CORRECTED-UPDATE 1-Akamai posts strong quarter on higher demand, cost controls
(Corrects last paragraph to clarify that the company is based in Cambridge, Massachusetts)
* Q2 adj EPS $0.43 vs est $0.37
* Q2 revenue $331 mln vs est $325.7 mln
* Shares rise 15 pct in after-market trade
July 25 (Reuters) - Internet content delivery company Akamai Technologies Inc posted better-than-expected quarterly results on higher adoption of its cloud infrastructure services and cost controls.
Shares of Akamai, whose technology helps deliver high-definition video for online services like Netflix Inc and Hulu, were up 15 percent in after-market trade on Wednesday.
Efforts to control costs translated into strong bottom line performance, Chief Executive Paul Sagan told Reuters.
"It's just the beginning of additional cost savings that are going to come over the coming months," he said.
The company is also benefiting from rising spend on Internet initiatives.
"Even amidst the macroeconomic challenges, we are benefiting from a sub-theme of movement of business to online," Sagan said.
The company's second-quarter net income fell to $44 million, or 24 cents per share, from $47.9 million, or 25 cents per share, a year earlier.
Excluding items, it earned 43 cents per share.
Revenue for the company, which competes with Level 3 Communications and Limelight Networks, rose 20 percent to $331 million.
Analysts on average had expected earnings of 37 cents per share on revenue of $325.7 million, according to Thomson Reuters I/B/E/S.
Level 3 posted a bigger-than-expected quarterly loss earlier in the day on a fall in orders from the U.K. government.
Akamai in December acquired rival Cotendo for $268 million to strengthen its web acceleration business. The acquisition added clients such as Facebook Inc, Zynga Inc, Google Inc and AT&T Inc.
The Cambridge, Massachusetts-based company's stock has lost about a quarter of its value since the company forecast a weak second quarter on April 25. They closed at $28.25 on Wednesday on the Nasdaq. (Reporting by Sruthi Ramakrishnan and Supantha Mukherjee in Bangalore; Editing by Maju Samuel, Sriraj Kalluvila)