Akamai posts 1 percent decline in 4th-quarter profit though sales increase

Akamai 4Q profit edges 1 pct. lower as costs grow

CAMBRIDGE, Mass. — Akamai Technologies Inc. posted a small decline in its fourth-quarter net income Wednesday, weighed by expenses, but revenue grew as more customers signed up for its Web traffic management technology

The Cambridge, Mass., company posted a profit of $40.1 million, or 21 cents per share, down 1 percent from fell $40.5 million, or 22 cents per share, in the same period a year earlier.

Adjusted earnings, when fully taxed, totaled 34 cents per share in the latest quarter. On this basis, analysts surveyed by Thomson Reuters were expecting a profit of 30 cents per share.

The quarter’s revenue rose 12 percent to $238.3 million from $212.6 million.

Analysts had expected revenue of $252.1 million.

“We were very pleased with how our business performed in 2009, capping a solid year with a return to double-digit revenue growth in the fourth quarter,” said Paul Sagan, president and CEO, in a statement.

The company had 3,122 customers at the end of the quarter under its recurring service contracts, a 9 percent increase year-over-year.

Operating costs rose 12 percent to $176.1 million.

For the full year, Akamai earned $145.9 million, or 78 cents per share, up slightly from a profit of $145.1 million, or 79 cents per share, in the prior year. The company had more outstanding shares in 2009, which decreases per-share results.

Revenue for 2009 rose 9 percent to $859.8 million.

Shares climbed 5 cents to $26.55 in after-hours trading. The stock had closed up 13 cents at $26.50.