Appraising Akamai: Fool by Numbers

On Oct. 25, Motley Fool Rule Breakers pick Akamai Technologies (Nasdaq: AKAM  ) released earnings for its 2005 third quarter, which ended Sept. 30.

  • Sales and earnings benefited from a previously disclosed tax asset valuation of $255.3 million. Excluding that, earnings per share of $0.14 met analyst estimates while sales of $75.7 million barely squeaked past Street projections.

  • Q3 was the first quarter to fully reflect the benefits of the Speedera acquisition. And, with revenue up more than 40% year-over-year, the benefits clearly showed.

  • Guidance improved as well. Management now expects Akamai to earn $0.51 per stub for fiscal 2005, up from an estimate of $0.50 in July.

Figures in thousands, except per-share data.

Income Statement Highlights(What's this?)

Avg. Est.

Q3 2005

Q3 2004

% Change

Sales

$75,200

$75,713

$53,286

+42.1%

Net Profit

--

$272,260

$11,249

+2,320.3%

EPS

$0.14

$1.71

$0.08

+2,037.5%



Margin Checkup(What's this?)

Q3 2005

Q3 2004

Change

Gross Margin

79.80%

77.95%

+1.85%

Op. Margin

24.83%

25.27%

-0.44%

Net Margin

359.59%

21.11%

+338.48%



Balance Sheet Highlights(What's this?)

Assets

Q3 2005

Q3 2004

% Change

Cash + ST Invest.

$67,046

$72,572

-7.6%

Inventory

$ --

$ --

N/A

Accounts Rec.

$43,935

$28,525

+54.0%



Liabilities

Q3 2005

Q3 2004

% Change

Long-Term Debt

$200,000

$281,489

-28.9%

Accounts Pay.

$50,982

$42,045

+21.3%



Cash Flow Highlights(What's this?)

Q3 2005

Q3 2004

% Change

Cash From Ops.

$55,125

$35,662

+54.6%

Capital Expend.

$28,055

$12,963

+116.4%

Free Cash Flow

$27,070

$22,699

+19.3%

Cash flows presented on a year-to-date basis.

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Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

The Motley Fool has kicked off its ninth annual Foolanthropy campaign! Nominate your favorite charities on ourFoolanthropy discussion boardthrough Nov. 1. For guidelines on what makes a charity Foolish, visitwww.foolanthropy.com.

Fool contributorTim Beyersowns shares of Akamai. You can find out what else is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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