Akamai profit sinks 17 percent
Akamai Technologies Inc., whose services are used to stream video and multimedia content over the Internet, said its fourth-quarter profit sank 17 percent, weighed down by stock options expenses and heavy charges.
Quarterly earnings fell to $20.6 million, or 12 cents per share, from $25.8 million, or 16 cents per share, during the same period last year. Excluding $40 million in depreciation and amortization charges, $49.6 million in stock options expenses, and other special items, profit totaled 27 cents per share in the latest period.
Revenue jumped 52 percent to $125.7 million from $82.7 million in the year-ago quarter, the Cambridge company said.
The results topped analysts' estimates for adjusted profit of 26 cents per share on sales of $121.5 million.
"Akamai's strong growth in the fourth quarter was fueled by increased demand for our services across our customer base, especially in the digital media and online commerce markets," said Paul Sagan, chief executive.
For the full fiscal year, Akamai's profit plunged 83 percent to $57.4 million, or 34 cents per share, from $328 million, or $2.11 per share, in 2005, which included a tax gain of $258 million.
Excluding special items, 2006 profit totaled 88 cents per share, just above Wall Street's estimated 87 cents per share.
Revenue climbed 51 percent to $428.7 million from $283.1 million in 2005. Analysts expected sales to total $424.5 million in 2006.
Akamai shares closed up $1.80, or 3.3 percent, to $56.95 on the Nasdaq.
(AP)
