Wed, Jul. 27, 3:00 PM
Wed, Jul. 27, 12:44 PM
Wed, Jul. 27, 12:13 PM
- Akamai (AKAM -15.9%) is sinking on concerns the buyers of its services are focusing on their own in-house solutions instead of sourcing externally.
- Apple, Amazon, Google, Facebook, Microsoft and Netflix are the company's six largest technology customers, making up 11% of Akamai's Q2 revenue (-18% Y/Y).
- From Akamai's CEO Frank Thomson Leighton on yesterday's conference call: "As we discussed on past calls, our overall revenue growth rate is unusually low this year, because of the do-it-yourself, or DIY, efforts of two of our largest customers. As these customers deliver more of their content themselves, it has meant less revenue for Akamai. In Q2, these two customers accounted for a little over 5% of our total revenue, down from 12% in Q2 of last year."
- Shares started to decline in after hours trading yesterday on the release of the company's Q2 report.
Wed, Jul. 27, 9:23 AM
Tue, Jul. 26, 5:36 PM
Tue, Jul. 26, 4:26 PM
- Akamai Technologies (NASDAQ:AKAM) has slid 6.6% after hours following Q2 earnings where it missed narrowly on revenues but grew EPS 11% even accounting for currency headwinds.
- EBITDA was $231M, up 8% and beating an expected $229.1M.
- Business is being managed in a new division structure as of Q2. Revenue by division: Media Division, $288M (down 2%); Web Division, $271M (up 15%); Enterprise and Carrier Division, $12M (up 22%).
- Revenue by solution category: Performance and Security Solutions, $327M (up 16%); Cloud Security Solutions, $87M (up 42%); Media Delivery Solutions, $197M (down 9%); Services and Support Solutions, $48M (up 18%).
- Cash from operations was $243M (42% of revenue); cash and equivalents came to $1.6B at quarter's end.
- Conference call to come at 4:30 p.m.
- Press Release
Tue, Jul. 26, 4:03 PM
Mon, Jul. 25, 5:35 PM
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Fri, Jul. 1, 3:15 PM
- Akamai (AKAM -0.9%) has confirmed it prevailed with a $51M judgment in its long-running dispute against Limelight Networks (LLNW +4.8%) over the '703 patents.
- That amount reflects damages awarded in 2008 by a jury along with interest. A separate case scheduled for trial in January involves another from the same patent family and seeks additional damages for post-2008 infringement.
- "We are extremely pleased after ten years of litigation to have a final judgment entered in Akamai's favor that recognizes Limelight's infringement and the harm it caused," said Aaron Ahola, Akamai's deputy general counsel.
- Limelight claimed a victory of sorts as well, saying it has been allocating "precious resources" to avoid a permanent injunction and back up its belief that damages would be less than requested. The company will reclaim about $12M of a $63M letter of credit held for losses, and take a charge in Q2 for the full $51M damages.
Wed, Jun. 8, 2:48 PM
- Akamai (AKAM +0.2%) has agreed to pay $652K plus $19K in interest to avoid bribery charges related to payoffs of Chinese officials by its local subsidiary.
- In February, Akamai stated in its 2015 10-K it's "conducting an internal investigation, with the assistance of outside counsel, relating to sales practices in a country outside the U.S. that represented less than 1% of our revenue in each of the years ended December 31, 2015, 2014 and 2013." The company added the SEC and DOJ were notified in Feb. 2015.
Mon, May 23, 12:39 PM
- "Politics is now a topic in every client discussion," say David Kostin and team, and the nature of today's electorate nearly assures a close race, even though prediction markets currently assign a high probability of a Clinton victory.
- When uncertainty rises, consumer staples (NYSEARCA:XLP) typically outperforms, while tech (NYSEARCA:XLK) lags.
- Getting down to names, with protectionism and tax policy two key areas of debate, buy those stocks with high U.S. sales and high effective tax rates, and avoid those with high foreign sales and low tax rates.
- High U.S. sales and high tax rates (buy): Cardinal Health (NYSE:CAH), Fidelity National (NYSE:FIS), Discover (NYSE:DFS), AmerisourceBergen (NYSE:ABC), Schwab (NYSE:SCHW), ADP (NASDAQ:ADP), Chipotle (NYSE:CMG), Reynolds America (NYSE:RAI), Express Scripts (NASDAQ:ESRX), Alliance Data (NYSE:ADS), Fiserv (NASDAQ:FISV), Paychex (NASDAQ:PAYX), Whole Foods (NASDAQ:WFM), Akamai (NASDAQ:AKAM), Intuit (NASDAQ:INTU), Southwest Airlines (NYSE:LUV).
- High foreign sales and low tax rates (avoid): Abbott Labs (NYSE:ABT), Agilent (NYSE:A), Mondelez (NASDAQ:MDLZ), XL Group (NYSE:XL), Waters (NYSE:WAT), Priceline (NASDAQ:PCLN), Transocean (NYSE:RIG), PerkinElmer (NYSE:PKI), Nvidia (NASDAQ:NVDA), Lam Research (NASDAQ:LRCX), Western Digital (NASDAQ:WDC).
Tue, Apr. 26, 4:28 PM
- Akamai (NASDAQ:AKAM) has slipped 1.5% after hours despite a beat on top and bottom lines in its Q1 results.
- EBITDA of $234M was up 5% sequentially and beat an expected $228.4M. Non-GAAP income from operations grew 1% sequentially, to $164M (operating margin of 29%, down 2 percentage points Y/Y).
- Revenue by segment: Performance and Security Solutions, $316M (up 16%); Media Delivery Solutions, $206M (down 4%); Services and Support Solutions, $46M (up 16%). In Performance and Security Solutions, Cloud Security Solutions revenue was $81M (up 46%).
- International results showed stronger gains by geo (up 24% to $170M, vs. U.S. gains of 2% to $397M).
- Conference call to come at 4:30 p.m. ET.
- Press Release
Tue, Apr. 26, 4:03 PM
Mon, Apr. 25, 5:35 PM
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Fri, Mar. 18, 2:19 PM
- Tom Leighton discloses he bought 18,126 Akamai (AKAM -0.5%) shares on Wednesday (through a trust) at a price of $55.16. His total cost was $999,830. (source: InsiderInsights.com)
- Leighton previously bought shares in 2013. His latest purchase comes after Akamai beat Q4 estimates and announced a $1B buyback in in February.
- Last week: Piper likes what it heard at Akamai's analyst day
Mon, Mar. 7, 4:07 PM
- Akamai (AKAM -0.4%) used today's analyst day (webcast) to argue IP video growth, security opportunities, and low international penetration will act as growth drivers, reports Piper's Michael Olson (Overweight rating, $69 target). He also notes the CDN leader reiterated its Q1 guidance, as well as a goal to hit $5B/year in sales by 2020 (2015 revenue was $2.2B).
- Akamai also reiterated pricing for its lower-margin media delivery business (declining as a % of sales as tech giants bring more CDN activity in-house) remains competitive, and that it plans to carry out more buybacks and acquisitions. A $1B buyback was announced in Akamai's Feb. 9 Q4 report, and the company has made a slew of small and mid-sized acquisitions in recent years.
- Shares are up 40% since the Q4 report, but remain 29% below a May high of $78.44.
Akamai Technologies, Inc. provides cloud services for delivering, optimizing and securing online content and business applications. It provides its services to improve the delivery of content and applications over the Internet. The company's solutions include delivery of conventional content on... More
Industry: Internet Software & Services
Country: United States
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