DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2011

DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS

1.           DESCRIPTION OF THE COMPANY AND NATURE OF OPERATIONS

 

Internap Network Services Corporation (“Internap,” “we,” “us” or “our”) provides high-performance information technology (“IT”) infrastructure services that enable our customers to focus on their core business, improve service levels and lower the cost of IT operations. Our colocation, connectivity and managed hosting solutions are differentiated by superior performance, availability and support.

We provide services at 38 data centers across North America, Europe and the Asia-Pacific region and through 77 Internet Protocol (“IP”) service points, which include 18 content delivery network (“CDN”) points of presence (“POPs”) and one additional standalone CDN POP.

The nature of our business subjects us to certain risks and uncertainties frequently encountered by rapidly evolving markets. These risks are described in “Risk Factors” in this Annual Report on Form 10-K.

We have a history of quarterly and annual period net losses, including for each of the three years in the period ended December 31, 2011.  At December 31, 2011, our accumulated deficit was $1.0 billion. However, during the years ended December 31, 2011, 2010 and 2009, we generated net cash flows from operating activities of $28.6 million, $39.6 million and $37.5 million, respectively.