Last quarter, Akamai Technologies
Still, shares lost 7% in after-hours trading on the news that Akamai met Wall Street's revenue targets while beating earnings estimates. Sales landed at $319 million, and non-GAAP earnings declined 10% year-over-year to $0.24 per share.
CEO Paul Sagan pins the strong performance on customers hooking into his cloud computing and rich media delivery services. That's no surprise; Akamai is one of several content delivery partners for media powerhouse Netflix
If other media clients mirror the Netflix experience, there will be no shortage of opportunity for Akamai and its major frenemies. Both Level 3 Communications
In other news, Akamai reupped its share repurchase program to keep dilution from stock-based compensation under control. The number of fully diluted shares has actually declined by 4.8% over the last year, so management isn't entirely opposed to overshooting the stated targets.
Oh, and Sagan also took this opportunity to announce his retirement. The former TV content producer and cousin of popular science writer Carl Sagan isn't being rushed out the door -- he'll stay on until his replacement has been chosen, installed, and comfortably settled, potentially until the end of 2013. Sagan served at Akamai for 15 years, and his replacement should be someone with "direct experience in building multibillion-dollar, cloud-based businesses," according to lead independent director Martin Coyne. That's a tall order to fill.
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Fool contributor Anders Bylund owns shares in Netflix but holds no other position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. Motley Fool newsletter services have recommended buying shares of Netflix. The Motley Fool has a disclosure policy.
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