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Akamai revenue beats; to buy back $1 billion of shares

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Reuters
Last Updated : Feb 10 2016 | 3:07 AM IST

(Reuters) - Online content distributor Akamai Technologies Inc reported better-than-expected quarterly revenue, helped by higher demand for its security services, and announced a $1 billion share buyback programme.

Shares of Akamai, whose customers include EMC Corp , MTV Networks and Autodesk Inc , rose 9 percent to $44.66 in after hours trading on Tuesday.

Revenue from the company's fast-growing performance and security business, under which it offers cloud security products, rose about 16.4 percent to $286 million.

Akamai's cloud security protects websites and other Internet applications against hackers.

Revenue from media delivery solutions business fell 1.8 percent to $247.1 million.

Net income fell to $88.4 million, or 49 cents per share, in the fourth quarter ended Dec. 31 from $97.1 million, or 54 cents per share, a year earlier.

Excluding items, Akamai earned 72 cents per share, beating average analyst estimate of 62 cents.

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Revenue rose to $579.2 million from $536.3 million, above average analyst estimate of $568.7 million.

(Reporting by Kshitiz Goliya and Supantha Mukherjee in Bengaluru; Editing by Anil D'Silva)

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First Published: Feb 10 2016 | 2:58 AM IST

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