Akamai Reports Second Quarter 2006 Results.CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass. -- Akamai Technologies Akamai Technologies, Inc. (NASDAQ: AKAM) is a company that provides a distributed computing platform for global Internet content and application delivery, headquartered in Cambridge, Massachusetts. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AKAM AKAM Akamai Technologies, Inc. (stock abbreviation) AKAM Automated Key Access Machine ) --Revenue grew to a record $100.6 million, up 56 percent year-over-year and 11 percent over prior quarter --GAAP net income was $11.3 million, or $0.07 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, including impact of compensation charges attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to adoption of FAS 123R --Normalized net income(a) more than doubled year-over-year to $35.8 million, or $0.20 per normalized diluted share(a), and increased 22 percent over prior quarter Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today reported financial results for the second quarter ended June June: see month. 30, 2006. Revenue for second quarter 2006 was $100.6 million, an 11 percent increase over first quarter 2006 revenue of $90.8 million, and a 56 percent increase over second quarter 2005 revenue of $64.6 million. Net income in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , for the second quarter of 2006 was $11.3 million, or $0.07 per diluted share. GAAP net income in the second quarter includes equity-related compensation charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $13.2 million, or $0.07 per diluted share, on a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta basis, reflecting the Company's adoption of Financial Accounting Standard 123R on January January: see month. 1, 2006. GAAP net income also reflects a book tax rate of approximately 45 percent. The Company generated normalized net income(a) of $35.8 million, or $0.20 per normalized diluted share(a), in the second quarter of 2006, a 22 percent increase over first quarter 2006 normalized net income of $29.4 million, or $0.17 per diluted share, and a 110 percent improvement over 2005 second quarter normalized earnings Normalized Earnings 1. Earnings adjusted for cyclical ups and downs in the economy. 2. On the balance sheet, earnings adjusted to remove unusual or one-time influences. Notes: An example would be removing a land sale in which a large capital gain was realized. of $17.1 million, or $0.12 per diluted share. ((a) See Use of Non-GAAP Financial Measures below for definitions.) "We had an exceptionally strong quarter, exceeding our growth expectations," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Sagan Sagan: see Żagań, Poland. (jargon) sagan - /say'gn/ (From Carl Sagan's TV series "Cosmos") Billions and billions. A large quantity of anything. "There's a sagan different ways to tweak Emacs. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Akamai (Akamai Technologies, Inc., Cambridge, MA, www.akamai.com) A company that provides Internet content delivery with guaranteed performance using its own worldwide network. Founded in 1998 by a group of MIT scientists and Internet professionals, Akamai licensed routing algorithms developed . "We experienced robust demand for our services across many verticals, with heavier than expected customer usage resulting in part from the explosion in digital media consumption and the continued proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). around the world. Akamai is helping our customers leverage the low-cost, global reach of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to optimize optimize - optimisation the performance of their content and business applications, and create more profitable online business models." Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (a) for the second quarter of 2006 was $40.0 million, up 20 percent from $33.4 million in the prior quarter, and up from $22.7 million in the second quarter of 2005. Adjusted EBITDA as a percentage of revenue was 40 percent, up from 37 percent in the prior quarter and up from 35 percent a year ago. ((a)See Use of Non-GAAP Financial Measures below for definitions.) Cash from operations was $27.7 million in the second quarter, as compared to $33.2 million in the first quarter 2006 and $16.9 million in the same period last year. Cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has totaled $367 million at the end of the period. At June 30, 2006, the Company had approximately 155 million shares of common stock outstanding. Customers The number of customers under long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. services contracts at the end of the second quarter increased by 79 to a record 2,060, a four percent increase over first quarter 2006, and a 19 percent increase year-over-year. Sales through resellers and sales outside the United States each accounted for 22 percent of revenue for the second quarter of 2006. Quarterly Conference Call Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-888-689-4521 (or 1-706-645-9202 for international calls). A live Webcast of the call may be accessed at www.akamai.com in the Investor section. In addition, a replay of the call will be available for one week following the conference through the Akamai Website or by calling 1-800-642-1687 (or 1-706-645-9291 for international calls) and using conference ID No. 2001832. About Akamai Akamai(R) is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted Choice for Online Business." For more information, visit www.akamai.com.
Financial Statements
Condensed Consolidated Balance Sheets
(dollar amounts in thousands)
(unaudited)
June 30, December 31,
2006 2005
---------- ----------
Assets
Cash and cash equivalents $ 73,502 $ 91,792
Marketable securities 185,429 199,886
Restricted marketable securities 330 730
Accounts receivable, net 63,963 52,162
Prepaid expenses and other current assets 13,864 10,428
---------- ----------
Current assets 337,088 354,998
Marketable securities 104,396 17,896
Restricted marketable securities 3,825 3,825
Property and equipment, net 63,243 44,885
Goodwill and other intangible assets, net 132,074 136,786
Other assets 4,786 4,801
Deferred tax assets, net 324,065 328,308
---------- ----------
Total assets $ 969,477 $ 891,499
========== ==========
Liabilities and stockholders' equity
Accounts payable and accrued expenses $ 62,247 $ 54,471
Other current liabilities 9,435 7,405
---------- ----------
Current liabilities 71,682 61,876
Other liabilities 3,689 5,409
Convertible notes 200,000 200,000
---------- ----------
Total liabilities 275,371 267,285
Stockholders' equity 694,106 624,214
---------- ----------
Total liabilities and stockholders'
equity $ 969,477 $ 891,499
========== ==========
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share data)
(unaudited)
--------Three Months Ended-------- -Six Months Ended-
June March June March June June
30, 31, 30, 31, 30, 30,
2006 2006 2005 2005 2006 2005
-------- -------- -------- ------- -------- --------
Revenues $100,649 $ 90,825 $ 64,649 $60,096 $191,474 $124,745
Costs and
operating
expenses:
Cost of
revenues(a)(b) 21,195 19,316 12,752 11,524 40,511 24,276
Research and
development(a) 8,373 6,726 4,507 3,629 15,099 8,136
Sales and
marketing(a) 29,720 26,295 18,363 16,745 56,015 35,108
General and
administrative
(a)(b) 21,870 18,543 11,341 11,839 40,413 23,180
Amortization of
other
intangible
assets 2,198 2,296 520 12 4,494 532
-------- -------- -------- ------- -------- --------
Total costs and
operating
expenses 83,356 73,176 47,483 43,749 156,532 91,232
-------- -------- -------- ------- -------- --------
Operating income 17,293 17,649 17,166 16,347 34,942 33,513
Interest (income)
expense, net (3,336) (2,659) 770 1,013 (5,995) 1,783
Gain on
investments, net (2) (257) - - (259) -
Other (income)
expense, net (475) (186) (77) 726 (661) 649
-------- -------- -------- ------- -------- --------
Income before
provision for
income taxes 21,106 20,751 16,473 14,608 41,857 31,081
Provision for
income taxes 9,842 9,256 573 529 19,098 1,102
-------- -------- -------- ------- -------- --------
Net income $ 11,264 $ 11,495 $ 15,900 $14,079 $ 22,759 $ 29,979
======== ======== ======== ======= ======== ========
Net income per
share:
Basic $ 0.07 $ 0.07 $ 0.12 $ 0.11 $ 0.15 $ 0.23
Diluted $ 0.07 $ 0.07 $ 0.11 $ 0.10 $ 0.14 $ 0.21
Shares used in
per share
calculations:
Basic 154,702 153,819 130,119 127,051 154,260 128,565
Diluted 175,612 173,811 149,986 147,282 175,001 148,607
(a) Includes equity-related compensation (see supplemental table for
figures)
(b) Includes depreciation (see supplemental table for figures)
------Three Months Ended------ Six Months Ended
June March June March June June
30, 31, 30, 31, 30, 30,
2006 2006 2005 2005 2006 2005
------- ------- ------- ------- ------- -------
Supplemental financial data
(in thousands):
Equity-related
compensation:
Cost of revenues $ 533 $ 273 $ - $ - $ 806 $ -
Research and
development 3,332 1,657 129 6 4,989 135
Sales and marketing 5,040 2,589 129 47 7,629 176
General and
administrative 4,270 2,568 399 174 6,838 573
------- ------- ------- ------- ------- -------
Total equity-
related
compensation $13,175 $ 7,087 $ 657 $ 227 $20,262 $ 884
Depreciation and
amortization:
Network-related
depreciation $ 6,205 $ 5,356 $ 3,472 $ 2,915 $11,561 $ 6,387
Capitalized equity-
related compensation
amortization 27 6 - - 33 -
Other depreciation 1,137 1,035 860 939 2,172 1,799
------- ------- ------- ------- ------- -------
Total depreciation
and amortization $ 7,369 $ 6,397 $ 4,332 $ 3,854 $13,766 $ 8,186
Capital expenditures:
Purchases of property
and equipment $10,733 $13,556 $ 7,584 $ 7,598 $24,289 $15,182
Capitalized internal-
use software 3,494 2,618 2,221 2,121 6,112 4,342
Capitalized equity-
related compensation 1,242 522 - - 1,764 -
------- ------- ------- ------- ------- -------
Total capital
expenditures $15,469 $16,696 $ 9,805 $ 9,719 $32,165 $19,524
Net increase in cash,
cash equivalents,
marketable securities
and restricted
marketable
securities $26,059 $27,294 $12,695 $ 9,604 $53,353 $22,299
End of period statistics:
Number of customers
under recurring
contract 2,060 1,981 1,736 1,360
Number of employees 871 833 774 633
Number of deployed
servers 20,836 19,919 17,500 16,017
Condensed Consolidated Statements of Cash Flows
(amounts in thousands)
(unaudited)
---------Three Months Ended-----------
June 30, March 31, June 30, March 31,
2006 2006 2005 2005
--------- --------- -------- --------
Cash flows from operating activities:
Net income $ 11,264 $ 11,495 $ 15,900 $ 14,079
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization
of deferred financing costs 9,778 8,903 5,074 4,140
Equity-related compensation 13,163 7,087 657 227
Change in deferred tax assets,
net, including release of
deferred tax asset valuation
allowance - - - 158
Utilization of tax NOL
carryforward 9,178 8,764 - -
Excess tax benefits from
stock-based compensation (5,467) (5,399) - -
(Gain) loss on investments,
property and equipment and
foreign currency, net (283) (327) 319 227
Provision for doubtful
accounts 279 318 41 413
Changes in operating assets
and liabilities:
Accounts receivable, net (7,338) (3,403) (1,837) (4,761)
Prepaid expenses and other
current assets (1,205) (3,113) (1,926) 777
Accounts payable, accrued
expenses and other current
liabilities (418) 6,840 (1,846) 4,878
Accrued restructuring (494) (554) (339) (352)
Deferred revenue (602) 2,641 45 281
Other noncurrent assets and
liabilities (109) (91) 836 (1,365)
--------- --------- -------- --------
Net cash provided by
operating activities: 27,746 33,161 16,924 18,702
--------- --------- -------- --------
Cash flows from investing
activities:
Cash acquired through
business combination - - 1,717 -
Purchases of property and
equipment and capitalization
of internal-use software and
equity-related compensation (14,227) (16,174) (9,805) (9,719)
Purchase of investments (86,924) (105,005) (15,541) (10,544)
Proceeds from sales and
maturities of investments 68,966 50,766 14,231 5,203
Decrease in restricted
investments held for
security deposits - 400 - -
--------- --------- -------- --------
Net cash used in investing
activities (32,185) (70,013) (9,398) (15,060)
--------- --------- -------- --------
Cash flows from financing
activities:
Payments on capital leases - - (93) (134)
Proceeds from equity
offering, net of financing
costs - - - -
Proceeds from the issuance of
common stock under stock
option and employee stock
purchase plans 6,822 4,643 4,145 1,643
Excess tax benefits from
stock-based compensation 5,467 5,399 - -
--------- --------- -------- --------
Net cash provided by
financing activities 12,289 10,042 4,052 1,509
--------- --------- -------- --------
Effects of exchange rate
translation on cash and cash
equivalents 630 40 (431) (588)
--------- --------- -------- --------
Net (decrease) increase in
cash and cash equivalents 8,480 (26,770) 11,147 4,563
Cash and cash equivalents,
beginning of period 65,022 91,792 39,881 35,318
--------- --------- -------- --------
Cash and cash equivalents,
end of period $ 73,502 $ 65,022 $ 51,028 $ 39,881
========= ========= ======== ========
Six Months Ended
June 30, June 30,
2006 2005
---------- ----------
Cash flows from operating activities:
Net income $ 22,759 $ 29,979
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of
deferred financing costs 18,681 9,214
Equity-related compensation 20,250 884
Change in deferred tax assets, net,
including release of deferred tax asset
valuation allowance - 158
Utilization of tax NOL carryforward 17,942 -
Excess tax benefits from stock-based
compensation (10,866) -
(Gain) loss on investments, property
and equipment and foreign currency,
net (610) 546
Provision for doubtful accounts 597 454
Changes in operating assets and liabilities:
Accounts receivable, net (10,741) (6,598)
Prepaid expenses and other current
assets (4,318) (1,149)
Accounts payable, accrued expenses
and other current liabilities 6,422 3,032
Accrued restructuring (1,048) (691)
Deferred revenue 2,039 326
Other noncurrent assets and
liabilities (200) (529)
---------- ----------
Net cash provided by operating
activities: 60,907 35,626
---------- ----------
Cash flows from investing activities:
Cash acquired through business
combination - 1,717
Purchases of property and equipment and
capitalization of internal-use software
and equity-related compensation (30,401) (19,524)
Purchase of investments (191,929) (26,085)
Proceeds from sales and maturities of
investments 119,732 19,434
Decrease in restricted investments
held for security deposits 400 -
---------- ----------
Net cash used in investing activities (102,198) (24,458)
---------- ----------
Cash flows from financing activities:
Payments on capital leases - (227)
Proceeds from equity offering, net of
financing costs - -
Proceeds from the issuance of common
stock under stock option and -
employee stock purchase plans 11,465 5,788
Excess tax benefits from stock-based
compensation 10,866 -
---------- ----------
Net cash provided by financing
activities 22,331 5,561
---------- ----------
Effects of exchange rate translation
on cash and cash equivalents 670 (1,019)
---------- ----------
Net (decrease) increase in cash and
cash equivalents (18,290) 15,710
Cash and cash equivalents, beginning
of period 91,792 35,318
---------- ----------
Cash and cash equivalents, end of
period $ 73,502 $ 51,028
========== ==========
(a) Use of Non-GAAP Financial Measures In addition to providing financial measurements based on generally accepted accounting principles in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (GAAP), Akamai has historically provided additional financial metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that are not prepared in accordance with GAAP (non-GAAP). Recent legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes discourage the use of and emphasis on non-GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. We believe that the non-GAAP financial metrics we have included are useful to management and investors because they provide additional insight into our operations as well as help us assess and monitor developments in our business. Set forth below are definitions of the non-GAAP terms we use and explanations of some of the benefits provided by those metrics. Akamai defines "Adjusted EBITDA" as net income, before interest, taxes, depreciation and amortization of tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , equity-related compensation, depreciation of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. equity-related compensation, certain gains and losses on equity investments, foreign exchange gains and losses, utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of tax NOL NOL - Never Offline carryforward carryforward 1. A business operating loss that, for tax purposes, may be claimed a certain number of years in the future, often up to 15 years. and release of the deferred tax asset valuation allowance. Adjusted EBITDA eliminates items that are either not part of the Company's core operations, such as investment gains and losses, foreign exchange gains and losses and net interest expense, or do not require a cash outlay, such as equity-related compensation and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of intangible assets. Adjusted EBITDA also excludes depreciation and amortization expense, which is based on the Company's estimate of the useful life of tangible and intangible assets. These estimates could vary from actual performance of the asset, are based on historic cost incurred to build out the Company's deployed network, and may not be indicative indicative: see mood. of current or future capital expenditures. Because Adjusted EBITDA eliminates these items, Akamai considers this financial measure to be an important indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of the Company's operational strength and performance of its business and a good measure of the Company's historical operating trend. Akamai defines "Adjusted EBITDA margin" as a percentage of adjusted EBITDA over revenue. Akamai considers Adjusted EBITDA margin to be an indicator of the Company's operating trend and performance of its business in relation to its revenue growth. Akamai defines "capital expenditures" or "capex" as purchases of property and equipment and capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of internal-use software development costs. Capital expenditures or capex are disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in Akamai's condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of cash flows in the Company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. Akamai defines "normalized net income" as net income before amortization of intangible assets, equity-related compensation, depreciation of capitalized equity-related compensation, certain gains and losses on equity investments, utilization of tax NOL carryforward and release of the deferred tax asset valuation allowance. Akamai considers normalized net income to be another important indicator of the overall performance of the Company because it eliminates the effects of events that are either not part of the Company's core operations or are non-cash. Akamai defines "normalized diluted share" as diluted common shares outstanding used in GAAP net income per share calculation, excluding the effect of FAS 123R under the treasury stock method. Akamai considers normalized diluted shares to be another important indicator of overall performance of the Company because it eliminates the effect of a non-cash item. Adjusted EBITDA and normalized net income should be considered in addition to, not as a substitute for, the Company's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net income, as well as other measures of financial performance reported in accordance with GAAP. Reconciliation of Non-GAAP Financial Measures In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measure and reconciling the non-GAAP financial metrics to the comparable GAAP measures.
Reconciliation of GAAP net income to normalized net income
and Adjusted EBITDA
(amounts in thousands, except per share data)
--------Three Months Ended-------- Six Months Ended
June March June March June June
30, 31, 30, 31, 30, 30,
2006 2006 2005 2005 2006 2005
-------- -------- -------- -------- -------- --------
Net income $11,264 $11,495 $15,900 $14,079 $22,759 $29,979
Amortization of
intangible
assets 2,198 2,296 520 12 4,494 532
Equity-related
compensation 13,175 7,087 657 227 20,262 884
Amortization of
capitalized
equity-related
compensation 27 6 - - 33 -
Gain on
investments,
net (2) (257) - - (259) -
Utilization of
tax NOL
carryforward 9,178 8,764 - - 17,942 -
Release of the
deferred tax
asset
valuation
allowance - - - - - -
-------- -------- -------- -------- -------- --------
Total
normalized net
income: 35,840 29,391 17,077 14,318 65,231 31,395
Interest
(income)
expense, net (3,336) (2,659) 770 1,013 (5,995) 1,783
Provision for
income taxes 664 492 573 529 1,156 1,102
Depreciation
and
amortization 7,342 6,391 4,332 3,854 13,733 8,186
Other (income)
expense, net (475) (186) (77) 726 (661) 649
-------- -------- -------- -------- -------- --------
Total Adjusted
EBITDA: $40,035 $33,429 $22,675 $20,440 $73,464 $43,115
======== ======== ======== ======== ======== ========
Normalized net
income per
share:
Basic $0.23 $0.19 $0.13 $0.11 $0.42 $0.24
Diluted $0.20 $0.17 $0.12 $0.10 $0.37 $0.22
Shares used in
normalized per
share
calculations:
Basic 154,702 153,819 130,119 127,051 154,260 128,585
Diluted 178,358 176,644 149,986 147,282 177,817 148,607
Akamai Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under The Private Securities Litigation Reform Act of 1995, including statements concerning the expected growth and development of our business and our ability to help our customers create profitable online business models. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, unexpected increases in Akamai's use of funds, loss of significant customers, failure to increase our revenue and keep our expenses consistent with revenues, the effects of any attempts to intentionally in·ten·tion·al adj. 1. Done deliberately; intended: an intentional slight. See Synonyms at voluntary. 2. Having to do with intention. disrupt our services or network by unauthorized users or others, failure to have available sufficient transmission or server capacity, a failure of Akamai's services or network infrastructure, failure to maintain the prices we charge for our services and other factors that are discussed in the Company's Annual Report on Form 10-K for the year ended December December: see month. 31, 2005, and subsequent quarterly reports on Form 10-Q Form 10-Q See 10-Q. , and other documents periodically filed with the SEC. In addition, the statements in this press release represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release. |
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