Apparently, that's more than enough. Akamai's shares are up more than 5% as I write this morning. And I, too, am optimistic. Though perfect numbers are unavailable, my back-of-the-napkin estimates say Speedera probably generated $27 million in revenue over the trailing 12 months. That's taken from this press release, issued in early February. The same release says Speedera did $8.28 million in sales for the second quarter ended in December, which was 20% higher than the prior quarter. That pegs its Q1 revenue at $6.9 million.
The release also goes on to say that Speedera grows at double the industry's growth rate. Akamai, the leader, has been growing by at least 20% year over year consistently. That suggests Speedera believes it can grow revenues by at least 40% year over year. Put it all together and you've got a company on track to generate $38 million in revenue for its four fiscal quarters landing in calendar 2005. Over the same period, Akamai is expected to generate at least $252 million in sales. That's a combined total of $290 million.
Of course, all of this is pure conjecture because we won't get real guidance until April, according to Akamai. Still, cash flow is likely to see a nice jump, which would help service and retire convertible debt, helping shore up the company's balance sheet for the long term. Ponder that for a moment. It wasn't more than a year ago that many in the media wondered whether Akamai could survive as a going concern. What would you call a 12-month turnaround like that? How about Rule Breaking?
For related Foolishness:
- Akamai is indeed still surfing.
- But the waves aren't as big as they were when I first covered the company.
- Akamai's refinancing may have fueled the turnaround.
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