UPDATE 1-Equinix guides outlook above Wall St view; shares rise

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Feb 13 (Reuters) - Equinix Inc (EQIX.O: Quote, Profile, Research), a provider of data centers and Internet exchange services, projected better-than-expected outlook for the first quarter but posted a fourth-quarter loss, hurt by stock-based compensation expenses.

Shares of the company rose 7.8 percent to $78.44 in trading after the bell, after closing at $72.25 on the Nasdaq.

Equinix, which provides services to ISPs such as AT&T, British Telecom and Comcast, forecast first-quarter revenue of $151 million to $152 million, above analysts' expectations of $142.7 million.

The Foster City, California-based company said it expects 2008 revenue between $650 million and $665 million, boosted by its recent acquisition of Netherlands-based Virtu Secure Webservices, a provider of network-neutral data center services. Analysts expect revenue of $632.3 million, according to Reuters Estimates.

The company said it does not see a let up in demand and expects to strengthen its market position in 2008.

For the fourth quarter, it reported a loss of 17 cents a share, compared with a profit of 28 cents in the year-ago quarter. Fourth-quarter loss included stock-based compensation expense of $11.7 million, it said in a statement.

Revenue rose 46 percent to $138.7 million.

Analysts, on average, were expecting the company to post a loss of 7 cents a share, before special items, on revenue of $136.3 million. (Reporting by Shradhha Sharma in Bangalore; Editing by Saumyadeb Chakrabarty)