Akamai Acquires Growth: Fool by Numbers

On Wednesday, Rule Breakers selection Akamai Technologies (Nasdaq: AKAM  ) released earnings for the fourth quarter ended Dec. 31.

  • Our table below presents data as Akamai does, according to Generally Accepted Accounting Principles. But those numbers don't tell the whole story. Excluding acquisition and other non-cash charges, Akamai beat estimates by producing $0.27 in per-share earnings on $125.7 million in revenue.
  • Accordingly, management once again raised guidance. Executives say to expect between $1.26 and $1.30 in per share earnings on $610 million to $625 million in sales during 2007.
  • If they're right, that would put Akamai more than halfway towards its long-term goal of $1 billion in annual revenue by the end of the decade.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$125,703

$82,657

52.1%

Net Profit

$20,623

$25,759

(19.9%)

EPS

$0.12

$0.16

(25.0%)

Diluted Shares

179,064

170,305

5.1%



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

77.24%

80.54%

(3.30)

Operating Margin

21.00%

25.48%

(4.48)

Net Margin

16.41%

31.16%

(14.75)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$268,736

$291,678

(7.9%)

Accounts Rec.

$86,232

$52,162

65.3%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$81,205

$54,471

49.1%

Long-Term Debt

$200,000

$200,000

0.0%



Learn the ways of the balance sheet.

Cash Flow Checkup

Q4 2006

Q4 2005

Change

Cash From Ops.

$22,570

$27,673

(18.4%)

Capital Expenditures

$22,476

$8,105

177.3%

Free Cash Flow

$94

$19,568

(99.5%)



Find out why Fools always follow the money.

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Microsoft is an Inside Value recommendation.

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 contributor Tim Beyers, ranked 1,640 out of more than 21,800 in CAPS, is a sucker for growth stocks and a regular contributor to David's Motley Fool Rule Breakers service. Tim owns shares of Akamai. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on growth stocks, Foolishness, and investing in general may be found in his blog. The Motley Fool's disclosure policy always adds up.


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