Akamai Reports Second Quarter 2012 Financial Results
Revenue for the second quarter of 2012 was $331 million
CAMBRIDGE, Mass., July 25, 2012 /PRNewswire/ --
-- Second quarter revenue of $331 million, up 20 percent year-over-year
-- GAAP net income of $44 million, down 8 percent year-over-year; or $0.24
per diluted share, down 4 percent year-over-year
-- Normalized net income* of $78 million, up 18 percent year-over-year; or
$0.43 per diluted share, up 23 percent year-over-year
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading cloud platform for helping
enterprises provide secure, high-performing user experiences on any device,
anywhere, today reported financial results for the second quarter ended June 30,
2012. Revenue for the second quarter of 2012 was $331 million, a 20 percent
increase over second quarter 2011 revenue of $277 million.
(Logo: http://photos.prnewswire.com/prnh/20100225/AKAMAILOGO )
Net income in accordance with United States Generally Accepted Accounting
Principles, or GAAP, for the second quarter of 2012 was $44 million, or $0.24
per diluted share, an 8 percent decrease from second quarter 2011 GAAP net
income of $48 million, or $0.25 per diluted share, and a 2 percent increase from
first quarter 2012 GAAP net income of $43 million, or $0.24 per diluted share.
The Company generated normalized net income* of $78 million, or $0.43 per
diluted share, in the second quarter of 2012, an 18 percent increase over second
quarter 2011 normalized net income of $66 million, or $0.35 per diluted share,
and a 3 percent increase from the prior quarter normalized net income of $75
million, or $0.41 per diluted share. (*See Use of Non-GAAP Financial Measures
below for definitions.)
"Akamai's very strong second quarter results were driven on the top line by
increased adoption of our cloud infrastructure solutions as well as continued
growth of content delivery solutions," said Paul Sagan, President and CEO of
Akamai. "Our bottom line performance was the result of significant benefits we
have begun to realize from improvements we are making to scale our network
operations."
Adjusted EBITDA* for the second quarter of 2012 was $143 million, up 13 percent
from $126 million in the second quarter of 2011, and flat with the prior
quarter. Adjusted EBITDA margin* for the second quarter was 43 percent, down 2
points from the prior quarter and down 3 points from the same period last year.
(*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations was $150 million in the second quarter of 2012, or 45
percent of revenue. At the end of the second quarter of 2012, the Company had
just over $1 billion in cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 21
percent and 27 percent, respectively, of revenue for the second quarter of 2012.
Share Repurchase Program
During the second quarter of 2012, under a share repurchase program that was
approved by the Board of Directors in April 2011 and expanded in May 2012, the
Company repurchased approximately 2 million shares of its common stock for $67
million, at an average price of $30.78 per share. As of June 30, 2012, the
Company had repurchased 20 million shares of its common stock for $558 million,
at an average price of $27.27 per share since April 2009.
The Company had approximately 178 million shares of common stock outstanding as
of June 30, 2012.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed
through 1-800-291-5365 (or 1-617-614-3922 for international calls) and using
passcode No. 94771540. A live Webcast of the call may be accessed at
www.akamai.com in the Investor section. In addition, a replay of the call will
be available for one week following the conference through the Akamai Website or
by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using
passcode No. 25706113.
About Akamai
Akamai® is the leading cloud platform for helping enterprises provide secure,
high-performing user experiences on any device, anywhere. At the core of the
Company's solutions is the Akamai Intelligent Platform(TM) providing extensive
reach, coupled with unmatched reliability, security, visibility and expertise.
Akamai removes the complexities of connecting the increasingly mobile world,
supporting 24/7 consumer demand, and enabling enterprises to securely leverage
the cloud. To learn more about how Akamai is accelerating the pace of innovation
in a hyperconnected world, please visit www.akamai.com or blogs.akamai.com, and
follow @Akamai on Twitter.
More Insights