Akamai Technologies, Inc. (AKAM-NASDAQ) posted non-GAAP EPS of $0.28 on revenues of $139.3 million versus $0.28 EPS and $138.9 million estimates. GAAP net EPS was $0.11; revenues 53 percent year-over-year and 11 percent from the prior quarter. Cash from operations was $56.3 million, or 40 percent of revenue. At the end of the first quarter, the Company had approximately $480 million in cash, cash equivalents and marketable securities. Akamai added 89 net new customers under long-term services contracts during the first quarter of 2007 and Netli contributed an additional 45 net new customers, bringing Akamai’s total quarter-end number of customers under long-term services contracts to 2,481. Sales through resellers and sales outside the United States accounted for 20 percent and 22 percent, respectively, of revenue for the first quarter 2007. Netli contributed approximately $500,000 of revenue during the first quarter of 2007.
Paul Sagan, president and CEO of Akamai: "Demand for our core content delivery and application acceleration services grew in all sectors of our business and helped us to achieve record performance in the first quarter. With our ongoing investment in internal research and development, along with key strategic acquisitions of Nine Systems, Netli, and most recently Red Swoosh, we continue to innovate to meet our customers’ high expectations for quality delivery and enhanced functionality that will help them achieve their online business objectives."
Shares of Akamai had a drop at the end of the day to the tune of 10%, but shares are up 1.5% to $49.68 in after-hours trading. Until guidance is known this one is still basically a pending story.
Jon C. Ogg
April 25, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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