Akamai, Way Up High: Fool by Numbers (AKAM)

Akamai, Way Up High: Fool by Numbers

On Feb. 6, network load-balancing expert Akamai Technologies (Nasdaq: AKAM ) released earnings for the 2007 fiscal year -- a period ending Dec. 31, 2007.

Remember the inflection point in earnings growth that happened a couple of quarters ago? Consider that trend reaffirmed, with both gusto and elan.

That's in spite of some serious share dilution, as Akamai loves to pay its employees in stock options but has never bought back a single share of its own stock.

The shares are 45% cheaper today than they were a year ago, but the five-year return is still a staggering 2,135%.

(Figures are in millions, except per-share data.)

Income Statement Highlights

	FY 2007	FY 2006	Change
Sales	$636.4	$428.7	48.5%
Net Profit	$101.0	$57.4	75.9%
EPS	$0.56	$0.34	64.7%
Diluted Shares	185.1	176.8	4.7%

Get back to basics with the income statement.

Margin Checkup

	FY 2007	FY 2006	Change*
Gross	73.7%	78.1%	(4.4)
Operating	22.8%	19.4%	3.4
Net	15.9%	13.4%	2.5

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	FY 2007	FY 2006	Change
Cash + ST Invest.	$545.7	$268.7	103.0%
Accounts Rec.	$118.9	$86.2	37.9%

Liabilities	FY 2007	FY 2006	Change
Long-term Debt	$199.9	$200.0	(0.1%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	FY 2007	FY 2006	Change
Cash From Ops.	$235.4	$132.0	78.4%
Capital Expenditures	$100.5	$69.3	44.9%
Free Cash Flow	$134.9	$62.6	115.4%
Owner Earnings	$72.4	$28.7	152.6%

Free cash flow is a Fool's best friend.

Competitive Context

	Market Cap	Trailing P/E Ratio	CAPS Rating
Citrix Systems (Nasdaq: CTXS )	$6,530	29.6	****
Akamai	$5,390	66.9	****
F5 Networks (Nasdaq: FFIV )	$1,780	24.8	***
SAVVIS (Nasdaq: SVVS )	$1,050	4.5	**
Limelight Networks (Nasdaq: LLNW )	$586	N/A	**

Using the latest reported numbers from Capital IQ. Keep your partners close and the competition in your vest pocket.

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"Fool by Numbers" provides raw earnings information in a timely, convenient package. But since numbers never provide the whole story, check Fool.com for in-depth discussions of the meaning behind the earnings.

At the time of publication, Anders Bylund was an Akamai shareholder but had no other position in any other company mentioned above. Fool rules are here.

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