Akamai recorded another quarter of solid growth and progress toward reaching our goal of being EBITDA positive by the second quarter of next year, said George Conrades, chairman and CEO of Akamai. As we continue to build revenue and manage our costs, Akamai is demonstrating that our recurring revenue and low capital expenditure business model works and supports our fully-funded business plan.

Second quarter earnings before interest, taxes, depreciation, amortization and other one-time and non-cash charges (EBITDA) was a loss of $26.5 million, lower than the first quarter 2001 EBITDA loss of $36.5 million.

Normalized net loss for second quarter 2001, before amortization and other one-time and non-cash charges, totaled $46.8 million, or $0.46 per share, compared to First Call’s consensus summary net loss of $0.50 per share. First quarter 2001 normalized net loss was $52.5 million, or $0.53 per share.

Net loss, in accordance with GAAP, for second quarter 2001 was $92.6 million, or $0.91 per share. This includes a restructuring charge of $26.2 million related to a workforce reduction and excess real estate, equity-related compensation of $11.0 million, and other non-cash charges of $8.6 million.

We delivered the numbers in a challenging macro environment. Revenue and gross profit are up, and operating expenses and capital expenditures have continued to drop as a percentage of revenue, said Timothy Weller, CFO of Akamai. Our fully-funded business plan is now a strategic weapon in the marketplace, as enterprise customers seek long-term partnerships with us. Our DSO of 52 days testifies to the quality of that customer base.

At June 30, 2001, the Company had $267.1 million of cash, cash equivalents, and short-term and long-term marketable securities as compared to $313.1 million at March 31, 2001. Capital expenditures, principally made in connection with network deployment, facilities and information systems, for the quarter were $18.2 million, down from $24.5 million in the previous quarter. At June 30, 2001, the Company had 115.1 million shares of common stock outstanding. At June 30, 2001, common stock outstanding and unexercised stock options and warrants totaled 125.5 million shares.