UPDATE 1-Equinix 2nd-qtr profit tops Wall Street; shares rise
* Forecasts Q3 sales above estimates
* Q2 EPS $0.44 beats estimates by 11 cents
* Q2 rev $213.2 mln beats est $208.7 mln
* Shares rise 4 percent
July 22 (Reuters) - Equinix Inc (EQIX.O) reported a second-quarter profit that topped market estimates, driven by a 26 percent rise in recurring revenue, and forecast third-quarter revenue above Wall Street expectations, sending its shares up 4 percent.
The provider of data centers and Internet exchange services also said it will acquire a data center in Frankfurt, Germany.
Second-quarter net income increased to $17.4 million, or 44 cents a share, from $708,000, or 2 cents a share, a year earlier. [ID:nWNAB0333]
Revenue rose 24 percent to $213.2 million. Analysts expected earnings of 33 cents a share, excluding exceptional items, on revenue of $208.7 million, according to Reuters Estimates.
For the third quarter, the company forecast revenue of $221 million to $225 million. Analysts were looking for $220.1 million.
For the year, it expects revenue of $860 million to $875 million. Analysts were expecting $861.1 million.
Equinix projected cash gross margins of 63 percent to 64 percent for the third quarter and the year.
Shares of the company, which competes with Savvis Inc (SVVS.O) and Britain's Telecity Group (TCY.L), were up $2.90 in trading after the bell. They closed at $77.59 Wednesday on Nasdaq. (Reporting by S. John Tilak in Bangalore; Editing by Vinu Pilakkott)
