Akamai Reports First Quarter 2011 Financial Results
Wednesday, April 27, 2011 16:01ET
CAMBRIDGE, Mass., April 27, 2011 /PRNewswire/ --
-- First quarter revenue of $276.0 million, up 15 percent year-over-year
-- GAAP net income of $50.6 million, or $0.26 per diluted share, up 24
-- Normalized net income* of $72.2 million, or $0.38 per diluted share, up
9 percent year-over-year
-- Board of Directors authorizes $150 million expansion of share repurchase
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, today reported financial results for the first quarter ended March 31, 2011. Revenue for the first quarter of 2011 was $276.0 million, a 15 percent increase over first quarter 2010 revenue of $240.0 million.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the first quarter of 2011 was $50.6 million, or $0.26 per diluted share, a 24 percent increase from first quarter 2010 GAAP net income of $40.9 million, or $0.22 per diluted share, and a 4 percent decrease from fourth quarter 2010 GAAP net income of $52.5 million, or $0.27 per diluted share.
The Company generated normalized net income* of $72.2 million, or $0.38 per diluted share, in the first quarter of 2011, a 9 percent increase over first quarter 2010 normalized net income of $66.0 million, or $0.35 per diluted share , and a 6 percent decrease from the prior quarter normalized net income of $76.5 million, or $0.40 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
"Continued demand for our value-added solutions, now comprising almost 60 percent of our business, drove our strong results in the first quarter," said Paul Sagan, CEO of Akamai. "We have built a portfolio of cloud computing solutions that leverages our intelligent Internet platform and is designed to address the diverse needs of businesses on the Web."
Adjusted EBITDA* for the first quarter of 2011 was $129.2 million, consistent with the prior quarter, and up from $118.1 million in the first quarter of 2010. Adjusted EBITDA margin for the first quarter was 47 percent, up 2 points from the prior quarter and down 2 points from the same period last year. (*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations was $88.5 million in the first quarter of 2011, or 32 percent of revenue. At the end of the first quarter of 2011, the Company had approximately $1.26 billion in cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 18 percent and 30 percent, respectively, of revenue for the first quarter of 2011.
The Company also announced that its Board of Directors has authorized a second $150 million expansion of its share repurchase program, which is expected to be funded by cash from operations. The Company's goal for this program, which will extend for 12 months beginning in May 2011, is to offset dilution created by its equity compensation programs.
The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. The Company may choose to suspend or discontinue the repurchase program at any time but cannot carry over unused authorization amounts to future periods.
During the first quarter of 2011, the Company repurchased approximately 1 million shares of common stock for an aggregate of $42.8 million at an average price of $41.60 per share. As of March 31, 2011, the Company had repurchased a total of 6.8 million shares for an aggregate of $201.1 million at an average price of $29.53 per share, under the share repurchase program that was initially approved by the Board of Directors in April 2009.
As of March 31, 2011, the Company had approximately 186.9 million shares of common stock outstanding.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-866-730-5767 (or 1-857-350-1591for international calls) and using passcode No. 76371792. 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. 95542558.
Akamai® provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure e-commerce. Combining highly-distributed, energy-efficient computing with intelligent software, Akamai's global platform is transforming the cloud into a more viable place to inform, entertain, advertise, transact and collaborate. To learn how the world's leading enterprises are optimizing their business in the cloud, please visit www.akamai.com and follow @Akamai on Twitter.
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Akamai Technologies, Inc. (AKAM)
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