Akamai's Broken Record: Fool by Numbers

On April 26, Motley Fool Rule BreakerAkamai Technologies (Nasdaq: AKAM  ) released Q1 2006 earnings for the period ended March 31, 2006.

  • Akamai's $90.8 million in Q1 sales set a new quarterly record and blew away estimates.
  • GAAP per-share earnings included $0.10 worth of charges for stock-based compensation, amortization of intangibles, and taxes. Excluding these non-cash items, net income equaled $29.4 million, or $0.17 per stub -- good enough to beat Street estimates by a penny.
  • Owner earnings came in at $12.9 million, for a 14.3% OE margin. That's lower than the 20% Akamai has been able to deliver historically.
  • The company raised its full-year guidance to at least $380 million in sales, which would equal a 34% year-over-year gain, and $0.73 in normalized per-share earnings, which would equal a 40% year-over-year gain.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

% Change

Sales

$85,390

$90,825

$60,096

51.1

Net Profit

--

$11,495

$14,079

(18.4)

EPS

$0.16

$0.07

$0.10

(30)



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2006

Q1 2005

% Change

Gross Margin

78.73%

80.82%

(2.09)

Op. Margin

19.43%

27.20%

(7.77)

Net Margin

12.66%

23.43%

(10.77)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q1 2005

% Change

Cash+ ST Invest.

$284,615

$83,483

240.9

Inventory

$-

$-

N/A

Accounts Rec.

$55,798

$34,285

62.7



Liabilities

Q1 2006

Q1 2005

% Change

Long-Term Debt

$200,000

$256,614

(22.1)

Accounts Pay.

$61,302

$46,105

33



Learn the ways of the balance sheet.

Cash Flow Checkup

Q1 2006

Q1 2005

% Change

Cash From Ops

$33,161

$18,702

77.3

Capital Expend.

$16,174

$9,719

66.4

Free Cash Flow

$16,987

$8,983

89.1



Find out why Fools always follow the money.

Related Companies:

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 check Fool.com for more of our in-depth discussion of what the numbers mean.

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


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 513124, ~/Articles/ArticleHandler.aspx, 11/28/2014 4:49:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement