Akamai Technologies Q3 Profit Rises; EPS, Revenue Top Estimates
10/24/2007 8:50:15 PM Wednesday, Akamai Technologies Inc. (AKAM), a provider of Internet content delivery business, announced third quarter financial results, reporting profits that rose from last year, helped by 45% revenue growth. The company's earnings and revenues, both came in well above analysts' consensus estimates.
On a GAAP basis, the company's net income for the quarter climbed to $24.26 million or $0.13 per share from $14.02 million or $0.08 per share in the year-ago period.
Excluding items, the company's normalized net income for the quarter improved to $62.4 million or $0.34 per normalized share, over $41.8 million or $0.24 per normalized share in the year-ago quarter. The company's earnings topped the $0.33 per share consensus estimate of analysts polled by Thomson FirstCall.
The number of customers under long-term services contracts at the end of the third quarter increased by 61 to a record 2,616, a 22% increase year-over-year.
Akamai Technologies' revenues for the recent third quarter were $161.24 million, compared to $111.49 million in the same period last year. Wall Street analysts had a revenue consensus estimate of $161.08 million.
For the nine months ended September 30, 2007 the company's net income on a GAAP basis, surged to $65.08 million or $0.36 per share from $36.78 million or $0.22 per share in the year-ago period.
On a non-GAAP basis, Akamai Technologies' normalized net income jumped to $168.5 million or $0.91 per share from $106.99 million or $0.61 per share last year.
The company's revenues for the nine-month period rose to $453.2 million from $302.96 million in the year-earlier period.
AKAM closed Wednesday's regular trade down $1.43 or 4.16% at $32.97 on a volume of 15.85 million shares. However, in after-hours the stock gained $0.57 and was at $33.54.