehensive Income
|
Total
Stockholders' Equity
|
|||||||||||||||
Balance,
December 31, 2005
|
34,168
|
$
|
34
|
$
|
970,221
|
$
|
(420
|
)
|
$
|
(860,112
|
)
|
$
|
5
|
$
|
109,728
|
|||||||
Net
income
|
—
|
—
|
—
|
—
|
1,254
|
—
|
1,254
|
|||||||||||||||
Change
in unrealized gains and losses on investments
|
—
|
—
|
—
|
—
|
—
|
94
|
94
|
|||||||||||||||
Foreign
currency translation adjustment
|
—
|
—
|
—
|
—
|
—
|
138
|
138
|
|||||||||||||||
Total
comprehensive income (*)
|
—
|
—
|
—
|
—
|
—
|
—
|
1,486
|
|||||||||||||||
Reclassification
of deferred stock compensation resulting from implementation of FAS
123R
|
—
|
—
|
(420
|
)
|
420
|
—
|
—
|
—
|
||||||||||||||
Exercise
of stock options, including the Employee Stock Purchase Plan
|
370
|
1
|
1,746
|
—
|
—
|
—
|
1,747
|
|||||||||||||||
Stock-based
compensation
|
46
|
—
|
3,086
|
3,086
|
||||||||||||||||||
Exercise
of warrants
|
62
|
—
|
402
|
—
|
—
|
—
|
402
|
|||||||||||||||
Balance,
June 30, 2006
|
34,646
|
$
|
35
|
$
|
975,035
|
$
|
—
|
$
|
(858,858
|
)
|
$
|
237
|
$
|
116,449
|
Common
Stock
|
|
||||||||||||||||||
Six
months ended June 30, 2005:
|
Shares
|
Par
Value |
Additional
Paid-In
Capital
|
Accumulated
Deficit
|
Accumulated
Items
of Other
Comprehensive
Loss
|
Total
Stockholders' Equity
|
|||||||||||||
Balance,
December 31, 2004
|
33,815
|
$
|
34
|
$
|
968,255
|
$
|
(855,148
|
)
|
$
|
597
|
$
|
113,738
|
|||||||
Net
loss
|
—
|
—
|
—
|
(1,617
|
)
|
—
|
(1,617
|
)
|
|||||||||||
Change
in unrealized gains and losses on investments
|
—
|
—
|
—
|
—
|
(95
|
)
|
(95
|
)
|
|||||||||||
Foreign
currency translation adjustment
|
—
|
—
|
—
|
—
|
(283
|
)
|
(283
|
)
|
|||||||||||
Total
comprehensive loss (*)
|
—
|
—
|
—
|
—
|
—
|
(1,995
|
)
|
||||||||||||
Exercise
of stock options, including the Employee Stock Purchase
Plan
|
95
|
—
|
371
|
—
|
—
|
371
|
|||||||||||||
Balance,
June 30, 2005
|
33,910
|
$
|
34
|
$
|
968,626
|
$
|
(856,765
|
)
|
$
|
219
|
$
|
112,114
|
Three
months ended
|
Six
months ended
|
|||||||||
March
31,
2006
|
June
30,
2005
|
June
30,
2005
|
||||||||
Direct
cost of network and sales,
exclusive
of deprecation and
amortization
shown below:
|
||||||||||
Previously
reported
|
$
|
22,217
|
$
|
19,109
|
$
|
38,996
|
||||
Reclassification
|
138
|
138
|
229
|
|||||||
As
reclassified
|
$
|
22,355
|
$
|
19,247
|
$
|
39,225
|
||||
Depreciation
and amortization:
|
||||||||||
Previously
reported
|
$
|
3,932
|
$
|
3,862
|
$
|
7,358
|
||||
Reclassification
|
(138
|
)
|
(138
|
)
|
(229
|
)
|
||||
As
reclassified
|
$
|
3,794
|
$
|
3,724
|
$
|
7,129
|
Three
months ended
|
|
Six
months ended
|
|||||||||||
June
30,
2006
|
June
30,
2005
|
June
30,
2006
|
June
30,
2005
|
||||||||||
Direct
cost of network and sales
|
$
|
3,043
|
$
|
2,847
|
$
|
6,012
|
$
|
5,332
|
|||||
Other
depreciation and
amortization
|
806
|
877
|
1,631
|
1,797
|
|||||||||
Total
deprecation and
amortization
|
$
|
3,849
|
$
|
3,724
|
$
|
7,643
|
$
|
7,129
|
Periods
ended June 30, 2006
|
|||||||
Three
months
|
Six
months
|
||||||
Direct
cost of customer support
|
$
|
214
|
$
|
592
|
|||
Product
development
|
174
|
332
|
|||||
Sales
and marketing
|
608
|
1,194
|
|||||
General
and administrative
|
572
|
961
|
|||||
Total
stock-based compensation expense included in net income
|
$
|
1,568
|
$
|
3,079
|
Periods
ended June 30, 2005
|
|||||||
Three
months
|
Six
months
|
||||||
Net
loss, as reported
|
$
|
(1,046
|
)
|
$
|
(1,617
|
)
|
|
Less
total stock-based employee compensation expense determined under
fair
value based method for all awards
|
(3,175
|
)
|
(6,043
|
)
|
|||
Pro
forma net loss
|
$
|
(4,221
|
)
|
$
|
(7,660
|
)
|
|
Basic
and diluted net loss per share:
|
|||||||
As
reported
|
$
|
(0.03
|
)
|
$
|
(0.05
|
)
|
|
Pro
forma
|
$
|
(0.12
|
)
|
$
|
(0.23
|
)
|
June
30,
2006
|
June
30,
2005
|
||||||
Expected
volatility
|
114
|
%
|
108
|
%
|
|||
Expected
life
|
4
years
|
4
years
|
|||||
Risk-free
interest rate
|
5.1
|
%
|
4.4
|
%
|
|||
Dividend
yield
|
—
|
—
|
Shares
(000)
|
Weighted
- Average
Exercise Price |
Weighted-Average
Remaining Contractual Term (in years)
|
Aggregate
Intrinsic Value
(000)
|
||||||||||
Balance,
January 1, 2006
|
3,556
|
$
|
13.49
|
||||||||||
Granted
|
540
|
7.24
|
|||||||||||
Exercised
|
(273
|
)
|
5.13
|
||||||||||
Forfeited
|
(616
|
)
|
15.59
|
||||||||||
|
|||||||||||||
Outstanding
at June 30, 2006
|
3,207
|
$
|
12.74
|
7.8
|
$
|
9,943
|
|||||||
Exercisable
at June 30, 2006
|
1,690
|
$
|
16.48
|
6.8
|
$
|
4,243
|
|||||||
|
Shares
|
Weighted-Average
Grant Date Fair Value
|
|||||
Nonvested,
January 1, 2006
|
100
|
$
|
4.80
|
||||
Granted
|
566
|
6.15
|
|||||
Vested
|
(46
|
)
|
5.38
|
||||
Forfeited
|
(33
|
)
|
5.30
|
||||
|
|||||||
Nonvested,
June 30, 2006
|
587
|
$
|
5.21
|
Three
months ended June 30,
|
Six
months ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Stock
options
|
$
|
6.46
|
$
|
3.42
|
$
|
5.27
|
$
|
3.62
|
|||||
Restricted
stock
|
10.30
|
—
|
6.15
|
—
|
Stock
Options
|
Restricted
Stock
|
Total
|
||||||||
Unrecognized
compensation
|
$
|
8,950
|
$
|
3,537
|
$
|
12,487
|
||||
Weighted-average
remaining recognition period (in years)
|
1.5
|
1.8
|
1.6
|
Three
months ended June 30,
|
Six
months ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
income (loss)
|
$
|
713
|
$
|
(1,046
|
)
|
$
|
1,254
|
$
|
(1,617
|
)
|
|||
|
|||||||||||||
Weighed
average shares outstanding, basic
|
34,465
|
33,845
|
34,384
|
33,832
|
|||||||||
|
|||||||||||||
Effect
of dilutive securities:
|
|||||||||||||
Stock
options
|
703
|
—
|
402
|
—
|
|||||||||
Restricted
stock awards
|
325
|
—
|
217
|
—
|
|||||||||
Warrants
|
294
|
—
|
—
|
—
|
|||||||||
Weighted
average shares outstanding, diluted
|
35,787
|
33,845
|
35,003
|
33,832
|
|||||||||
Basic
net income (loss) per share
|
$
|
0.02
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
(0.05
|
)
|
|||
Diluted
net income (loss) per share
|
$
|
0.02
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
(0.05
|
)
|
|||
Anti-dilutive
securities not included in diluted net income (loss) per share
calculation:
|
|||||||||||||
Stock
options
|
1,437
|
3,946
|
1,946
|
3,946
|
|||||||||
Restricted
stock awards
|
—
|
—
|
15
|
—
|
|||||||||
Warrants
|
—
|
1,499
|
1,385
|
1,499
|
|||||||||
Total
anti-dilutive securities
|
1,437
|
5,445
|
3,346
|
5,445
|
Restructuring
liability balance, December 31, 2005
|
$
|
6,277
|
||
Less:
Cash reductions relating to real estate activities
|
(742
|
)
|
||
Restructuring
liability balance, June
30, 2006
|
$
|
5,535
|
· |
costs
for connecting to and accessing Internet network service providers
and
competitive local exchange
providers;
|
· |
costs
related to operating and maintaining network access points and data
centers;
|
· |
costs
incurred for providing additional third-party services to our
customers;
|
· |
costs
of Flow Control Platform solution and similar products sold
and;
|
· |
amortization
of technology based intangible
assets.
|
|
Three
months ended June
30,
|
||||||
|
2006
|
2005
|
|||||
Revenues:
|
|
|
|||||
Internet
Protocol (IP) Services
|
$
|
25,820
|
$
|
25,039
|
|||
Data
Center Services
|
12,884
|
8,513
|
|||||
Other/Partner
Services
|
5,201
|
4,019
|
|||||
Total
Revenues
|
$
|
43,905
|
$
|
37,571
|
Direct
cost of customer support
|
$
|
214
|
||
Product
development
|
174
|
|||
Sales
and marketing
|
608
|
|||
General
and administrative
|
572
|
|||
Total
stock-based compensation
|
$
|
1,568
|
|
Six
months ended
June
30,
|
||||||
|
2006
|
2005
|
|||||
Revenues:
|
|
|
|||||
Internet
Protocol (IP) Services
|
$
|
51,131
|
$
|
49,938
|
|||
Data
Center Services
|
23,912
|
16,594
|
|||||
Other/Partner
Services
|
11,487
|
8,894
|
|||||
Total
Revenues
|
$
|
86,530
|
$
|
75,426
|
Direct
cost of customer support
|
$
|
592
|
||
Product
development
|
332
|
|||
Sales
and marketing
|
1,194
|
|||
General
and administrative
|
961
|
|||
Total
stock-based compensation
|
$
|
3,079
|
· |
our
ability to maintain profitability;
|
· |
our
ability to secure adequate funding;
|
· |
our
ability to compete against existing and future
competitors;
|
· |
pricing
pressures;
|
· |
the
availability of services from Internet network service providers
and local
access providers on favorable terms or at
all;
|
· |
failure
of suppliers to deliver their products and services as
agreed;
|
· |
failures
in our network operations centers, network access points or computer
systems;
|
· |
fluctuations
in our operating results;
|
· |
our
ability to respond to technological
change;
|
· |
evolution
of the high performance Internet connectivity and services
industry;
|
· |
our
ability to deploy new access points in a cost-efficient
manner;
|
· |
risks
associated with international operations;
|
· |
our
ability to attract and retain qualified
personnel;
|
· |
our
ability to protect our intellectual
property;
|
· |
litigation
based on claims of infringement of third-party intellectual property
rights;
|
· |
our
ability to successfully complete future
acquisitions;
|
· |
our
ability to protect ourselves and our customers from security
breaches;
|
· |
the
incurrence of additional restructuring
charges;
|
· |
the
success of our operational
restructurings;
|
· |
our
ability to operate in light of restrictions in our credit facility,
including our ability to maintain ratios set forth in the credit
facility;
|
· |
effects
of terrorist activity;
|
· |
government
regulation of the Internet;
|
· |
risks
associated with material weaknesses in our internal controls identified
as
part of our evaluation under section 404 of the Sarbanes-Oxley Act
of 2002
at any time in the future;
|
· |
changes
in estimates regarding disputed costs;
|
· |
the
dilutive effects on our stock price of outstanding stock options
and
warrants;
|
· | future sales of stock; and |
· | volatility of our stock price. |
(a)
|
|
The
Annual Meeting of Shareholders of Internap Network Services Corporation
was held on June 21, 2006.
|
|
||||||||||
|
|
||||||||||||
(b)
|
|
The
names of all directors are set forth below. The proxies for the meeting
were solicited pursuant to Regulation 14A under the Securities
Exchange Act of 1934. There were no solicitations in opposition to
the
nominees as listed in the proxy and all such nominees were
elected.
|
|
|
|||||||||
|
|
||||||||||||
(c)
|
|
A
brief description of each matter voted on and the approximate number
of
votes cast are as follows (on an actual vote cast, pre-split adjusted
basis, in millions):
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
Number
of Votes
|
|||||||||
|
|
|
|
|
|
|
|
Withheld/
|
|
Broker
|
|||
Description
of Proposals
|
|
For
|
|
Against
|
|
Abstain
|
|
Non-Votes
|
|||||
|
1.
|
Election
of Directors for a term expiring in 2009:
|
|
|
|
|
|
|
|
|
|||
|
|
Patricia
L. Higgins
|
|
289.1
|
|
N/A
|
|
5.3
|
|
N/A
|
|||
|
|
Charles
Coe
|
289.3
|
|
N/A
|
|
5.5
|
|
N/A
|
||||
The following directors, who did not stand for election at the 2006 Annual Meeting, also currently sit on our Board of Directors: James DeBlasio, Frederic Harman and Kevin Ober, whose terms expire in 2007; Eugene Eidenberg,William Harding and Daniel Stanzione, whose terms expire in 2008. | |||||||||||||
|
|
|
|||||||||||
|
2.
|
Approval
of a proposal to grant the board of directors the authority to amend
our
certificate of incorportion to effect a referse stock
split
|
277.8
|
|
16.3
|
0.5
|
N/A
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
3.
|
Approval
of a proposal to grant the board of directors the authority to implement
an option exchange program.
|
|
87 .7
|
|
36.3
|
|
1.5
|
|
N/A
|
|||
|
4.
|
Ratification
of PricewaterhouseCoopers LLP as our independent registered public
accounting firm for the fiscal year ending December 31,
2006
|
|
292.0
|
|
1.3
|
|
1.4
|
|
N/A
|
Exhibit
Number |
|
Description
|
10.1*
|
|
Form
of Stock Grant Certificate under the Amended and Restated Internap
Network Services Corporation 2005 Incentive Stock
Plan.+
|
|
|
|
10.2*
|
Form
of Stock Option Certificate under the Amended and Restated Internap
Network Services Corporation 2005 Incentive Stock
Plan.+
|
|
31.1*
|
|
Certification
of the Chief Executive Officer Pursuant Rules 13a-14 and 15d-14 under
the
Securities Exchange Act of 1934, as Adopted Pursuant to Section 302
of the
Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2*
|
|
Certification
of the Chief Financial Officer Pursuant Rules 13a-14 and 15d-14 under
the Securities Exchange Act of 1934, as Adopted Pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.1*
|
|
Certification
of the Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350,
as
Adopted Pursuant to Section 9-6 of the Sarbanes-Oxley Act of
2002.
|
|
|
|
32.2*
|
|
Certification
of the Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350,
as
Adopted Pursuant to Section 9-6 of the Sarbanes-Oxley Act of
2002.
|
*
|
Documents
filed herewith.
|
+
|
Management
contracts and compensatory plans and arrangements required to be
filed as
exhibits pursuant to Item 6 of this
Report.
|
INTERNAP
NETWORK
SERVICES
CORPORATION
(Registrant)
|
||
|
|
|
By: | /s/ David A. Buckel | |
David A. Buckel Vice
President and Chief Financial Officer
(Principal
Financial and Accounting Officer)
|
||
Date:
August 8, 2006
|