Akamai's Q4 shines; new CFO, acquisition also announced

Summary:For the year, Akamai had a GAAP net income of $201 million, or $1.07 a share, and a revenue of $1.159 billion.

It's been a big day for Akamai Technologies, now topped off with a stellar quarterly earnings announcement that handily beats Wall Street expectations.

Akamai reported fourth quarter earnings of $60 million, or 33 cents a share (statement). Non-GAAP earnings were 45 cents a share on a revenue of $324 million, up 15 percent from the prior quarter.

Wall Street was looking for earnings of 40 cents a share on revenue of $311.2 million.

For the year, Akamai had a GAAP net income of $201 million, or $1.07 a share, and a revenue of $1.159 billion.

CEO and president Paul Sagan commented in prepared remarks:

Akamai posted record results in the fourth quarter, with accelerated growth across our business. We believe our Content Delivery and Cloud Infrastructure solutions are stronger than ever, and we look forward to further enhancing our Cloud Infrastructure portfolio with the completed acquisition of Blaze and the planned acquisition of Cotendo, which may close as early as the first quarter.

Earlier today, Akamai also made two other significant announcements. First, HP's former CFO of its Americas Technology Solutions Group, James Benson, signed on as Akamai's new chief financial officer. Benson is replacing J. Donald Sherman, effective March 1st.

Second, Akamai acquired Blaze Software, a provider of front-end optimization technology, to compliment Akamai's own acceleration solutions. Financial terms of that cash transaction have not been disclosed.

By the numbers:

  • Full-year cash from operations was $453 million, or 39 percent of revenue.
  • Akamai had over $1.2 billion of cash, cash equivalents and marketable securities at the end of 2011.
  • Sales through resellers and sales outside the United States accounted for 19 percent and 28 percent, respectively, of revenue for Q4 2011.

Related:

Topics: Banking, E-Commerce, Enterprise Software

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.