Glenn, great news from Akami. Could be a buying opportunity.
> BOSTON, April 18 (Reuters) - Akamai Technologies Inc.
on Wednesday reported a first-quarter operating loss
of $2.2 billion mostly due to a non-cash impairment charge as
it works to overcome slowing demand for its services that speed
the delivery of Internet Web pages.
After the market closed, Cambridge, Mass.-based Akamai said
it posted a normalized net loss of $52.5 million, or 53 cents a
share, before equity-related non-cash compensation charges,
amortization and other non-cash charges. That compared with a
net loss of $35.4 million, or 47 cents a share, in the
year-earlier period.
Analysts, on average, were looking for Akamai to post a net
loss of 55 cents a share, according to research firm Thomson
Financial/First Call.
Akamai said the non-cash impairment charge largely reflects
a write-down of $1.925 billion from its purchases of Intervu
Inc. and Network24 Communications.
Akamai said revenue rose 457 percent to $40.2 million. That
was in line with the company's lowered revenue forecast of $39
million to $41 million made earlier this month. The company's
previous first-quarter estimate called for $45 million in
revenue.
Akamai shares closed up 49 cents to $9.04 Wednesday on the
Nasdaq. As of Tuesday, the stock was off about 59 percent this
year, underperforming the 23 percent decline in the
technology-laced Nasdaq. |
