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OPERATING SEGMENTS
9 Months Ended
Sep. 30, 2011
OPERATING SEGMENTS
3.           OPERATING SEGMENTS
 
We operate in two business segments: data center services and IP services. The data center services segment includes colocation services, which involves providing physical space within our data centers, as well as associated services such as redundant power, interconnection, environmental controls and security. The segment also includes hosting services in which customers own and manage their software applications and content, while we provide and maintain the hardware, operating system, data center infrastructure and interconnection.  The IP services segment includes our patented Performance IP™ service, XIP™ Acceleration-as-a-Service solution, CDN services and flow control platform (“FCP”) products.

The following table shows operating results for our business segments, along with reconciliations from segment profit to loss before income taxes and equity in (earnings) of equity-method investment:
                         
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
Revenues:
                        
Data center services
   $ 34,114     $ 31,550     $ 98,137     $ 96,468  
IP services
     27,900       28,765       83,691       87,736  
Total revenues
     62,014       60,315       181,828       184,204  
                                 
Operating costs and expenses:
                                
Direct costs of network, sales and services, exclusive of depreciation and amortization:
                                
Data center services
     20,480       20,405       58,743       63,232  
IP services
     10,307       11,162       31,643       33,683  
Total direct costs of network, sales and services, exclusive of depreciation and amortization
     30,787       31,567       90,386       96,915  
                                 
Segment profit:
                                
Data center services
     13,634       11,145       39,394       33,236  
IP services
     17,593       17,603       52,048       54,053  
Total segment profit
     31,227       28,748       91,442       87,289  
                                 
Restructuring
     123       —       1,615       1,201  
Other operating expenses, including direct costs of customer support, depreciation and amortization
     31,529       29,284       92,811       87,223  
Loss from operations
     (425 )     (536 )     (2,984 )     (1,135 )
Non-operating expense
     1,186       620       2,795       1,415  
Loss before income taxes and equity in (earnings) of equity-method investment
   $ (1,611 )   $ (1,156 )   $ (5,779 )   $ (2,550 )