AKAM » Topics » Overview

These excerpts taken from the AKAM 10-K filed Mar 1, 2010.

Overview

Akamai provides services for accelerating and improving the delivery of content and applications over the Internet; ranging from live and on-demand streaming video capabilities to conventional content on websites, to tools that help people transact business and reach out to new and existing customers. Thousands of customers worldwide use our services to help sell, inform, entertain, market, advertise, deliver software and conduct their business online.

Our solutions are designed to help companies, government agencies and other enterprises improve communications with people they are trying to reach, enhance their revenue streams and reduce costs by maximizing the performance of their online businesses. We believe that our solutions offer the superior reliability, sophistication and insight that businesses with an Internet presence demand. At the same time, by relying on our infrastructure, customers can reduce expenses associated with internal infrastructure build-outs. In short, we strive to help our customers efficiently offer better websites that improve visitor experiences and increase the effectiveness of their Internet-focused operations.

We were incorporated in Delaware in 1998 and have our corporate headquarters at 8 Cambridge Center, Cambridge, Massachusetts. We have been offering content delivery services and streaming media services since 1999. In subsequent years, we introduced private content delivery networks; Internet-based delivery of applications such as store/dealer locators and user registration; large-scale software distribution capabilities; intelligent real-time ad targeting solutions; content targeting technology and enhanced security features.

In 2009, we launched the Akamai HD Network, a new high definition, or HD, streaming delivery platform that is designed to enable our customers to offer live and on-demand HD video online to viewers in one format regardless of whether site visitors are using Adobe Flash technology, Microsoft Silverlight or an iPhone. The Akamai HD Network offers adaptive bitrate streaming capabilities across different playback formats and leverages our entire HTTP footprint, which includes tens of thousands of servers deployed around the world.

Our Internet website address is www.akamai.com. We make available, free of charge, on or through our Internet website our annual reports on Form 10-K, quarterly reports on Form 10-Q, periodic reports on Form 8-K and amendments thereto that we have filed with the Securities and Exchange Commission, or the Commission, as soon as reasonably practicable after we electronically file them with the Commission. We are not, however, including the information contained on our website, or information that may be accessed through links on our website, as part of, or incorporating it by reference into, this annual report on Form 10-K.

 

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Overview

Our MD&A is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. These principles require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, cash flow and related disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable and related reserves, valuation and impairment of investments and marketable securities, capitalized internal-use software costs, goodwill and other intangible assets, tax reserves, impairment and useful lives of long-lived assets, loss contingencies and stock-based compensation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time such estimates are made. Actual results may differ from these estimates. For a complete description of our significant accounting policies, see Note 2 to our consolidated financial statements included elsewhere in this annual report on Form 10-K.

 

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This excerpt taken from the AKAM DEF 14A filed Apr 10, 2009.

Overview

In the opinion of Akamai’s Board of Directors, the future success of Akamai depends, in large part, on its ability to maintain a competitive position in attracting, retaining and motivating key employees with experience and ability. On March 16, 2009, Akamai’s Board of Directors adopted, subject to stockholder approval, the Akamai Technologies, Inc. 2009 Stock Incentive Plan, which we refer to as the 2009 Stock Incentive Plan.

The 2009 Stock Incentive Plan is intended to replace our 2006 Stock Incentive Plan and 2001 Stock Incentive Plan. If the 2009 Stock Incentive Plan is approved by stockholders, no further stock options or other equity awards will be made under the 2001 Stock Incentive Plan or the 2006 Stock Incentive Plan; however, shares subject to awards currently outstanding under those plans and the 1998 Stock Incentive Plan that are terminated, cancelled, surrendered or forfeited may be re-issued under the 2009 Stock Incentive Plan. The 1998 Stock Incentive Plan no longer allows for the issuance of awards thereunder.

The 2009 Stock Incentive Plan would allow for the issuance of (i) up to 8,500,000 shares of our common stock and (ii) any shares of common stock subject to awards that are currently outstanding under the 2001 Stock Incentive Plan, the 1998 Stock Incentive Plan or the 2006 Stock Incentive Plan, which we refer to as the Existing Plans, that are terminated, cancelled, surrendered or forfeited, to our employees, officers, directors, consultants and advisors in the form of options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units and other stock-based awards as described below, which we refer to, collectively, as Awards.

 

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The Board of Directors believes that approving 8,500,000 shares for issuance under the 2009 Stock Incentive Plan is appropriate and in the best interests of stockholders given Akamai’s current expectations on hiring, the highly competitive environment in which we recruit and retain employees, the dilution rate of Akamai’s peers and Akamai’s historical rate of issuing equity awards. Our management will carefully consider all proposed grants under the 2009 Stock Incentive Plan.

These excerpts taken from the AKAM 10-K filed Mar 2, 2009.

Overview

Akamai provides services for accelerating and improving the delivery of content and applications over the Internet ranging from live and on-demand streaming video capabilities to conventional content on websites, to tools that help people transact business and reach out to new and existing customers. Hundreds of customers worldwide use our services to help sell, inform, entertain, market, advertise, deliver software, and conduct their business online.

Our solutions are designed to help companies, government agencies and other enterprises improve communications with people they are trying to reach, enhance their revenue streams and reduce costs by maximizing the performance of their online businesses. We believe that our solutions offer the superior reliability, sophistication and insight that businesses with an Internet presence demand. At the same time, by relying on our infrastructure, customers can reduce expenses associated with internal infrastructure build-outs. In short, we strive to help our customers efficiently offer better websites that improve visitor experiences and increase the effectiveness of their Internet-focused operations.

We were incorporated in Delaware in 1998 and have our corporate headquarters at 8 Cambridge Center, Cambridge, Massachusetts. We have been offering content delivery services and streaming media services since 1999. In subsequent years, we introduced private content delivery networks; Internet-based delivery of applications such as store/dealer locators and user registration; large-scale software distribution capabilities; content targeting technology and enhanced security features.

In 2008, we launched our Advertising Decision Solutions, or ADS, which provides information that is intended to help online advertisers better target potential customers. Our first service — Insight for Publishers — provides cross-site audience intelligence, enabling real-time ad targeting across different websites. The introduction of ADS was complemented by our acquisition of aCerno, Inc., which we call acerno, in November 2008. We view this acquisition as giving us the capacity to offer a unique online co-operative of shopping and purchase data that is structured to enable more targeted online advertising.

Our Internet website address is www.akamai.com. We make available, free of charge, on or through our Internet website our annual reports on Form 10-K, quarterly reports on Form 10-Q, periodic reports on Form 8-K and amendments thereto that we have filed with the Securities and Exchange Commission, or the Commission, as soon as reasonably practicable after we electronically file them with the Commission. We are not, however, including the information contained on our website, or information that may be accessed through links on our website, as part of, or incorporating it by reference into, this annual report on Form 10-K.

 

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Overview

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Akamai provides services for accelerating and improving the delivery of content and applications over the Internet ranging from live and on-demand
streaming video capabilities to conventional content on websites, to tools that help people transact business and reach out to new and existing customers. Hundreds of customers worldwide use our services to help sell, inform, entertain, market,
advertise, deliver software, and conduct their business online.

Our solutions are designed to help companies, government agencies and
other enterprises improve communications with people they are trying to reach, enhance their revenue streams and reduce costs by maximizing the performance of their online businesses. We believe that our solutions offer the superior reliability,
sophistication and insight that businesses with an Internet presence demand. At the same time, by relying on our infrastructure, customers can reduce expenses associated with internal infrastructure build-outs. In short, we strive to help our
customers efficiently offer better websites that improve visitor experiences and increase the effectiveness of their Internet-focused operations.

SIZE="2">We were incorporated in Delaware in 1998 and have our corporate headquarters at 8 Cambridge Center, Cambridge, Massachusetts. We have been offering content delivery services and streaming media services since 1999. In subsequent years, we
introduced private content delivery networks; Internet-based delivery of applications such as store/dealer locators and user registration; large-scale software distribution capabilities; content targeting technology and enhanced security features.

In 2008, we launched our Advertising Decision Solutions, or ADS, which provides information that is intended to help online advertisers
better target potential customers. Our first service — Insight for Publishers — provides cross-site audience intelligence, enabling real-time ad targeting across different websites. The introduction of ADS was complemented by our
acquisition of aCerno, Inc., which we call acerno, in November 2008. We view this acquisition as giving us the capacity to offer a unique online co-operative of shopping and purchase data that is structured to enable more targeted online
advertising.

Our Internet website address is www.akamai.com. We make available, free of charge, on or through our Internet website our
annual reports on Form 10-K, quarterly reports on Form 10-Q, periodic reports on Form 8-K and amendments thereto that we have filed with the Securities and Exchange Commission, or the Commission, as soon as reasonably practicable after we
electronically file them with the Commission. We are not, however, including the information contained on our website, or information that may be accessed through links on our website, as part of, or incorporating it by reference into, this annual
report on Form 10-K.

 


2







Table of Contents


Overview

Our MD&A is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, cash flow and related disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable and related reserves, valuation and impairment of investments and marketable securities, capitalized internal-use software costs, goodwill and other intangible assets, tax reserves, impairment

 

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and useful lives of long-lived assets, loss contingencies and stock-based compensation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time such estimates are made. Actual results may differ from these estimates. For a complete description of our significant accounting policies, see Note 2 to our consolidated financial statements included elsewhere in this annual report on Form 10-K.

This excerpt taken from the AKAM 10-Q filed May 12, 2008.

Overview

Our management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statements included elsewhere in this quarterly report on Form 10-Q, which have been prepared by us in accordance with accounting principles generally accepted in the United States of America for interim periods and Regulation S-X promulgated under the Exchange Act. The preparation of these unaudited consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related items, including, but not limited to, revenue recognition, accounts receivable and related reserves, investments, goodwill and other intangible assets, capitalized internal-use software costs, tax reserves, loss contingencies and stock-based compensation costs. We base our estimates and judgments on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time they were made. Actual results may differ from our estimates. See the section entitled “Application of Critical Accounting Policies and Estimates” in our annual report on Form 10-K for the year ended December 31, 2007 for further discussion of our critical accounting policies and estimates.

These excerpts taken from the AKAM 10-K filed Feb 29, 2008.

Overview

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Akamai provides services for accelerating and improving the delivery of content and applications over the Internet — from live and on-demand
streaming videos to conventional content on websites, to tools that help people transact business. Our solutions are designed to help businesses, government agencies and other enterprises enhance their revenue streams and reduce costs by maximizing
the performance of their online businesses. By relying on our infrastructure, customers can reduce expenses associated with internal infrastructure build-ups while also gaining access to unique technology offerings and information. In short, we
strive to help our customers efficiently offer better websites that improve visitor experiences and increase the effectiveness of their Internet-focused operations.

FACE="Times New Roman" SIZE="2">We were incorporated in Delaware in 1998 and have our corporate headquarters at 8 Cambridge Center, Cambridge, Massachusetts. We have been offering content delivery services and streaming media services since 1999. In
subsequent years, we introduced private content delivery networks; Web-based delivery of applications such as store/dealer locators and user registration; large-scale software distribution capabilities; content targeting technology and enhanced
security features.

We completed two significant strategic transactions in 2007. In March, we acquired Netli, Inc., or Netli, in an effort
to enhance our application acceleration solutions, which are designed to improve the performance of Web- and other Internet-based applications. In April, we acquired Red Swoosh, Inc., or Red Swoosh, which had developed innovative client-side
technology for supporting the management and distribution of media files while respecting publishers’ rights restrictions and copyrights. We also introduced a number of service innovations during 2007, including:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

StreamOS technology — a rich media-management solution designed to help content owners distribute their content on the Internet


 







 

 

Live streaming for use with Adobe’s Flash® FLV format

 







  

Delivery of High Definition, or HD, Internet video

 







  

IP Application Accelerator service — a managed service solution designed to improve the delivery of any enterprise IP-based application delivered over the
Internet

Our Internet website address is www.akamai.com. We make available, free of charge, on or through our Internet
website our Periodic Reports and amendments to those Periodic Reports as soon as reasonably practicable after we electronically file them with the Securities and Exchange Commission, or the Commission. We are not, however, including the information
contained on our website, or information that may be accessed through links on our website, as part of, or incorporating it by reference into, this annual report on Form 10-K.

SIZE="1"> 


3







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Overview

Our MD&A is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, cash flow and related disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable and related reserves, capitalized internal-use software costs, intangible assets and goodwill, income and other taxes, impairment and useful lives of long-lived assets, loss contingencies and stock-based compensation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time such estimates are made. Actual results may differ from these estimates. For a complete description of our significant accounting policies, see Note 2 to our consolidated financial statements included in this annual report on Form 10-K.

This excerpt taken from the AKAM 10-Q filed Nov 9, 2007.

Overview

Our management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statements included elsewhere in this quarterly report on Form 10-Q,

 

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which have been prepared by us in accordance with accounting principles generally accepted in the United States of America for interim periods and Regulation S-X of the Securities Act of 1934, as amended. The preparation of these unaudited consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related items, including, but not limited to, revenue recognition, accounts receivable reserves, investments, intangible assets, capitalized internal-use software costs, income and other taxes, depreciable lives of property and equipment, stock-based compensation costs, restructuring accruals and contingent obligations. We base our estimates and judgments on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time they were made. Actual results may differ from our estimates. See the section entitled “Application of Critical Accounting Policies and Estimates” in our annual report on Form 10-K for the year ended December 31, 2006 for further discussion of our critical accounting policies and estimates.

This excerpt taken from the AKAM 10-Q filed Aug 9, 2007.

Overview

Our management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements included elsewhere in this quarterly report on Form 10-Q, which have been prepared by us in accordance with accounting principles generally accepted in the United States of America for interim periods and Regulation S-X of the Securities Act of 1934, as amended. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related items, including, but not limited to, revenue recognition, accounts receivable reserves, investments, intangible assets, capitalized internal-use software costs, income and other taxes, depreciable lives of property and equipment,

 

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stock-based compensation costs, restructuring accruals and contingent obligations. We base our estimates and judgments on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time they were made. Actual results may differ from our estimates. See the section entitled “Application of Critical Accounting Policies and Estimates” in our annual report on Form 10-K for the year ended December 31, 2006 for further discussion of our critical accounting policies and estimates.

This excerpt taken from the AKAM 10-Q filed May 10, 2007.
Overview
 
Our management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements included elsewhere in this quarterly report on Form 10-Q, which have been prepared by us in accordance with accounting principles generally accepted in the United States of America for interim periods. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related items, including, but not limited to, revenue recognition, accounts receivable reserves, investments, intangible assets, capitalized internal-use software costs, income and other taxes, depreciable lives of property and equipment, stock-based compensation costs, restructuring accruals and contingent obligations. We base our estimates and judgments on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates. See the section entitled “Application of Critical Accounting Policies and Estimates” in our annual report on Form 10-K for the year ended December 31, 2006 for further discussion of our critical accounting policies and estimates.
 
This excerpt taken from the AKAM 10-K filed Mar 1, 2007.
Overview
 
Our management’s discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, cash flow and related disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable and related reserves, capitalized internal-use software costs, intangible assets and goodwill, income and other taxes, impairment and useful lives of long-lived assets, restructuring liabilities, loss contingencies and stock-based compensation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances at the time such estimates are made. Actual results may differ from these estimates. For a complete description of our significant accounting policies, see Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K.
 
This excerpt taken from the AKAM 10-Q filed Nov 9, 2006.
Overview
 
Our management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements included elsewhere in this quarterly report on Form 10-Q, which have been prepared by us in accordance with accounting principles generally accepted in the United States of America for interim periods. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related items, including, but not limited to, accounts receivable reserves, investments, intangible assets, capitalized internal-use software costs, income and other taxes, depreciable lives of property and equipment, stock-based compensation costs, restructuring accruals and contingent obligations. We base our estimates and judgments on historical experience and on various other assumptions that we believe to be reasonable at the time made and under the circumstances. Actual results may differ from our estimates. See the section entitled “Application of Critical Accounting Policies and Estimates” in our annual report on Form 10-K for the year ended December 31, 2005 for further discussion of these critical accounting policies and estimates.
 
This excerpt taken from the AKAM DEF 14A filed Apr 10, 2006.
Overview
 
In the opinion of Akamai’s Board of Directors, the future success of Akamai depends, in large part, on its ability to maintain a competitive position in attracting, retaining and motivating key employees with experience and ability. Upon the recommendation of the Compensation Committee of the Board of Directors, our Board of Directors has approved the adoption of the Akamai Technologies, Inc. 2006 Stock Incentive Plan, subject to stockholder approval. The 2006 Stock Incentive Plan will ultimately replace our Second Amended and Restated 1998 Stock Incentive Plan, which we refer to as the 1998 Stock Incentive Plan, which terminates in early 2008. The 2006 Stock Incentive Plan would allow for the issuance of up to 7,500,000 shares of our common stock to our employees, officers, directors, consultants and advisors in the form of options, stock appreciation rights, restricted stock, restricted stock units and other stock unit awards.
 
The Board of Directors monitors the potential stockholder dilution and “overhang” represented by outstanding employee equity awards and shares available for future grant. As of March 15, 2006, we had:
 
  •  154,026,371 shares of our common stock outstanding;
 
  •  18,996,076 options, restricted stock units and other equity-related awards outstanding under existing equity incentive plans;
 
  •  1,706,215 shares available for issuance under existing equity incentive plans, excluding shares issuable under our 1999 Employee Stock Purchase Plan; and
 
  •  12,944,984 shares issuable upon conversion of our outstanding 1% senior convertible notes.
 
In addition to reviewing the dilutive impact of shares available for issuance under our equity incentive plans, the Board of Directors also considers our “burn rate.” Our burn rate is calculated as the number of shares underlying stock options and other equity-based awards granted during a year under the 1998 Stock Incentive Plan, divided by the number of shares outstanding at the end of the year. The average of the burn rates in the years 2003, 2004 and 2005 was approximately 3.0%.


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In January 2006, the Compensation Committee approved a restricted stock unit, or RSU, program for Akamai employees under the 1998 Stock Incentive Plan. Each RSU represents the right to receive one share of Akamai common stock upon vesting. Participants in the program received two types of RSUs: time-based RSUs, which vest in 33% installments on the first business day of each of 2007, 2008 and 2009, and performance-based RSUs, which only vest in 2009 and only to the extent that Akamai exceeds specified cumulative revenue and earnings per share targets over the period of 2006 through 2008. The number of performance-based RSUs that may vest is between 100% and 300% of the number of time-based RSUs granted on the same date depending on our actual performance; however, no performance-based RSUs will vest if we fail to exceed the minimum applicable targets. An aggregate of 803,206 time-based RSUs were issued in January and February 2006. The number of outstanding options, RSUs and other equity-related awards set forth above reflects 400% of such number, or 3,212,824 shares, representing the maximum number of shares issuable upon complete vesting in 2009 of all time-based RSUs and all performance-based RSUs. Shares that would have been issuable in respect of performance-based RSUs that do not vest will be available for issuance under the 2006 Stock Incentive Plan.
 
The Board of Directors believes that authorizing 7,500,000 shares for issuance under the 2006 Stock Incentive Plan is appropriate and in the best interests of stockholders given Akamai’s current expectations on hiring, the highly competitive environment in which we recruit and strive to retain employees, the dilution rate of Akamai’s peers and Akamai’s historical burn rate.
 
Our management will carefully consider all proposed grants under the 2006 Stock Incentive Plan. We anticipate that the number of shares issuable under the proposed 2006 Stock Incentive Plan, together with those remaining available for issuance under the 1998 Stock Incentive Plan, will be sufficient to meet our needs until the 2008 annual meeting of our stockholders.
 
This excerpt taken from the AKAM 10-K filed Mar 16, 2006.
Overview
 
Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally


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accepted in the United States of America. These principles require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, cash flow and related disclosure of contingent assets and liabilities. Our estimates include those related to revenue recognition, accounts receivable reserves, capitalized internal-use software costs, intangible assets and goodwill, income and other taxes, useful lives of property and equipment, restructuring accruals and contingent obligations. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. For a complete description of our significant accounting policies, see Note 2 to our consolidated financial statements included in this annual report on Form 10-K.
 
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