Akamai at It Again: Fool by Numbers

On July 26, Motley Fool Rule Breakers selection Akamai Technologies (Nasdaq: AKAM  ) released Q2 2006 earnings for the period ended June 30.

  • Akamai earned $0.20 per share after excluding amortization of intangibles, equity-related compensation, and a portion of its net loss carryforward. That beat Street expectations by $0.02.
  • Sales of $100.6 million also easily exceeded estimates. Gross margin edged slightly lower, however.
  • Akamai passed 2,000 recurring revenue customers for the first time during Q2.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$94,710

$100,649

$64,649

55.7%

Net Profit

--

$11,264

$15,900

(29.2%)

EPS

$0.18

$0.07

$0.11

(36.4%)

Diluted Shares

175,612

149,986

17.1%



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

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

78.94%

80.28%

(1.34)

Operating Margin

17.18%

26.55%

(9.37)

Net Margin

11.19%

24.59%

(13.40)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$258,931

$103,893

149.2%

Accounts Rec.

$63,963

$40,366

58.5%



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$62,247

$54,930

13.3%

Long-Term Debt

$200,000

$256,614

(22.1%)



Learn the ways of the balance sheet.

Cash Flow Checkup

Q2 2006

Q2 2005

Change

Cash From Ops.

$27,746

$16,924

63.9%

Capital Expenditures

$14,227

$9,805

45.1%

Free Cash Flow

$13,519

$7,119

89.9%



Find out why Fools always follow the money.

Related Companies:

  • Limelight Networks
  • SAVVIS (Nasdaq: SVVS  )
  • VitalStream (Nasdaq: VSTH  )

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.

Akamai is a Motley Fool Rule Breakers selection. Ask us for an all-access pass to the service to get a closer look at the four multibagger stocks the team has uncovered. Go ahead, you've got nothing to lose. Your pass is free and it's good for 30 days.

Fool contributor Tim Beyers owns shares of Akamai. You can find out what else is in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.


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