E-business infrastructure services provider
Akamai Technologies Inc.
released its fourth quarter financial numbers today, along with a look at its year end numbers too. The company reported quarterly revenue of US$37.1 million and annual revenue of $163.2 million. That figure is up 82 percent from last year, though Akamai is still losing money.
Many companies depend on Akamai to help distribute content over the Internet quickly. Among its customers (and business partners) is Apple.
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Akamai’s Q4 earnings before interest, taxes, depreciation, amortization and other one time and non-cash charges (EBITDA) were negative $14.3 million, but that’s not entirely bad news — Akamai is quick to point out it lost more money in Q3 ($16.6 millions) and a heck of a lot more money for Q4 2000 ($45.1 million).
Akamai chairman and CEO George Conrades called the company’s fourth quarter results “positive” and said they capped a year marked by strong performance that enables Akamai to maintain a healthy balance sheet. Revenue for the quarter was about $1 million beyond the company’s expectation. Conrades also said that 20 percent of the company’s fourth quarter revenue was driven by its EdgeSuite service — which counts as customers firms like Amtrak, Houghton Mifflin, Lowe’s Companies Inc. and others.
“On the revenue side, due in large part to the recurring nature of most of our business, we believe that we will grow revenue sequentially every quarter in 2002. Our plan for this year reflects measured growth despite today’s still uncertain macroeconomic environment,” said Conrades.
The company’s highlights for 2001 included expansion into Japan via a joint venture with SOFTBANK; the extension of its global service to 13,522 servers deployed within 1,036 networks in 66 countries; New solutions aimed at vertical markets and enterprises; and more.
Akamai CFO Timothy Weller said that the company’s steadily reducing losses are indicative of a healthy future. “More than any other metric, we believe this performance testifies to the progress we’ve made in cutting operating and capital expenditures, while not increasing debt load, as we drive to produce free cash flow,” said Weller.
Akamai reported $210.5 million in cash, cash equivalents, and short and long-term marketable securities at the end of the year. That figure is about $29.1 million less than it ended its third quarter with. Capital expenditures were reduced for the quarter, from $14.7 million in the third quarter to $7.2 million in the fourth quarter.
At the end of the year Akamai had 115.1 million shares of common stock outstanding along with another 13.8 million unexercised stock options and warrants.