AKAMAI REPORTS RECORD REVENUE AND PROFITS FOR FIRST QUARTER 2005
Revenue grows 24 percent year-over-year to $60.1 million, a 4 percent increase from prior quarter
First quarter GAAP net income grows to $14.1 million, a 5 percent increase from prior quarter, or $0.10 per diluted share
CAMBRIDGE, Mass. – April 27, 2005 – Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today reported financial results for the first quarter ended March 31, 2005. Revenue for the first quarter 2005 was $60.1 million, a 4 percent increase over fourth quarter 2004 revenue of $57.6 million, and a 24 percent increase over first quarter 2004 revenue of $48.4 million.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, increased in the first quarter of 2005 to $14.1 million, or $0.10 per diluted share, consistent with earnings per diluted share in the prior quarter, and a significant improvement over 2004 first quarter earnings per diluted share of $0.02 per share.
“We are off to a great start this year and this quarter’s positive results demonstrate the expanding market opportunity for, and utilization of, our global, on-demand platform,” said Paul Sagan, president and CEO of Akamai. “Our goal is to continue growing revenue and earnings through increased adoption of our core delivery services, as well as new offerings for on-demand managed services and accelerating Web applications.”
The Company generated normalized net income* of $14.3 million, or $0.10 per diluted share, in the first quarter of 2005. (*See Use of Non-GAAP Financial Measures below for definitions.)
Adjusted EBITDA* for the first quarter of 2005 was $20.4 million, up 10 percent compared to $18.6 million in the prior quarter, and up 37 percent compared to $14.9 million in the first quarter of 2004. Adjusted EBITDA as a percent of revenue was 34 percent, up from 32 percent in the prior quarter. (*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations increased 20 percent to $18.7 million in the first quarter as compared to fourth quarter 2004 cash from operations of $15.6 million, and was more than double first quarter 2004 cash from operations of $8.6 million.
At March 31, 2005, the Company had approximately 127.4 million shares of common stock outstanding, and had approximately $118.0 million of cash, cash equivalents and marketable securities.
The number of total customers under long-term services contracts increased to 1,360, a 4 percent increase over fourth quarter 2004, and a 16 percent increase year-over-year. This increase marks the ninth consecutive quarter of net customer growth.
New customers in the first quarter included Connextra Limited, CTS EVENTIM AG, Fordham University, F-Secure Corporation, InterSystems, Motricity, New England Patriots, Palladium Group, Inc., 3 Suisses-Gruppe, U.S. Department of Agriculture (USDA), and West Elm, among others.
Sales through resellers and sales outside the United States accounted for 25 percent and 20 percent, respectively, of revenue for the first quarter of 2005.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-888-689-4521 (or 1-706-645-9202 for international calls). 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 1-800-642-1687 (or 1-706-645-9291 for international calls) and using conference ID No. 5075937.
Akamai® is the leading global service provider for accelerating content and business processes online. More than 1,300 organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is “The Trusted Choice for Online Business.” For more information, visit www.akamai.com.
For more information, please contact:
Tel: 0870 7000 166
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