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Akamai Provides Updated Guidance for the Fourth Quarter 2009
Akamai Technologies, Inc. (NASDAQ: AKAM), the leader in powering video, dynamic transactions and enterprise applications online, announced today that it has increased its fourth quarter 2009 guidance for both revenue and profit, and will provide further commentary at today's Financial Analyst Day at The Renaissance Boston Waterfront Hotel in Boston, Massachusetts.
Revised Fourth Quarter 2009 Guidance
Akamai now expects revenue for the fourth quarter to be in the range of $230 to $235 million, or 8 to 11 percent growth from the fourth quarter of 2008, and normalized earnings to be in the range of $0.42 to $0.43 per fully diluted share. Akamai previously provided an estimate of fourth quarter 2009 revenue to be in the range of $217 to $224 million or 2 to 5 percent growth, and fourth quarter normalized earnings per fully diluted share of $0.39 to $0.41.
"The first two months of the fourth quarter tracked above our expectations," said JD Sherman, CFO of Akamai. "We have been seeing stronger volume growth this quarter as compared to the same quarter last year in our commerce and media verticals, and we anticipate this trend will continue through the end of the year."
As required by Securities and Exchange Commission Regulation G, the equivalent GAAP earnings associated with our normalized earnings per share estimate provided above is expected to be in the range of $0.19 to $0.20 per fully diluted share.
Financial Analyst Day Webcast
A live webcast of Akamai's Financial Analyst Day will be available at: www.akamai.com/analyst. In addition, an archive of the webcast will be available following the event for a limited period of time.
The Akamai Difference
Akamai® provides market-leading managed services for powering video, dynamic transactions, and enterprise applications online. Having pioneered the content delivery market one decade ago, Akamai's services have been adopted by the world's most recognized brands across diverse industries. The alternative to centralized Web infrastructure, Akamai's global network of tens of thousands of distributed servers provides the scale, reliability, insight and performance for businesses to succeed online. Akamai has transformed the Internet into a more viable place to inform, entertain, advertise, interact, and collaborate. To experience The Akamai Difference, visit www.akamai.com
Akamai Statement Under the Private Securities Litigation Reform Act
The release contains information about future expectations, plans and prospects of Akamai Technologies, Inc.'s management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including about our expected financial results for the fourth quarter of 2009. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, failure to maintain the prices we currently charge for our services; incurrence of greater than expected expenses; inability to effectively compete with existing companies and new entrants in the markets in which we operate; unexpected network and service interruptions that cause loss of revenues, increased expenses or diversion of resources; failure to increase our revenue, retain our significant customers, or keep our expenses consistent with revenues; impact of deteriorating macroeconomic conditions; failure of new services we offer to operate as expected or to gain widespread market acceptance; unexpected changes in our fourth quarter estimates or actual results for amortization of intangible assets, stock-based compensation expense, amortization of capitalized stock-based compensation, utilization of net operating loss carryforwards and gain (loss) on investments; delays in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities; and other factors that are discussed in our Annual Report on Form 10-K, our quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.