Akamai 2Q profit down 8 percent but beats Street

AP News
Posted: Jul 25, 2012 4:54 PM

CAMBRIDGE, Mass. (AP) — Online content delivery company Akamai Technologies Inc. said Wednesday that its second-quarter net income fell 8 percent in its second quarter, as costs rose faster than revenue.

But excluding one-time items, profit topped analyst estimates, as did revenue growth, and shares climbed $5.24, or 19 percent, to $33.49 in after-hours trading.

Net income came to $44.2 million, or 24 cents per share, in the April-June period, from $47.9 million, or 25 cents per share, a year ago.

Excluding the costs of paying executives with stock and other items, adjusted earnings were 43 cents per share, topping the 37 cents expected by analysts polled by FactSet.

Revenue grew 20 percent to $331 million from $277 million, which also beat the $326 million expected by analysts. Akamai helps websites deliver video and other content to viewers, and the increasing popularity of Internet video has helped it expand. CEO Paul Sagan said the content delivery business kept growing during the quarter, while more customers used the company's cloud infrastructure products.

Still, the company's costs and operating expenses climbed faster, rising 30 percent to $264.3 million.

Shares of the Cambridge, Mass., company had closed the regular session down 14 cents at $28.25.