1、Connectivity ColocationManaged HostingCloudIQITIntelligent IT Infrastructure solutions that take your business to a higher level.0377cvr_r1.indd 14/19/11 9:09 AMTo Our Stockholders,Since I arrived a little more than two years ago,weve undertaken a range of initiatives to position the company for sus
2、tained,long-term profitable growth.In 2009,we developed the strategy for the business and began executing to plan by streamlining back-office functions,strengthening the executive management team and reconstructing the sales and engineering organizations.We saw the initial financial benefits of thes
3、e actions early on.In third quarter of 2009,we reported the first sequential quarterly increase in segment margin in over two years and by the fourth quarter of 2009,we had generated three consecutive quarters of EBITDA(adj)growth.We continued the implementation of the strategic plan throughout 2010
4、 with positive results across the business.First,we successfully completed a program to proactively churn revenue and reduce costs in select third-party partner data centers.As part of this initiative,we eliminated$5 million in low-margin quarterly run-rate partner revenue,reduced 31,000 square feet
5、 of partner data center space,and removed 12 under-performing partner facilities from our data center portfolio.Second,we deployed more core Internap-operated capacity and services in 2010.We added approximately 30,000 net sellable square feet of premium,company-controlled data center space,increasi
6、ng our company-controlled selling capacity by 26%over 2009.We also began to see early results from our product develop-ment efforts with enhancements to our Managed Host-ing services and the launch of our XIPTM web accelera-tion service.Third,through renewed focus and increased investment,we deliver