Akamai 2nd-quarter net income up 6 percent on rising demand for Web traffic management tech

Wednesday, July 28, 2010

Akamai 2nd-qtr net income edges up 6 percent

CAMBRIDGE, Mass. — Akamai Technologies Inc. said Wednesday that its second-quarter net income edged up 6 percent as demand for its Web traffic management technology grew.

Akamai’s quarterly net income rose to $38.1 million, or 20 cents per share, from $36 million, or 19 cents per share, in the same period last year.

Excluding charges for amortization, stock options expenses and other items, Akamai said it earned 34 cents per share in the latest quarter. That matched the average estimate of analysts polled by Thomson Reuters.

Revenue increased 20 percent to $245.3 million from $204.6 million, narrowly beating analysts’ projection of $243.3 million.

“Demand for our services grew across all verticals of our business,” said CEO Paul Sagan. “We believe our strong performance in the second quarter demonstrated continued traction for our services that enable cloud computing adoption, growth in online HD video and more effective online advertising.”

Shares of Akamai slid $2.13, or 4.8 percent, to $41.90 in aftermarket activity. The stock earlier dipped 30 cents to close at $44.03. The stock has ranged from $15.86 to $46.72 over the past year.

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