(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 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
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
"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
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)