Akamai: Strong third quarter, execs shuffled

Akamai: Strong third quarter, execs shuffled

Summary: Akamai loses its president and director -- potentially to Yahoo -- as third quarter earnings soar.

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Although Akamai has produced strong numbers for the third quarter of 2011, all of that might overshadowed by major shuffle at the executive level.

Akamai reported a net income of $42.3 million, or 23 cents a share (statement) for the third quarter. Non-GAAP earnings were 34 cents a share on a revenue of $281.9 million. Wall Street was expecting third quarter earnings of 33 cents a share on revenue of $278.9 million.

But the real story starts with the departure of Akamai president and director David Kenny. Although he will continue to serve as a business strategy consultant, this exit is fueling rumors that Kenny is a prime candidate for the Yahoo CEO post.

Already a Yahoo board member, Kenny said in prepared remarks, "While I now want to return to my first passion of pursuing emerging opportunities on the consumer Internet, I will miss the great people at Akamai and their relentless pursuit of excellence in everything they do."

For the meantime, Akamai CEO Paul Sagan was reappointed by the company's board of directors as president in addition to being the chief executive.

Continuing on, Akamai has appointed Kumud Kalia as chief information officer, who formerly ran information services organization Direct Energy.

Rick M. McConnell rounds out the shuffle as Akamai's new executive vice president of products and development after most recently being seen as vice president and general manager of unified communications over at Cisco's Voice Technology Group.

By the numbers:

  • Normalized net income: $63.4 million
  • Repurchased approximately 6.8 million shares of its common stock for $155.1 million, averaging $22.75 per share
  • Sales through resellers and sales outside the United States accounted for 19 percent and 29 percent, respectively, of Q3 2011 revenue.

Related:

Topics: Symantec, Apple, Cisco, iPhone, Operating Systems, Smartphones, Unified Comms

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