* Says core business, pricing remain firm
* Says it’s normal to cuts prices to keep customers
Oct 7 (Reuters) - Equinix Inc EQIX.O said Thursday its core business and pricing remain firm despite its lowered revenue outlook, a day after the data center services provider pulled down its peers and the Nasdaq.
The company, which saw $1.5 billion wiped off from its market capitalization Wednesday [ID:nSGE6950JI], reassured investors and said it saw no fundamental change in customer demand.
“We see increasing demand from customers managing high-value applications -- consistent with our strong gross bookings this quarter -- and we expect to be able to maintain our price targets for these deployments,” the company said in a regulatory filing.
The company said it sometimes renegotiated contract conditions with key customers to extend terms or secure incremental business in return for pricing discounts, which reduced its monthly recurring revenue.
Equinix Tuesday warned that its third-quarter sales would be lower than its last forecast as it cuts prices to retain customers. [ID:nSGE6940LF]
Equinix, which bought smaller rival Switch & Data earlier this year, said it was facing temporary softness in booking at the acquired business, but added that it had seen some customer wins in the third quarter.
Shares of the company, which hit a new 52-week low on Wednesday, closed at $70.34 on Nasdaq. (Reporting by Siddharth Cavale in Bangalore; Editing by Don Sebastian)
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