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Akamai posts slight increase in Q1 profit

Company recorded revenue of $210.4m, up 12% over the year

By CBR Staff Writer

Web content delivery company Akamai Technologies has reported a slight increase in net income to $37.1m for the first quarter 2009, compared to $36.9m in the year-ago quarter, on revenue up 12% at $210.4m.

According to the company, operating income grew 5% to $56.11m, while diluted EPS was flat at $0.20. Cash from operations was $90.5m compared to $88m in the same period last year. The company said sales through resellers accounted for 17% of total revenue, and said sales outside the US accounted for 28% of total revenue. The number of customers under long-term services contracts increased 10% to 2,950.

The company also announced a $100m share repurchase program to be funded by cash from operations. It said it plans to use the proceeds to offset dilution created by ongoing equity compensation programs.

JD Sherman, CFO at Akamai, said: The board’s authorization of a share-repurchase program reflects our continued confidence in the future of our business and our focus on providing an attractive return on investment to our shareholders. We plan to fund this program out of our operating cash flow while maintaining flexibility to make strategic investments, which is a testament to our belief in the strength of our business.

Akamai provides managed services for powering rich media, dynamic transactions, and enterprise applications online. The alternative to centralized Web infrastructure, Akamai’s global network of tens of thousands of distributed servers provides the scale, reliability, insight and performance for businesses to succeed online.

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