CAMBRIDGE, Mass.—Online content delivery company Akamai Technologies Inc. said Wednesday that its third-quarter net income rose 6 percent as revenue grew on rising demand for streaming to multiple connected devices. The results beat expectations, and the company's shares rose.
Akamai shares jumped $2.24, or 9.4 percent, to $26.50 in after-hours trading Wednesday after closing up 48 cents, or 2.1 percent, at $23.78 in the regular session.
The company also said that David Kenny had resigned as president and director of the company. Kenny joined the company as president in September 2010 after serving on the board for three years.
CEO Paul Sagan was re-appointed as president.
Akamai also it named Kumud Kalia chief information officer, responsible for leading global strategy, development and operations of the applications and infrastructure that supports Akamai's business processes. Kalia will report to Sagan.
Kalia, an engineer, most recently ran the information services organization for Direct Energy, and was previously chief information officer of the business markets group of Qwest Communications International.
Net income in the three months to Sept. 30 grew to $42.3 million, or 23 cents per share, from $39.7 million, or 21 cents per share, a year ago.
Adjusted to exclude stock-based compensation costs and the amortization of intangibles, adjusted earnings came to 34 cents per share, a penny better than expected by analysts polled by FactSet.
Revenue grew 11 percent to $281.9 million from $253.6 million. Analysts were looking for revenue of $279.2 million.