Akamai Q3 2009 Financial Results

Revenue of $206.5 million, up 5 percent year-over-year

CAMBRIDGE, Mass. — October 28, 2009 — Akamai Technologies, Inc. (NASDAQ: AKAM), the leader in powering video, dynamic transactions and enterprise applications online, today reported financial results for the third quarter ended September 30, 2009. Revenue for the third quarter 2009 was $206.5 million, a 5 percent increase over third quarter 2008 revenue of $197.3 million, and a 1 percent increase from second quarter 2009 revenue of $204.6 million.

Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the third quarter of 2009 was $32.7 million, or $0.18 per diluted share, a 2 percent decrease over third quarter 2008 GAAP net income of $33.4 million, or $0.18 per diluted share, and a 9 percent decrease from second quarter 2009 GAAP net income of $36.0 million, or $0.19 per diluted share.

The Company generated normalized net income* of $70.8 million, or $0.38 per diluted share, in the third quarter of 2009, a 5 percent decrease from third quarter 2008 normalized net income of $74.2 million, or $0.40 per diluted share, and down 6 percent from the second quarter 2009 normalized net income of $75.3 million, or $0.40 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)

"We are pleased with Akamai's solid performance in the third quarter, with both promising signs of growth in high quality video online and continued strong demand for our value-added solutions," said Paul Sagan, president and CEO of Akamai. “Our results demonstrated our ability to leverage the Company's unique cost structure and scale while improving performance and reliability for our enterprise-class customers.”

Cash from operations was $105 million in the third quarter of 2009. Year-to-date cash from operations was $300 million, an increase of 19 percent over the same period last year. At the end of the third quarter of 2009, the Company had approximately $973 million in cash, cash equivalents and marketable securities.

During the third quarter of 2009, the Company repurchased approximately 2 million shares of common stock for $36.2 million at an average price of $18.41 per share.

The Company had approximately 171.2 million shares of common stock outstanding as of September 30, 2009.

Customers
The number of customers under recurring contracts at the end of the third quarter increased to a record 3,031, an 8 percent increase year-over-year.

Sales through resellers and sales outside the United States accounted for 19 percent and 28 percent, respectively, of revenue for the third quarter of 2009.

Source: Akamai Technologies, Inc.