Akamai's 1Q profit rises 65 percent, tops St. view
Akamai 1st-quarter profit jumps 65 percent, beating Wall Street expectations; shares rise
CAMBRIDGE, Mass. (AP) -- Akamai Technologies Inc. said Wednesday that its first-quarter net income jumped 65 percent, helped by a tax credit, and shares rose in after-hours trading.
The company, which helps websites deliver video and other content to users, earned $71.5 million, or 39 cents per share, for the period that ended March 31. That is up from $43.2 million, or 24 cents per share, in the same quarter last year.
A research and development tax credit that the federal government extended this year added $15 million to the quarter's profit.
Excluding one-time items, profit rose to 51 cents per share from 36 cents per share.
Revenue rose 15 percent, to $368 million from $319.5 million.
The quarter's results exceeded market expectations. Analysts polled by FactSet were anticipating earnings of 47 cents per share on revenue of $358.1 million.
The increasing popularity of Internet video has propelled Akamai's growth. CEO Tom Leighton noted strong gains in its media delivery business and network cost controls.
The company's costs grew slower than revenue, rising 8 percent to $266.9 million.
Shares of Cambridge, Mass.-based Akamai increased 19 percent, or $6.09, to $42.18 in after-hours trading. Its stock added 62 cents to close regular trading at $36.09. Shares have dropped 12 percent in 2013.
