Akamai surges after reporting better-than-expected revenue

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Online content distribution company Akamai Technologies Inc just reported better-than-expected revenue, boosted by its security services, while also announcing a $1 billion share buyback program.

Shares in Akamai, which has customers such as EMC, MTV Networks and Autodesk, rose around 9 percent to $44.66 in after-hours trading yesterday.

Quarterly revenue from the firm’s performance and security business, which offers cloud-related security products, grew 16.4 percent to $286 million. Akamai’s cloud security offerings essentially protect websites and Internet applications against hackers.

Meanwhile, revenue from its media delivery services business fell by 1.8 percent to $247.1 million. Net income dropped to $88.4 million (49 cents per share) in the fourth quarter ending December 31st, from $97.1 million (54 cents per share) compare with the year before.

In the quarter, Akamai earned 72 cents a share (excluding items), beating the average analyst estimate of 62 cents. Revenue overall rose to $579.2 million from $536.3 million, which was more than average analyst estimates of around $568.7 million.

SOURCE: Reuters.

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