AKAMAI TECHNOLOGIES, INC. CAMBRIDGE, Mass., Oct. 29, 2014 /PRNewswire/ --
-- Third quarter revenue of $498 million, up 26% year-over-year
-- Third quarter GAAP net income of $91 million, or $0.50 per diluted
share, up 14% year-over-year
-- Third quarter non-GAAP net income* of $111 million, up 23%
year-over-year, or $0.62 per diluted share, up 24% year-over-year
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud services for delivering, optimizing and securing online content and business applications, today reported financial results for the third quarter ended September 30, 2014. Revenue for the third quarter of 2014 was $498 million, a 26% increase over third quarter 2013 revenue of $396 million.
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"Akamai delivered very strong third quarter financial results across every product and geography, with Media driving the top and bottom line performance above our guidance range," said Dr. Tom Leighton, Chief Executive Officer. "We continued to invest across our business to develop unique, innovative solutions designed to help our customers drive business online in an increasingly complex, hyper-connected world."
GAAP net income for the third quarter of 2014 was $91 million, or $0.50 per diluted share, an increase from the prior quarter's GAAP net income of $73 million, and a 14% increase over third quarter 2013 GAAP net income of $80 million, or $0.44 per diluted share.
Non-GAAP net income* for the third quarter of 2014 was $111 million, or $0.62 per diluted share, an increase from the prior quarter's non-GAAP net income of $106 million, and a 23% increase over third quarter 2013 non-GAAP net income of $90 million, or $0.50 per diluted share.
Adjusted EBITDA* for the third quarter of 2014 was $213 million, an increase from the prior quarter's Adjusted EBITDA of $204 million, and up from $173 million in the third quarter of 2013. Adjusted EBITDA margin* for the third quarter of 2014 was 43%, consistent with the prior quarter and down a point from the same period last year.
GAAP income from operations for the third quarter of 2014 was $120 million, an increase from the prior quarter's GAAP income from operations of $112 million, and up from $100 million in the third quarter of 2013. GAAP operating margin for the third quarter of 2014 was 24%, consistent with the prior quarter and down one percentage point from the same period last year.
Non-GAAP income from operations* for the third quarter of 2014 was $158 million, an increase from the prior quarter's non-GAAP income from operations of $156 million, and up from $132 million in the third quarter of 2013. Non-GAAP operating margin* for the third quarter of 2014 was 32%, down one percentage point from the prior quarter and the same period last year.
Cash from operations for the third quarter of 2014 was $173 million, or 35% of revenue. The Company had $1.6 billion of cash, cash equivalents and marketable securities as of September 30, 2014.
During the third quarter of 2014, under the share repurchase program authorized by the Board of Directors in October 2013, the Company spent approximately $39 million to repurchase 0.6 million shares of its common stock, at an average price of $60.12 per share. The Company had approximately 178 million shares of common stock outstanding as of September 30, 2014.
*See Use of Non-GAAP Financial Measures below for definitions.
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-866-318-8617 (or 1-617-399-5136 for international calls) and using passcode No. 21832022. A live Webcast of the call may be accessed at www.akamai.com in the Investor section. In addition, a replay of the call will be available for one week following the conference through the Akamai Website or by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using passcode No. 18079767.
About Akamai
Akamai(®) is the leading provider of cloud services for delivering, optimizing and securing online content and business applications. At the core of the Company's solutions is the Akamai Intelligent Platform(TM) providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. Akamai removes the complexities of connecting the increasingly mobile world, supporting 24/7 consumer demand, and enabling enterprises to securely leverage the cloud. To learn more about how Akamai is accelerating the pace of innovation in a hyperconnected world, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter.
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) September 30, December 31,
2014 2013
---- ----
ASSETS
Cash and cash
equivalents $214,339 $333,891
Marketable
securities 496,573 340,005
Accounts
receivable,
net 326,747 271,988
Prepaid
expenses and
other current
assets 90,173 62,096
Deferred income
tax assets 24,844 21,734
------ ------
Current assets 1,152,676 1,029,714
Property and
equipment, net 559,194 450,287
Marketable
securities 850,847 573,026
Goodwill and
acquired
intangible
assets, net 1,189,862 834,797
Deferred income
tax assets 2,530 2,325
Other assets 99,182 67,536
------ ------
Total assets $3,854,291 $2,957,685
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts
payable and
accrued
expenses $248,786 $224,095
Other current
liabilities 52,815 39,071
Current
liabilities 301,601 263,166
Convertible
senior notes 600,098 -
Other
liabilities 104,212 65,088
Total
liabilities 1,005,911 328,254
Stockholders'
equity 2,848,380 2,629,431
Total
liabilities
and
stockholders'
equity $3,854,291 $2,957,685
========== ==========
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
------------------ -----------------
(in thousands, except September June 30, September September September
per share data) 30, 2014 2014 30, 2013 30, 2014 30, 2013
-------- ---- -------- -------- --------
Revenue $498,042 $476,035 $395,790 $1,427,579 $1,141,942
Costs and operating expenses:
Cost of revenue (1) (2) 158,812 149,318 132,039 447,742 377,136
Research and development (1) 32,583 32,052 24,857 92,869 67,359
Sales and marketing (1) 96,215 91,462 67,811 268,742 198,326
General and administrative (1) (2) 81,905 81,880 66,634 239,946 183,365
Amortization of acquired intangible
assets 8,403 8,403 4,859 23,654 16,653
Restructuring (benefits) charges (115) 569 69 1,189 891
---- --- --- ----- ---
Total costs and operating expenses 377,803 363,684 296,269 1,074,142 843,730
------- ------- ------- --------- -------
Income from operations 120,239 112,351 99,521 353,437 298,212
Interest income 2,010 1,740 1,458 5,389 4,543
Interest expense (4,482) (4,516) - (10,939) -
Other expense, net (188) (899) (305) (1,968) (96)
---- ---- ---- ------ ---
Income before provision for income
taxes 117,579 108,676 100,674 345,919 302,659
Provision for income taxes 26,424 35,790 20,918 109,078 89,521
------ ------ ------ ------- ------
Net income $91,155 $72,886 $79,756 $236,841 $213,138
======= ======= ======= ======== ========
Net income per share:
Basic $0.51 $0.41 $0.45 $1.33 $1.20
Diluted $0.50 $0.40 $0.44 $1.31 $1.17
Shares used in per share calculations:
Basic 178,186 178,081 178,235 178,324 178,008
Diluted 180,955 180,841 181,922 181,278 181,623
(1) Includes stock-based compensation (see supplemental table for figures)
(2) Includes depreciation and amortization (see supplemental table for figures)
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Nine Months Ended
------------------ -----------------
(in thousands) September June 30, September September September
30, 2014 2014 30, 2013 30, 2014 30, 2013
-------- ---- -------- -------- --------
Cash flows from operating activities:
Net income $91,155 $72,886 $79,756 $236,841 $213,138
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 67,415 58,712 47,954 179,643 134,455
Stock-based compensation 28,008 31,678 24,479 84,800 72,211
Provision (benefit) for doubtful
accounts 1,053 377 (310) 1,517 889
Excess tax benefits from stock-
based compensation (4,297) (4,483) (8,530) (23,958) (18,152)
(Benefit) provision for deferred
income taxes (11,218) 20,180 - 10,622 -
Amortization of debt discount and
issuance costs 4,482 4,516 - 10,939 -
Loss (gain) on disposal of
property and equipment 287 (177) (324) 325 (15)
(Gain) and other activity related
to divestiture of a business - - 1,093 - (1,188)
Loss on investments - 393 - 393 -
Change in fair value of contingent
consideration - 300 - 300 -
Changes in operating assets and liabilities,
net of effects of acquisitions and
divestitures:
Accounts receivable (8,959) (23,117) (16,118) (50,213) (51,321)
Prepaid expenses and other current
assets (9,348) 7,963 6,941 (22,346) (9,266)
Accounts payable and accrued
expenses 15,417 43,970 20,035 36,876 43,730
Deferred revenue 2,938 (409) 4,379 7,688 10,991
Other current liabilities (2,122) 132 255 (703) 32
Other non-current assets and
liabilities (1,529) (12,697) (1,722) (10,195) (3,328)
------ ------- ------ ------- ------
Net cash provided by operating
activities 173,282 200,224 157,888 462,529 392,176
------- ------- ------- ------- -------
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
Three Months Ended Nine Months Ended
------------------ -----------------
(in thousands) September June 30, September September September
30, 2014 2014 30, 2013 30, 2014 30, 2013
-------- ---- -------- -------- --------
Cash flows from investing activities:
Cash received (paid) for acquired
businesses, net of cash acquired - 115 (27,500) (386,532) (27,420)
Purchases of property and
equipment and capitalization of
internal-use software
development costs (71,782) (70,519) (60,388) (226,307) (197,738)
Purchases of short- and long-
term marketable securities (204,607) (204,648) (93,681) (1,068,198) (403,556)
Proceeds from sales and maturities
of short- and long-term
marketable securities 93,300 138,152 57,509 631,422 344,702
Proceeds from the sale of property
and equipment 218 418 335 802 761
Other non-current assets and
liabilities 4,976 2,442 (2,959) 6,420 (3,320)
----- ----- ------ ----- ------
Net cash used in investing
activities (177,895) (134,040) (126,684) (1,042,393) (286,571)
-------- -------- -------- ---------- --------
Cash flows from financing activities:
Proceeds from the issuance of
convertible senior notes, net of
issuance costs - (868) - 678,735 -
Proceeds from the issuance of
warrants related to convertible
senior notes - - - 77,970 -
Purchase of note hedge related to
convertible senior notes - - - (101,292) -
Repayment of acquired debt and
capital leases - - - (17,862) -
Payment of contingent
consideration related to acquired
business (1,575) - - (1,575) -
Proceeds from the issuance of
common stock under stock plans 17,362 13,670 26,157 75,361 54,418
Excess tax benefits from stock-
based compensation 4,297 4,483 8,530 23,958 18,152
Employee taxes paid related to net
share settlement of stock-based
awards (8,957) (7,977) (7,434) (43,205) (28,559)
Repurchases of common stock (39,022) (71,344) (29,626) (226,513) (112,408)
------- ------- ------- -------- --------
Net cash (used in) provided by
financing activities (27,895) (62,036) (2,373) 465,577 (68,397)
------- ------- ------ ------- -------
Effects of exchange rate changes
on cash and cash equivalents (7,318) 1,291 1,319 (5,265) (4,182)
Net (decrease) increase in cash
and cash equivalents (39,826) 5,439 30,150 (119,552) 33,026
Cash and cash equivalents at
beginning of period 254,165 248,726 204,865 333,891 201,989
------- ------- ------- ------- -------
Cash and cash equivalents at end
of period $214,339 $254,165 $235,015 $214,339 $235,015
======== ======== ======== ======== ========
AKAMAI TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND ADJUSTED EBITDA
Three Months Ended Nine Months Ended
------------------ -----------------
(in thousands, except September June 30, September September September
per share data) 30, 2014 2014 30, 2013 30, 2014 30, 2013
-------- ---- -------- -------- --------
Income from operations $120,239 $112,351 $99,521 $353,437 $298,212
Amortization of acquired intangible
assets 8,403 8,403 4,859 23,654 16,653
Stock-based compensation 28,008 31,678 24,479 84,800 72,211
Amortization of capitalized stock-
based compensation 3,556 2,016 2,224 7,500 6,103
Amortization of capitalized
interest expense 45 18 - 63 -
Acquisition-related costs 270 792 219 4,454 587
Restructuring (benefits) charges (115) 569 69 1,189 891
Benefit from adoption of software
development activities (2,670) - - (2,670) -
Gain and other activity related to
divestiture of a business - - 1,093 - (1,188)
--- --- ----- --- ------
Operating adjustments 37,497 43,476 32,943 118,990 95,257
Non-GAAP income from operations $157,736 $155,827 $132,464 $472,427 $393,469
======== ======== ======== ======== ========
Non-GAAP operating margin 32% 33% 33% 33% 34%
Net income $91,155 $72,886 $79,756 $236,841 $213,138
Operating adjustments (from above) 37,497 43,476 32,943 118,990 95,257
Amortization of debt discount and
issuance costs 4,482 4,516 - 10,939 -
Loss on investments - 393 - 393 -
Income tax-effect of above non-
GAAP adjustments and certain
discrete tax items (21,771) (15,721) (22,439) (45,333) (40,891)
------- ------- ------- ------- -------
Non-GAAP net income 111,363 105,550 90,260 321,830 267,504
Depreciation and amortization 55,411 48,275 40,871 148,426 111,699
Interest income (2,010) (1,740) (1,458) (5,389) (4,543)
Other expense 188 506 305 1,575 96
Provision for GAAP income taxes 26,424 35,790 20,918 109,078 89,521
Income tax-effect of above non-
GAAP adjustments and certain
discrete tax items 21,771 15,721 22,439 45,333 40,891
Adjusted EBITDA $213,147 $204,102 $173,335 $620,853 $505,168
======== ======== ======== ======== ========
Adjusted EBITDA margin 43% 43% 44% 43% 44%
Non-GAAP net income per share:
Basic $0.62 $0.59 $0.51 $1.80 $1.50
Diluted $0.62 $0.58 $0.50 $1.78 $1.47
Shares used in non-GAAP per share calculations:
Basic 178,186 178,081 178,235 178,324 178,008
Diluted 180,955 180,841 181,922 181,278 181,623
AKAMAI TECHNOLOGIES, INC.
SUPPLEMENTAL FINANCIAL DATA
Three Months Ended Nine Months Ended
------------------ -----------------
(in thousands, except September June 30, September September September
end of period statistics) 30, 2014 2014 30, 2013 30, 2014 30, 2013
-------- ---- -------- -------- --------
Revenue by solution category:
Media Delivery Solutions $230,576 $216,174 $189,066 $661,583 $549,672
Performance and Security Solutions 224,169 217,415 173,864 639,561 498,387
Service and Support Solutions 43,297 42,446 32,860 126,435 91,754
Advertising Decision Solutions and
Other - - - - 2,129
Total revenue $498,042 $476,035 $395,790 $1,427,579 $1,141,942
======== ======== ======== ========== ==========
Stock-based compensation:
Cost of revenue $3,030 $3,076 $2,885 $8,901 $8,230
Research and development 4,979 5,061 4,583 14,517 12,819
Sales and marketing 12,110 12,796 10,048 35,438 29,278
General and administrative 7,889 10,745 6,963 25,944 21,884
Total stock-based compensation $28,008 $31,678 $24,479 $84,800 $72,211
======= ======= ======= ======= =======
Depreciation and amortization:
Network-related depreciation $44,617 $38,496 $33,909 $119,778 $93,128
Other depreciation and amortization 10,794 9,779 6,962 28,648 18,571
------ ----- ----- ------ ------
Depreciation of property and equipment 55,411 48,275 40,871 148,426 111,699
Capitalized stock-based compensation
amortization 3,556 2,016 2,224 7,500 6,103
Capitalized interest expense
amortization 45 18 - 63 -
Amortization of acquired intangible
assets 8,403 8,403 4,859 23,654 16,653
----- ----- ----- ------ ------
Total depreciation and amortization $67,415 $58,712 $47,954 $179,643 $134,455
======= ======= ======= ======== ========
Capital expenditures:
Purchases of property and equipment $47,034 $50,963 $42,058 $157,280 $142,258
Capitalized internal-use software
development costs 31,466 28,265 20,044 84,432 55,171
Capitalized stock-based compensation 3,850 3,943 3,069 11,577 9,252
Capitalized interest expense 679 597 - 1,513 -
Total capital expenditures* $83,029 $83,768 $65,171 $254,802 $206,681
======= ======= ======= ======== ========
Net increase in cash, cash equivalents
and marketable securities $69,357 $73,001 $68,107 $314,837 $91,279
End of period statistics:
Number of employees 4,858 4,588 3,769
Number of deployed servers 161,273 154,079 141,353
* See Use of Non-GAAP Financial Measures below for a definition
Use of Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate Akamai's financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, Adjusted EBITDA, Adjusted EBITDA margin and capital expenditures, as discussed below.
Management believes that these non-GAAP financial measures reflect Akamai's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in its business, as they exclude expenses and gains that may be infrequent, unusual in nature and not reflective of Akamai's ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating Akamai's operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.
The non-GAAP financial measures do not replace the presentation of Akamai's GAAP financial results and should only be used as a supplement to, not as a substitute for, Akamai's financial results presented in accordance with GAAP. Akamai has provided a reconciliation of each non-GAAP financial measure used in its financial reporting to the most directly comparable GAAP financial measure. This reconciliation captioned "Reconciliation of GAAP to Non-GAAP Financial Measures" can be found on the Investor Relations section of Akamai's website.
The non-GAAP adjustments, and Akamai's basis for excluding them from non-GAAP financial measures, are outlined below:
-- Amortization of acquired intangible assets - Akamai has incurred
amortization of intangible assets, included in its GAAP financial
statements, related to various acquisitions Akamai has made. The amount
of an acquisition's purchase price allocated to intangible assets and
term of its related amortization can vary significantly and are unique
to each acquisition; therefore, Akamai excludes amortization of acquired
intangible assets to provide investors with a consistent basis for
comparing pre- and post-acquisition operating results.
-- Stock-based compensation and amortization of capitalized stock-based
compensation - Although stock-based compensation is an important aspect
of the compensation paid to Akamai's employees and executives, the
expense varies with changes in the stock price and market conditions at
the time of grant, varying valuation methodologies, subjective
assumptions and the variety of award types. This makes the comparison
of Akamai's current financial results to previous and future periods
difficult to interpret; therefore, Akamai believes it is useful to
exclude stock-based compensation and amortization of capitalized
stock-based compensation in order to better understand the performance
of Akamai's core business performance and to be consistent with the way
investors evaluate its performance and comparison of its operating
results to peer companies.
-- Acquisition-related costs - Acquisition-related costs include
transaction fees, due diligence costs and other one-time direct costs
associated with strategic activities. In addition, subsequent
adjustments to Akamai's initial estimated amount of contingent
consideration associated with specific acquisitions are included within
acquisition-related costs. These amounts are impacted by the timing and
size of the acquisitions. Akamai excludes acquisition-related costs from
non-GAAP financial measures to provide a useful comparison of Akamai's
operating results to prior periods and to its peer companies because
such amounts vary significantly based on the magnitude of its
acquisition transactions.
-- Restructuring (benefits) charges - Akamai has incurred restructuring
(benefits) charges that are included in its GAAP financial statements,
primarily related to workforce reductions and estimated costs of exiting
facility lease commitments. Akamai excludes these items from non-GAAP
financial measures when evaluating its continuing business performance
as such items are not consistently recurring and do not reflect expected
future operating expense, nor provide meaningful insight into the
fundamentals of current or past operations of its business.
-- Benefit from adoption of software development activities - Akamai
recognized a benefit to non-income-related tax expense associated with
the adoption of software development activities. Akamai excluded this
item from its non-GAAP financial measures because transactions of this
nature occur infrequently and are not considered part of Akamai's core
business operations.
-- Gains and other activity related to divestiture of a business - Akamai
recognized a gain and other activity related to the divestiture of its
Advertising Decision Solutions business. Akamai excludes gains and other
activity related to divestiture of a business from non-GAAP financial
measures because transactions of this nature occur infrequently and are
not considered part of Akamai's core business operations.
-- Amortization of debt discount and issuance costs and amortization of
capitalized interest expense - Akamai issued $690 million of convertible
senior notes due 2019 with a coupon interest rate of 0%. The imputed
interest rate of the convertible senior notes was approximately 3.2%.
This is a result of the debt discount recorded for the conversion
feature that is required to be separately accounted for as equity,
thereby reducing the carrying value of the convertible debt instrument.
The debt discount is amortized as interest expense together with the
issuance costs of the debt which are recorded as an asset in the
consolidated balance sheet. All of Akamai's interest expense is
comprised of these non-cash components and is excluded from management's
assessment of the company's operating performance because management
believes the non-cash expense is not indicative of ongoing operating
performance.
-- Loss on investments - Akamai has incurred losses from the impairment of
certain investments. Akamai believes excluding these amounts from
non-GAAP financial measures is useful to investors as they occur
infrequently, are not representative of Akamai's core business
operations or meaningful in evaluating Akamai's business results.
-- Income tax-effect of non-GAAP adjustments and certain discrete tax items
- The non-GAAP adjustments described above are reported on a pre-tax
basis. The income tax effect of non-GAAP adjustments is the difference
between GAAP and non-GAAP income tax expense. Non-GAAP income tax
expense is computed on non-GAAP pre-tax income (GAAP pre-tax income
adjusted for non-GAAP adjustments) and excludes certain discrete tax
items (such as recording or release of valuation allowances), if any.
Akamai believes that applying the non-GAAP adjustments and their related
income tax effect allows Akamai to more properly reflect the income
attributable to its core operations.
Akamai's definitions of its non-GAAP financial measures are outlined below:
Non-GAAP income from operations - GAAP income from operations adjusted for the following items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; amortization of capitalized interest expense; restructuring (benefits) charges; acquisition-related costs; benefit from adoption of software development activities; gains and other activity related to divestiture of a business; gains and losses on legal settlements and other non-recurring or unusual items that may arise from time to time.
Non-GAAP operating margin - Non-GAAP income from operations stated as a percentage of revenue.
Non-GAAP net income - GAAP net income adjusted for the following tax-effected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; restructuring (benefits) charges; acquisition-related costs; certain gains and losses on investments; benefit from adoption of software development activities; gains and other activity related to divestiture of a business; loss on early extinguishment of debt; amortization of debt discount and issuance costs; amortization of capitalized interest expense; gains and losses on legal settlements and other non-recurring or unusual items that may arise from time to time.
Non-GAAP net income per share - Non-GAAP net income divided by basic weighted average or diluted common shares outstanding. Basic weighted average shares outstanding are those used in GAAP net income per share calculations. Diluted weighted average shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transaction entered into in connection with the issuance of $690 million of convertible senior notes due 2019. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully diluted share calculation until they are delivered. However, the company would receive a benefit from the note hedge transaction and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of net income per share. Until Akamai's weighted average stock price is greater than $89.56, the initial conversion price, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.
Adjusted EBITDA - GAAP net income excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; restructuring (benefits) charges; acquisition-related costs; certain gains and losses on investments; benefit from adoption of software development activities; gains and other activity related to divestiture of a business; foreign exchange gains and losses; loss on early extinguishment of debt; amortization of debt discount and issuance costs; amortization of capitalized interest expense; gains and losses on legal settlements and other non-recurring or unusual items that may arise from time to time.
Adjusted EBITDA margin - Adjusted EBITDA stated as a percentage of revenue.
Capital expenditures - Purchases of property and equipment, capitalization of internal-use software development costs, capitalization of stock-based compensation and capitalization of interest expense.
Akamai Statement Under the Private Securities Litigation Reform Act
This release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements about future business plans and opportunities. 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, effects of increased competition including potential failure to maintain the prices we charge for our services and loss of significant customers; failure of the markets we address or plan to address to develop as we expect or at all; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; a failure of Akamai's services or network infrastructure; delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.
In addition, the statements in this press release represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release.
Contacts:
Jeff Young Tom Barth
Media Relations Investor Relations
Akamai Technologies Akamai Technologies
617-444-3913 617-274-7130
jyoung@akamai.com tbarth@akamai.com
Logo - http://photos.prnewswire.com/prnh/20100225/AKAMAILOGO
SOURCE Akamai Technologies, Inc.
