Akamai Technologies (Nasdaq: AKAM), a service provider for improving the delivery of content and applications over the Internet (from live and on-demand streaming videos to conventional content), is scheduled to report its Q1-2009 earnings after the market closes on Wednesday (April 29). The company with diverse suite of solution and strong customer base is expected to report its first quarter results in line with the market expectations.
Diversified business solution and strong customer base
The company offers its services and solutions to help businesses, government agencies and other enterprises for the needs such as digital media and software distribution and storage; content and application delivery; application performance and other specialized Internet-based offerings. Further, the company placed an extensive network infrastructure that includes more than 40,000 servers located in more than 900 networks in approximately 70 countries.
As of December 31, 2008, the company’s customers include world’s leading corporations such as Adobe, Apple, Audi, Best Buy, Burger King, EMC, Hitachi, L’Oreal, Microsoft, MTV Networks, MySpace, the National Basketball Association, Nintendo, SAP and Victoria’s Secret. The company also offers its services to government agencies and public sector customers including the Federal Emergency Management Agency, the National Center for Missing and Exploited Children, the US Air Force, the US Department of Defense, the US Food and Drug Administration and the US Department of Labor. Further, no customer accounted for 10% or more of total revenues for the years ended December 31, 2008, 2007 or 2006.
Strong performance during the previous financial year
In addition to this, the company has reported a strong financial performance for the fourth quarter and the entire financial year of 2008. Revenue for the fourth quarter 2008 was $212.6 million, an 8 percent increase over third quarter revenue of $197.3 million, and a 16 percent increase over fourth quarter 2007 revenue of $183.2 million. Total revenue of the company for FY2008 was $790.9 million, a 24 percent increase over $636.4 million in 2007. The increase in revenue is primarily attributable to an increase in the number of customers under recurring revenue contracts, as well as increases in traffic and additional services sold to new and existing customers.
The company’s normalized net income for the fourth quarter of 2008 reached to $82.2 million, or $0.44 per diluted share, an 11 percent increase over prior quarter normalized net income of $74.2 million, or $0.40 per diluted share.
