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Akamai Reports Second Quarter 2011 Financial Results
Wednesday, July 27, 2011 16:01ET
CAMBRIDGE, Mass., July 27, 2011 /PRNewswire/ --
-- Revenue of $277.0 million, up 13 percent year-over-year
-- GAAP net income of $47.9 million, or $0.25 per diluted share, up 26
percent year-over-year
-- Normalized net income* of $65.8 million, or $0.35 per diluted share, up
1 percent year-over-year
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, today reported financial results for the second quarter ended June 30, 2011. Revenue for second quarter 2011 was $277.0 million, a 13 percent increase over second quarter 2010 revenue of $245.3 million, and slightly above first quarter 2011 revenue of $276.0 million.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the second quarter of 2011 was $47.9 million, or $0.25 per diluted share, a 26 percent increase from second quarter 2010 GAAP net income of $38.1 million, or $0.20 per diluted share, and a 5 percent decrease from first quarter 2011 GAAP net income of $50.6 million, or $0.26 per diluted share.
The Company generated normalized net income* of $65.8 million, or $0.35 per diluted share, in the second quarter of 2011, a 1 percent improvement over second quarter 2010 normalized net income of $65.0 million, or $0.34 per diluted share, and down 9 percent from first quarter 2011 normalized net income of $72.2 million, or $0.38 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
Included in these results for the second quarter of 2011 is a tax charge of $28.3 million, based on a full-year GAAP tax rate of 35 percent. This tax rate is higher than the previous forecast of 32 to 33 percent, due to increased costs attributable to investment in the Company's network outside of North America. The impact of the higher tax rate on net income in the second quarter of 2011 was approximately $5.0 million, or $0.03 per diluted share.
"Trends in cloud computing, Internet security, mobile connectivity, and the proliferation of online video have continued to drive our customers' online initiatives and our business success," said Paul Sagan, CEO of Akamai. "With the scale, data and software underlying the Akamai intelligent platform, combined with our deep industry expertise, we believe Akamai is uniquely capable of enabling our customers' online businesses to grow revenues and reduce costs. We continue to position Akamai to lead the next evolution of cloud computing by investing in the business to build new and innovative solutions that leverage the Company's core competencies."
Adjusted EBITDA* for the second quarter of 2011 was $126.2 million, up 13 percent from $112.1 million in the second quarter of 2010 and down about 2 percent from $129.2 million in the prior quarter. Adjusted EBITDA margin* for the second quarter of 2011 was 46 percent, consistent with the same period last year. (*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations was $111.8 million in the second quarter of 2011 or 40 percent of revenue. At the end of the second quarter of 2011, the Company had approximately $1.3 billion in cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 19 percent and 30 percent, respectively, of revenue for the second quarter 2011.
During the second quarter of 2011, under a share repurchase program that was approved by the Board of Directors in April 2009 and extended in April 2011, the Company repurchased approximately 1.5 million shares of common stock for $50.5 million at an average price of $32.90 per share. As of June 30, 2011, the Company had repurchased 8.3 million shares of common stock for $251.5 million at an average price of $30.15 per share.
As of June 30, 2011, the Company had approximately 186.0 million shares of common stock outstanding.
Continued at :
http://www.knobias.com/story.htm?eid=3.1.d475e82558c5e8f28e6aa3d47ca1a4fe981e80b1373a019ddcef4897aedf6071
AKAM: Q2 Adj EPS 35c vs 34c Misses 36c Est
Wednesday, July 27, 2011 16:38ET
QUARTER RESULTS
Akamai Technologies Incorporated (AKAM) reported Q2 results ended June 2011. Q2 Revenues were $277.00M; +12.91% vs yr-ago; MISSING revenue consensus by -0.30%. Q2 EPS was 25c. Adjusted Q2 EPS was 35c; +2.94% vs yr-ago; MISSING earnings consensus by -2.78%.
Q2 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $277.00M $245.32M +12.91% $277.83M -0.30%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 25c N/A N/A N/A N/A
Adj EPS: 35c 34c +2.94% 36c -2.78%
---------- ------------ ------------ ---------- ------------ ----------
SPY arrest of employee!
http://xfinity.comcast.net/articles/news-technology/20110722/US.Akamai.Spy.Arrest/
I think this quarter will beat our estimates. The shorties will be in the urgent need to cover.
AKAM: 2Q earnings 7-27-11 AMC
Akamai To Hold Second Quarter Investor Conference Call on Wednesday, July 27th at 4:30 PM ET
Wednesday, June 29, 2011 06:30ET
CAMBRIDGE, Mass., June 29, 2011 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, announced today that the company will hold a conference call for investors on Wednesday, July 27, 2011 at 4:30 p.m. ET. The call will include the company's second quarter 2011 financial results and may include forward-looking financial guidance from management. The call will also be broadcast live via the Internet at www.akamai.com.
The live dial-in information for the conference call is:
U.S. only: (866) 800-8652
International: (617) 614-2705
Passcode: 92064685
In addition, a replay of the call will be available for one week following the conference by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using passcode No. 65335286. The archived webcast of this event may be accessed through the Akamai Website.
About Akamai
Akamai® provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure 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.
This stock has been hitting a new low almost weekly.
Wow akami hit a 52 week low this week.
Akamai chief scientist buys $1.6M in stock
The chief scientist at Akamai Technologies Inc. (Nasdaq: AKAM) recently bought $1.6 million worth of the Cambridge, Mass.-based company’s stock, which has taken a beating this year.
Chief Scientist Thomson Leighton bought 50,000 shares at $32.66 apiece, according to a filing with the Securities and Exchange Commission. The stock is owned indirectly by the Thomson Leighton and Bonnie Leighton Revocable Trust, according to the SEC filing.
Since Jan. 3, Akamai shares have dropped 31 percent while the Nasdaq has climbed 6 percent. Investors recently were disappointed by Akamai’s forecast, even though the company beat analysts’ estimates in the first quarter.
http://www.bizjournals.com/boston/news/2011/05/20/akamai-chief-scientist-buys-16m-in.html?ana=yfcpc
You know I'm not good with change, right? ;)
I miss MKA! :(
I'm really starting to like those quicker indicators. Kudos!
StockTA initiated a Support this morning @ 35.16.
http://www.stockta.com/cgi-bin/analysis.pl?symb=AKAM&num1=3&cobrand=&mode=stockSupport/Resistance
Type Value Conf.
resist. 54.28 2
resist. 52.24 2
resist. 50.13 3
resist. 49.07 2
resist. 47.78 3
resist. 47.00 3
resist. 42.20 2
resist. 41.12 7
resist. 40.08 2
resist. 38.54 5
resist. 36.58 4
supp 35.16 4
RE: I am personally interested in seeing what will happen….IF…. the PPS drops below $34
Me too. I'm still not in. Losing interest right now as it's May. Y
(Thanks for doing all you do J, all the boards and info you keep alive)
You are welcome! And Thank you! :)
Barchart.com comes up with $33.73 as support today?
What’s up with that.…should AKAM break it’s 52-week low of $33.95 the next support level is 22¢ lower? http://www.barchart.com/opinions/stocks/AKAM
In any event, outside of any "news" I’m thinking short-term is on your side when it comes to triggering a buy? Not thinking an upward explosion is pending “any day now”… :o)
I am personally interested in seeing what will happen….IF…. the PPS drops below $34
(Thanks for doing all you do J, all the boards and info you keep alive)
Does a 52-week ($33.95) serve as much “support”?
Or is the next level of support down there around $30 as Finviz’s line currently suggesting?
StockTA is not currently showing any support levels?
http://www.stockta.com/cgi-bin/analysis.pl?symb=AKAM&num1=3&cobrand=&mode=stock
shorted a bit much
Harsh treatment for such narrow miss
EDIT: really beat estimate on sales
what is the 'adjustment" ? SHARE COUNT??
AKAM Down from $40s to 30s with shortfalls in revenues and profit.
INAP up. Strange! SHORTIES KNEW ABOUT $34 LEVEL A MONTH AGO!
I was thinking of buying it back on that. Seems a good drop is always followed with a fair trade opportunity?
Still debating.
The 34.46 low was off by .46 from where I was sitting early this morning.
Now I'm just hanging out waiting and watching. Knowing me - I'll be late to the game, should I choose to play.
Best wishes, True!
J
Interesting reaction to call. It wasn't nearly as bad as today's reaction so I'm waiving the "first loss best loss" rule lol. They basically softly reinforced the 15% C11 growth objective (as opposed to guidance). The guidance for Q2 seemed to be consistent with their earlier statements while below street. Biggest issue was the compression of margins due to pricing to me. Not a good sign for a higher growth tech company and suggests the analysts 5 yr secular growth rate of around 17% is too high. Fwd PE seems reasonable around $38-40 so I'm looking for a bounce to that level after the sell off is over.
Hey, Eastunder, thanks for the thoughts.
The fall appears to be exaggerated in light of the very slight reduction in forecast revenues but Wall Street has done what it will do - whack you as a fix for a small cough.
I'm gonna watch, having sold my shares some time ago.
Good luck with your trading.
Trueheart
Lots of action today from analyst community:
Akamai downgraded to Equal Weight from Overweight at Morgan Stanley
Morgan Stanley downgraded Akamai citing the slowdown in Media and Entertainment revenue growth. :theflyonthewall.com
08:19 EDT AKAM theflyonthewall.com: Akamai has next major support at $34.60, the March pivot low
Subscribe for More Information :theflyonthewall.com
08:10 EDT AKAM theflyonthewall.com: Akamai weakness overdone, says DA Davidson
Subscribe for More Information :theflyonthewall.com
08:02 EDT AKAM theflyonthewall.com: Akamai sell-off a buying opportunity, says Wedbush
Subscribe for More Information :theflyonthewall.com
06:56 EDT AKAM theflyonthewall.com: Akamai target range lowered to $40-$44 from $44-$48 at Merriman
Subscribe for More Information :theflyonthewall.com
J.P. Morgan slashed its price target for Akamai Technologies (NASDAQ: AKAM) to $40.00 in a report published today, from the previous level of $49.
Akamai managed to beat analysts' Q1 earnings per share estimates by $0.02. In the report, however, J.P. Morgan stressed that “the commentary about moderating volumes into 2Q11 on top of last quarter's price adjustments on their top 8 out of 10 media customers is providing a muted outlook for 2Q11.” J. P. Morgan currently has a Neutral rating on Akamai's shares. On Wednesday, Akamai's shares closed at $40.98, nearly $1 above the new target price.
Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/04/1040392/j-p-morgan-slashes-pt-for-akamai-technologies-akam#ixzz1KpSW3Exo
Goldman Sachs Lowers Numbers On Akamai (AKAM) On Weak Guidance
8:45 am ET 04/28/2011-
Goldman Sachs lowered estimates and its price target on Akamai Technologies (NASDAQ: AKAM) following solid Q1 results, but guidance that was below expectations. The firm maintained their Buy rating.
The firm lowered non-GAAP EPS estimates for 2011, 2012 and 2013 to $1.60, $1.85 and $2.10 from $1.66, $1.91 and $2.19 prior due to lower revenues, lower gross margins and a higher tax rate. The firm lowered their price target from $52 to $45.
Goldman said the 2Q guide-down was attributed to moderating video traffic growth and renewal of large deals in Q1.
For more ratings news on Akamai Technologies click here and for the rating history of Akamai Technologies click here.
Shares of Akamai Technologies are down 12 percent in pre-open trading to $35.90.
FBR Capital Maintains a 'Market Perform' on Akamai (AKAM); Good 1Q, but Business Deceleration Drives Disappointing Guidance
7:07 am ET 04/28/2011 -
FBR Capital maintains a 'Market Perform' on Akamai Technologies (NASDAQ: AKAM), PT lowered from $44 to $40. FBR analysts says, "Last night Akamai reported a good quarter with slight upside to revenue and EPS. While the deceleration of the business was expected, the company s guidance suggests further deceleration in 2Q, which will most likely disappoint investors. We have long believed that the growth rates of 2010 were not sustainable, as they were partly driven by easy comparables from a tough 2009 and from a dramatic acceleration of traffic growth. In 2011, aside from tougher comparables, Akamai is also being adversely affected by a large number of significant deals that were reset at lower prices in 1Q and by a moderation of traffic growth." "For 2011, we trimmed our revenue and pro forma EPS estimates from $1.19 billion and $1.57 to $1.17 billion and $1.55, respectively. For 2012, we lowered our revenue and pro forma EPS estimates from $1.37 billion and $1.76 to $1.32 billion and $1.75, respectively."
Morgan Stanley Downgrades Akamai Technologies (AKAM) to Equalweight
9:39 am ET 04/28/2011-
Earlier, Morgan Stanley downgraded Akamai Technologies (NASDAQ: AKAM) from Overweight to Equalweight following Q1 results and weak guidance after the close.
For more ratings news on Akamai Technologies click here and for the rating history of Akamai Technologies click here.
Shares of Akamai Technologies are down 15% in pre-open action.
.
Akamai Shares Fall After Second-Quarter Revenue Forecast Misses Estimates
(I think this one is better?)
By Danielle Kucera - Apr 27, 2011 3:16 PM MT
Akamai Technologies Inc. (AKAM), which provides server space that helps websites load faster, dropped in late trading after its second-quarter revenue forecast fell short of analysts’ estimates.
Akamai decreased $3.81, or 9.3 percent, to $37.17 as of 4:57 p.m. New York time in extended Nasdaq Stock Market trading. Sales will be $270 million to $280 million, Chief Financial Officer J. Donald Sherman said today on a conference call. Analysts in a Bloomberg survey predicted $280.7 million.
Most of the company’s revenue comes from services such as application acceleration, managing digital rights to content and cloud-computing security. The company delivers data for Apple Inc. (AAPL)’s iTunes and streams video for Netflix Inc. (NFLX) Sales may have been crimped by pressure on pricing, said Michael Olson, an analyst with Piper Jaffray & Co. in Minneapolis.
“They indicated pricing was coming down because of renewal of a whole bunch of contracts,” Olson, who rates the stock “overweight,” said in an interview before the forecast was announced on the call. “The guidance will tell us whether the pricing environment is truly stable. If they guide below the street, there’s continued deceleration.”
Profit excluding some items was 38 cents a share, the Cambridge, Massachusetts-based company said in a statement. That exceeded 36-cent average analyst estimate compiled by Bloomberg. The company authorized a $150 million expansion of its share repurchase program. First-quarter sales rose 15 percent to $276 million from $240 million a year earlier. Analysts on average predicted sales would jump to $272.3 million. Net income increased 24 percent to $50.6 million, or 26 cents a share, from $40.9 million, or 22 cents, the previous year.
Profit Potential
Akamai’s shares gained 16 percent in the year before today as investors bet on the company’s potential to profit from surging Internet use. Cisco Systems Inc., the largest maker of computer-networking gear, projects global online traffic will increase fourfold from 2009 to 2014.
Akamai’s stock has also gotten a boost from speculation that the company may be a takeover target. Akamai has been the subject of more published buyout rumors than any other company since 2005, according to Bloomberg analysis.
Akamai Shares Tumble Despite Penny Beat
Michael Baron
04/27/11 - 05:46 PM EDT
Updated from 5:05 p.m. ET to include some detail on conference call, latest share price..
NEW YORK (TheStreet) -- Shares of Akamai Technologies(AKAM) were weak in late trades on Wednesday after the Cambridge, Mass.-based company edged quarterly profit expectations by a penny.
The company, which bills itself these days as a provider of "cloud optimization" services, reported normalized earnings of $72.2 million, or 38 cents a share, for the three months ended in March. Revenue rose 15% year-over-year to $276 million in the March quarter. No outlook was provided in the company's press release.
The average estimate of analysts polled by Thomson Reuters was for a profit of 37 cents a share in the March period on revenue of $272 million.
Akamai's core products include software to accelerate the delivery of Web applications and improve network security and traffic management. The company said Wednesday its "value-added" offerings, such as e-commerce and advertising applications, are doing particularly well.
"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, the company's CEO in a press release. "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."
After meandering higher immediately after the earnings report, Akamai shares turned sharply lower in after-hours trades. The drop coincided with the company's conference call, which began at 4:30 p.m. ET.
The stock was last quoted at $36.95, down 9.8%, on volume of more than 2.1 million, according to Nasdaq.com. Based on a regular session close at $40.98, the shares were up roughly 20% in the past year, but had pulled back 25% since hitting a 52-week high of $54.65 back on Dec. 8.
The reason for the drop in the shares is murky, in part because Akamai makes a point of not providing specific guidance. Illustrating the confusion about how executive comments from earlier in the call about the business environment should be interpreted was the final question of the Q&A portion where Chad Bartley of Pacific Crest Securities asked for clarity about whether Akamai was "backing away" from expectations for 15% revenue growth in fiscal 2011
Bartley was told the company doesn't give guidance and wouldn't be commenting further, although Akamai executives did allow that it's "fair to say" the company has an objective in mind.
Wall Street was split on Akamai ahead of the report with 14 of the 26 analysts covering the stock rating it at hold and the remainder split between buy (4) and strong buy (8). The median 12-month price target sits at $50.
At current levels, the stock has a forward price-to-earnings ratio of 23X based on a fiscal 2012 average analysts' view for profit of $1.79 a share, making the shares look affordable compared smaller competitors like Limelight Networks(LLNW) at 110X and Internap Network Services(INAP) at 35X.
Aside from the results, Akamai's board also approved another $150 million repurchase authorization, a second expansion of its buyback program, to be funded by cash from operations.
The company said it repurchased roughly 1 million common shares in the March quarter, spending $42.8 million for an average price of $41.60 per share. At quarter's end, Akamai had roughly 187 million outstanding common shares.
AKAM: Q1 Adj EPS 38c vs 35c Beats 37c Est
Wednesday, April 27, 2011 16:48ET
http://www.knobias.com/story.htm?eid=3.1.d1cea3c7e1b19b94dc6bbec6cd75872e5278505ee5e1745b0f5d353657fd1db2
QUARTER RESULTS
Akamai Technologies Incorporated (AKAM) reported Q1 results ended March 2011. Q1 Revenues were $275.95M; +14.96% vs yr-ago; BEATING revenue consensus by +1.44%. Q1 EPS was 26c. Adjusted Q1 EPS was 38c; +8.57% vs yr-ago; BEATING earnings consensus by +2.70%.
Q1 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $275.95M $240.03M +14.96% $272.03M +1.44%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 26c N/A N/A N/A N/A
Adj EPS: 38c 35c +8.57% 37c +2.70%
---------- ------------ ------------ ---------- ------------ ----------
Why is this stock falling through the floor in the after hours?
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
percent year-over-year
-- 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
program
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.
About Akamai
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.
Financial Statements
http://www.knobias.com/story.htm?eid=3.1.798ec3f8a7aed52b240f05ea010a1a02c591464b9418f57b742f3414b825422d
Good luck with earnings release. I'm long with June $45 covered calls as a little downside protection. Call premiums are pretty bullish though likely due to acquisition rumors rather than earnings whisper
CONSENSUS ESTIMATES:
AKAM: To Release Q1 Results Apr 27 [AMC]
Tuesday , April 26, 2011 13:00ET
Akamai Technologies Incorporated (Nasdaq NM: AKAM) is scheduled to release its Q1 financial results on April 27, 2011, after the close of the market (AMC).
CONSENSUS ESTIMATES:
Q1 Revenue: $272.03 million
Q1 EPS: $0.37 per share
PREVIOUS PERIOD:
Prev Q1 Revenue: $240.03 million
Prev Q1 EPS: $0.35 per share
Akamai Loss to Limelight to Be Reheard by U.S. Appeals Court
By Susan Decker - Apr 21, 2011 2:25 PM MT
Business ExchangeBuzz up!DiggPrint Email .Akamai Technologies Inc. (AKAM) persuaded a U.S. appeals court to reconsider whether Limelight Networks Inc. infringed a patent over software that speeds delivery of Web videos.
A three-judge panel of the U.S. Court of Appeals for the Federal Circuit said in December Limelight didn’t infringe the patent. In an order posted on the court’s website today, the Federal Circuit said the dispute will be considered by all of the court’s active judges.
Akamai’s lawsuit in 2006 accused Tempe, Arizona-based Limelight of building its business on technology developed by Akamai’s founders at the Massachusetts Institute of Technology in Cambridge.
The case was filed as Akamai, also based in Cambridge, faces increased competition from Limelight, Level 3 Communications Inc. (LVLT) and Cotendo Inc. over CDNs, which distribute movies, music and software to computers on behalf of services such as Hulu LLC and Netflix Inc. (NFLX)
The Federal Circuit in Washington, which specializes in U.S. patent law, will consider whether a company should be found liable for infringing a patent if separate entities perform different steps in an invention.
A federal jury in Boston in 2008 sided with Akamai before the judge reversed the $45.5 million verdict. The judge ruled that Limelight’s actions alone didn’t use the Akamai technology, meaning it couldn’t be held liable. Three judges of the Federal Circuit affirmed that decision in December.
Submit New Arguments
The appeals court today vacated the panel’s decision and ordered lawyers in the case to submit new written legal arguments. It gave no date for when the case would be heard. Limelight said today it didn’t infringe the Akamai patent.
“Limelight believes the decision of the panel was correct and should be affirmed,” the company said in a statement. “This was not an issue of first impression for the panel -- its ruling affirmed the court’s precedent from earlier decisions. Limelight Networks welcomes the opportunity to assist the Court in addressing this area of the law.”
Limelight fell 4 cents to $6.94 at 4 p.m. New York time in Nasdaq Stock Market trading. Akamai rose 4 cents to $39.98.
The case is Akamai Technologies v. Limelight Networks, 2009-1372, U.S. Court of Appeals for the Federal Circuit (Washington). The lower court case is Akamai Technologies v. Limelight Networks Inc. (LLNW), 06cv11109, U.S. District Court, District of Massachusetts (Boston).
AKAM gained 4.31% on 04/18/11 and a total percentage of 6.29% in the past 2 days
AKAM is trading in the range of $34.60 - $39.97 in the past 30 days.
Money Flow Index (MFI) is bullish and moving up for AKAM.
AKAM formed a bullish 5-day simple moving average and 10-day simple moving average crossover.
The 10-day simple moving average is bullish and moving up for AKAM.
Average volume increase over 5% for AKAM.
Stock performance base on day of week in the past 90 days.
Monday: -4.45%
Tuesday: -0.80%
Wednesday: -2.18%
Thursday: -12.79%
Friday: -4.95%
IBM Teams With Akamai to Accelerate Applications Across the Web, and From the Cloud to the Enterprise
IBM On Tuesday April 12, 2011, 9:00 am EDT
LAS VEGAS and ARMONK, N.Y., April 12, 2011 /PRNewswire/ -- IBM (NYSE: IBM) today announced new offerings designed to speed the delivery of Web and cloud applications to the employees, partners and customers who rely on them. The offerings are part of a multi-phase initiative that integrates IBM WebSphere technology with Akamai's (NASDAQ:AKAM - News) application delivery network.
The continuing rise of interactive Web applications, such as collaboration and supply chain management, and the rapid growth of mobile applications are placing new demands on businesses' data centers and Internet infrastructure. When these systems are overburdened, it becomes difficult to deliver the intended user experience, resulting in poor application adoption, lost revenue and productivity. At the same time, businesses today have high expectations for Web application availability and performance. They are increasingly attracted to the flexibility of cloud delivery models, but they don't want to sacrifice application performance.
In the past, the only way to improve application performance over the Internet was to build out data centers. Similarly, the only way to ensure that cloud applications performed well within the enterprise was to build complex acceleration infrastructures with each individual cloud service provider. Last year, however, IBM and Akamai set about addressing these challenges with new offerings that accelerate traffic between the public cloud and the data center, and in turn, improve application performance for users both inside and outside the enterprise.
A Cost Effective Alternative to Building More Data Centers
As part of its relationship with Akamai, IBM is introducing WebSphere Application Accelerator for Public Networks, which is available now. In the future, IBM plans to make two additional offerings, WebSphere Application Accelerator for Hybrid Networks, and a supporting product – IBM DataPower Edge Appliance XE82.
IBM WebSphere Application Accelerator for Public Networks helps businesses deliver applications faster by reducing the time it takes for information to move from the data center across the Internet to users on the public Internet. The solution also helps protect and secure applications through a scalable network of tens of thousands of servers that can be instantly called upon to serve unexpected bursts of traffic or to protect against intentionally malicious attacks. WebSphere Application Accelerator for Public Networks is available now in the U.S., Australia, Brazil, Canada, New Zealand and Singapore, and will be rolled out in other countries over the course of the year.
To speed enterprise access to public cloud and software as a service applications, IBM plans to introduce IBM WebSphere Application Accelerator for Hybrid Networks, which will create a hybrid network between private enterprise networks and the public Internet. Clients seeking to increase the speed and reliability of their interactions with public cloud and software as a service applications will benefit from this offering.
To bring Akamai's technology into their private networks, clients using IBM WebSphere Application Accelerator for Hybrid Networks will require IBM's DataPower Edge Appliance XE82. This appliance is expected for the first time to give enterprises the ability to bring the benefits of the Akamai network inside their firewalls, speeding access to applications hosted in the public cloud.
By monitoring the strain on data center resources, IBM expects the Edge Appliance to add a new layer of intelligence to the new WebSphere Application Accelerator solutions. Through this blend of locally owned and remotely rented network and computing infrastructure, clients will be able to boost application availability and speed both inbound and outbound network traffic.
In addition to its role in bringing Akamai inside clients' firewalls, IBM's DataPower Edge Appliance XE82 also is expected to help clients using IBM WebSphere Application Accelerator for Public Networks achieve faster application delivery while reducing data center, infrastructure and network costs.
"The applications we depend on both as consumers and in the enterprise require a great deal of data center resources," said Marie Wieck, general manager, application and integration middleware, IBM. "The new solutions we've created in collaboration with Akamai provide clients with a cost-effective and secure way of speeding the delivery of applications from the enterprise through the Internet to the end-user and back."
BrandMaker GmbH, Europe's leading supplier of marketing resource management systems, believes the WebSphere Application Accelerator for Public Networks will cost-effectively speed the delivery of its own software, which is provided to clients around the world through the cloud. The company's software is currently used by more than 1,500 customers with operations in 84 countries. Among its clients are Commerzbank, Ernst & Young, Lufthansa, Sara Lee, Siemens and UBS and many other well-known brands.
"This combination of IBM and Akamai technologies represents the future for the delivery of software as a service," said Mirko Holzer, CEO, BrandMaker GmbH. "Until now, if you wanted to offer software as a service you needed to use data centers around the world and spend millions of dollars synchronizing their operations. Using this offering, BrandMaker and other cloud providers can offer clients around the world a faster user experience at a price they can afford."
"Enterprise users of cloud-based or software as a service applications are often subjected to unacceptable performance and availability," said Willie Tejada, vice president, Application and Site Acceleration, Akamai. "Together, IBM and Akamai have the technologies needed to address the challenges posed by these increasingly popular application delivery models. The availability of the public and hybrid network products will also help customers bring their WebSphere applications to market faster, more efficiently, and at less cost."
Akamai and Synacor Unveil Demonstration of Technology to Enable TV Everywhere Services
Monday , April 11, 2011 06:00ET
LAS VEGAS, April 11, 2011 /PRNewswire/ -- NATIONAL ASSOCIATION OF BROADCASTERS SHOW -- Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, and Synacor, the leading provider of personalized homepages and online entertainment services to operators, today unveiled a technology demonstration designed to show how programmers and operators can easily facilitate new TV Everywhere services. TV Everywhere is a new model being embraced by programmers and system operators as a way to provide paying subscribers with access to their favorite TV programming across multiple devices. The business objective is to create an easy way for consumers to enjoy the content they consume on television across all of their devices, including PCs, tablets and mobile devices.
The demonstration showcased this week at NAB unveils a simplified way to connect programmer content libraries with operator subscribers in the context of TV Everywhere by leveraging Akamai's identity services, a common standards-based set of APIs, along with Synacor's authentication and authorization platform, which work together to grant entitlement of content to authorized subscribers.
TV Everywhere-type business models offer a tremendous opportunity to build subscriber loyalty and add value for operators and programmers alike. One of the practical challenges in bringing TV Everywhere to market is how to quickly implement the entitlement models at the center of these services. Seamlessly connecting programmers, operators and consumers typically requires individual integrations and can quickly get complex. Equally important is ensuring a consumer experience that minimizes barriers to accessing content, such as confusing and repetitive log-in processes.
Akamai and Synacor have each developed capabilities intended to address these challenges, aimed at providing a standardized way to bridge the gap between the involved parties, as well as enhance the consumer experience.
Each company has contributed innovative capabilities to the demonstration including:
-- Identity services for TV Everywhere to provide a single integration
point to normalize the authentication and authorization content requests
between programmers and operators through a common, standards-based set
of APIs that are architected to enable content providers to manipulate
and control access rights as a way to support new business partnerships.
-- Authentication and authorization of subscriber identity to supply
consumer and operator specific metadata for business rule decision
making.
-- Smart identity provider discovery functionality that is designed to
surface only the most relevant consumer options for login, leveraging
geo-targeting and common domain footprints.
-- Single Sign On (SSO)to minimize disruptions to the viewing experience,
an important factor for content providers hoping to increase content
consumption, viewer adoption and engagement.
-- Viewing continuity so that viewers won't miss a scene when pausing and
playing back video across many connected devices - for example from
laptop to tablet - with location and device-shifting technology.
-- Akamai HD Network integration for scalable, high-quality, secure
streaming and audience analytics.
"We've been seeing the entertainment industry undergo a major digital transformation and with new business models like TV Everywhere, the pace of innovation is growing rapidly. Akamai's cloud based infrastructure has been enabling new digital business models for years, and working with our customers in this transformation is a natural next step," said Troy Snyder, Vice President of Strategic Initiatives at Akamai. "Akamai is committed to addressing the complete needs of the programmers, operators and consumers as content libraries are expanded, more devices emerge for on-the-go viewing and the value of the content available is enhanced."
"TV Everywhere offers both operators and programmers a tremendous opportunity to extend their brands on the Web, build subscriber loyalty, and take advantage of new business models," said Ted May, Senior Vice President of Business Strategy at Synacor.
"We look forward to working more closely with Akamai to enable TV Everywhere initiatives and to taking a giant leap forward in enhancing the video experience for millions of consumers."
While the Akamai and Synacor features above are not currently commercially available, the demonstration shows the potential ease with which programmers and operators can easily reach their audiences using the strengths of the two companies' offerings.
About Synacor
Synacor powers personalized homepages and online entertainment services reaching millions of high-speed Internet subscribers worldwide. Its stable of cable, telecom, and satellite providers utilizes Synacor's best-of-breed technology solutions to deliver the next generation of video, news, gaming and other IP services across multiple devices and digital platforms. Synacor's innovative technology platforms enable its partners to quickly adapt to the evolving online landscape, driving consumer engagement and generating new revenue opportunities. Synacor is headquartered in Buffalo, NY. For more information please visit www.synacor.com
About Akamai
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
AKAM 1Q earnings 4-27-11 AMC
Akamai to Hold First Quarter Investor Conference Call on Wednesday, April 27th at 4:30 PM ET
Wednesday, March 30, 2011 06:30ET
CAMBRIDGE, Mass., March 30, 2011 /PRNewswire/ -- Akamai Technologies, Inc. (Nasdaq: AKAM), the leading provider of cloud optimization services, announced today that the company will hold a conference call for investors on Wednesday, April 27, 2011 at 4:30 p.m. ET. The call will include the company's first quarter 2011 financial results and may include forward-looking financial guidance from management. The call will also be broadcast live via the Internet at www.akamai.com.
The live dial-in information for the conference call
is:
U.S. only: (866) 730-5767
International: (857) 350-1591
Passcode: 76371792
In addition, a replay of the call will be available for one week following the conference by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using passcode No. 95542558. The archived webcast of this event may be accessed through the Akamai Website.
Akamai: Piper Sees A Bargain; Upgrades To Overweight
Mar. 25 2011 - 11:49 am
By ERIC SAVITZ
Akamai (AKAM) shares are trading higher this morning after Piper Jaffray analyst Michael Olson this morning upped his rating on the stock to Overweight from Neutral, setting a $45 price target.
Olson points out in a research note that the content delivery network company’s shares are down more than 20% since the company disclosed Q4 earnings, largely due to a disappointing Q1 outlook. He contends that the slide is overdone.
“There will be many competing online video services and ecommerce sites, but Akamai serves as a common denominator that benefits from market growth, regardless of which of those services or sites gain share,” he writes. “While there are constant pricing and competitive pressures in the space, this is balanced with a significant opportunity to benefit from the tailwinds of growth in online video and ecommerce.”
Olson contends the company’s guidance for the first quarter led investors to the conclusion that CND pricing is falling faster than in actually the case.
“We believe CDN pricing is declining at relatively normal rates, but Akamai renewed deals with 8 of the top 10 CDN customers in the last few months, which results in a step down in pricing, as is always the case with contract renewals,” he writes. “The reason these renewals were lumped together in the last few months is many usage based contracts reached the commitment levels required to trigger a renewal, which combined with typical periodic renewals of time based contracts, resulted in more renewals than normal in one quarter.”
AKAM this morning is up $1.27, or 3.4%, to $39.03.
AKAM: Merriman Ups to Buy from Neutral
Tuesday , March 22, 2011 10:50ET
Issuer: Akamai Technologies Incorporated (NasdaqNM: AKAM)
Analyst Firm: Merriman Curhan Ford & Co.
Ratings Action: UPGRADE
Current Rating: Buy (from Neutral)
This rating information was reported by TheFlyOnTheWall.
Good luck, Eastunder!
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BUSINESS SUMMARY:
Akamai® provides market-leading managed services for powering video, dynamic transactions, and enterprise
applications online. Having pioneered the content delivery market one decade ago, Akamai's services have been
adopted by the world's most recognized brands across diverse industries. The alternative to centralized Web
infrastructure, Akamai's global network of tens of thousands of distributed servers provides the scale, reliability,
insight and performance for businesses to succeed online. Akamai has transformed the Internet into a more viable
place to inform, entertain, interact, and collaborate.
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