Akamai missed revenue and earnings estimates and lowered forward guidance.
On November 20, 2008 AKAM announced that it will cut 110 jobs (7% of its global employee base) in the fourth quarter to reduce costs.
Akamai profits increased 59% and sales increased 27% to $194M. However, sales were lower than expected and sales dropped 16% after hours.
At the start of the new quarter, a new report indicating strong growth in CDN results in several analysts piling on buy recommendations. The stock bounces back strongly.
A federal jury in Massachusetts today found that Limelight Networks (LLNW) infringed on a content delivery patent held by Akamai, and awarded the company $45.5 million in damages. Limelight plans to appeal the ruling.
Akamai beats Street forecasts of adjusted 37 cents per share, earning 41 cents per share on a pro forma basis.
A Pacific Crest Securities analyst said that Apple's iTunes business is in part serviced by Akamai, boosting the stock.
Akamai Technologies announced its Q3 results, which exceeded expectations. The net income for the quarter was $24.26 million, or 13 cents per share, compared to $14.02 million, or 8 cents per share last year. The revenue was $161.24 million; an increase of 45 percent from $111.49 million last year. Further, the customer base increased 22 percent y-o-y (2,616 customers under long-term services contract).
Increasing capital expenditures and longer term contracts lead to decreasing profit margins. Revenue rose 52% to $152.7 million, exceeding analysts' expectations, according to data from Thomson Financial.