Akamai (AKAM) Report Beats Estimates (Update)

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Akamai (AKAM) was forecast to post earnings of 33 cents a share on $161 million in revenue for the third quarter

Revenue for the third quarter 2007 was $161.2 million, a six percent increase over second quarter 2007 revenue of $152.7 million, and a 45 percent increase over third quarter 2006 revenue of $111.5 million.

Net income  for the third quarter of 2007 was $24.3 million, or $0.13 per diluted share.AKAM generated normalized net income of $62.4 million, or $0.34 per normalized diluted share, in the third quarter of 2007, a 13 percent increase over second quarter 2007 normalized net income of $55.4 million, or $0.30 per diluted share, and a 49 percent improvement over 2006 third quarter normalized earnings of $41.8 million, or $0.24 per diluted share.

Akamai defines normalized net income as net income before amortization of intangible assets, stock-related compensation expense, amortization of capitalized stock-related compensation, restructuring charges and benefits, certain gains and losses on equity investments, loss on early extinguishment of debt, utilization of tax NOLs/credits and release of the deferred tax asset valuation allowance

The news sent shares up a little over 1% after hours

Douglas A. McIntyre

Aka