On April 26, Motley Fool Rule BreakerAkamai Technologies (NASDAQ:AKAM) released Q1 2006 earnings for the period ended March 31, 2006.
- Akamai's $90.8 million in Q1 sales set a new quarterly record and blew away estimates.
- GAAP per-share earnings included $0.10 worth of charges for stock-based compensation, amortization of intangibles, and taxes. Excluding these non-cash items, net income equaled $29.4 million, or $0.17 per stub -- good enough to beat Street estimates by a penny.
- Owner earnings came in at $12.9 million, for a 14.3% OE margin. That's lower than the 20% Akamai has been able to deliver historically.
- The company raised its full-year guidance to at least $380 million in sales, which would equal a 34% year-over-year gain, and $0.73 in normalized per-share earnings, which would equal a 40% year-over-year gain.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|---|
|
Sales |
$85,390 |
$90,825 |
$60,096 |
51.1 |
|
Net Profit |
-- |
$11,495 |
$14,079 |
(18.4) |
|
EPS |
$0.16 |
$0.07 |
$0.10 |
(30) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|
|
Gross Margin |
78.73% |
80.82% |
(2.09) |
|
Op. Margin |
19.43% |
27.20% |
(7.77) |
|
Net Margin |
12.66% |
23.43% |
(10.77) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$284,615 |
$83,483 |
240.9 |
|
Inventory |
$- |
$- |
N/A |
|
Accounts Rec. |
$55,798 |
$34,285 |
62.7 |
|
Liabilities |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Long-Term Debt |
$200,000 |
$256,614 |
(22.1) |
|
Accounts Pay. |
$61,302 |
$46,105 |
33 |
Learn the ways of the balance sheet.
Cash Flow Checkup
|
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|
|
Cash From Ops |
$33,161 |
$18,702 |
77.3 |
|
Capital Expend. |
$16,174 |
$9,719 |
66.4 |
|
Free Cash Flow |
$16,987 |
$8,983 |
89.1 |
Find out why Fools always follow the money.
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Related Foolishness:
- And you thought Q4 and fiscal 2005 went well.
- Akamai helped this Joe Oddlot get scoreboard on Wall Street.
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 owns shares of Akamai. You can find out what is in his portfolio by checking Tim's Fool profile . Microsoft is an Inside Value recommendation. The Motley Fool has an ironcladdisclosure policy.
