AKAM posts lower than expected loss of 60c a share
Akamai second-quarter loss lower than expectations
NEW YORK, Oct 18 (Reuters) - Akamai Technologies Inc.(NasdaqNM:AKAM - news) on Wednesday reported a lower-than-expected third-quarter loss of 60 cents a share as demand for its services that speed video and Web pages over the Internet rose.
For the quarter, before equity related non-cash compensation charges and amortization of intangible assets, its loss totalled $55.7 million, or 60 cents per share.
Wall Street had expected the company to lose 68 cents in the quarter, according to research firm First Call/Thomson Financial's consensus of 17 analysts.
Cambridge, Mass.-based Akamai, which became publicly traded Oct. 29, 1999 at $26 a share, reported revenue of $27.2 million, 50 percent higher than the second quarter and significantly larger than the $900,000 it earned as a private company the same time last year. Analyst had expected the company to generate $24.9 million in revenue, according to First Call/Thomson Financial, with those estimates ranging from $24 million to $25.5 million.
During the third quarter the company posted a net loss of $304.1 million, or $3.27 a share.
Meanwhile, the company said its customer base under recurring contracts grew to 1,115, up from 895 in the second quarter, and its network grew to 6,060 servers up from 4,250.
Shares of Akamai Wednesday fell $8-3/4 or nearly 18 percent, to $40-3/8 before its earnings were released |
