Akamai (AKAM), the internet acceleration specialists, saw accelerating revenues in the fourth quarter of 2009. This is typically a seasonally strong quarter for Akamai due to the increase in internet shopping for the holidays.
Revenue was $238.3, up 15% sequentially from $206.5 million, and up 12% from $212.6 million in the year-earlier quarter.
Profits were good, but slightly below Q4 in 2008. GAAP Net income was $40.1 million, up 23% sequentially from $32.7 million, but down 1% from $40.5 million year-earlier. EPS (earnings per share) were $0.21, up 17% sequentially from $0.18, but down 5% from $0.22 year-earlier.
As to guidance, the March quarter is expected to be seasonally down.
With Akamai there is an argument that you should look beyond the GAAP numbers. Cash flow from operations was $124.9 million, far greater than GAAP net income. One difference is that taxes actually paid have been far lower than taxes for GAAP purchases, due to use of NOLs (net outstanding losses) generated during Akamai's startup period. However, in the analyst conference (held February 3, 2010), management said that in 2011 Akamai will become a full tax payer, so the gap between GAAP and Non-GAAP net income and EPS should narrow to more typical numbers.
Akamai believes that its value-added services will continue to drive revenues and profits as the internet bandwidth expands globally.
For details on what management said at the conference, including responses to questions from analysts, see my Akamai (AKAM) analyst conference summary for Q4 2009.
And of course see Akamai's site, www.akamai.com.
I own some Akamai stock.
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