Akamai Technologies (AKAM) has reported an 8.11 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $80.93 million, or $0.46 a share in the quarter, compared with $74.86 million, or $0.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $120.32 million, or $0.69 a share compared with $117.78 million or $0.66 a share, a year ago.
Revenue during the quarter grew 7.31 percent to $609.24 million from $567.72 million in the previous year period. Gross margin for the quarter expanded 54 basis points over the previous year period to 66.24 percent. Total expenses were 81.09 percent of quarterly revenues, up from 79.90 percent for the same period last year. That has resulted in a contraction of 119 basis points in operating margin to 18.91 percent.
Operating income for the quarter was $115.23 million, compared with $114.12 million in the previous year period.
However, the adjusted operating income for the quarter stood at $165.49 million compared to $163.71 million in the prior year period. At the same time, adjusted operating margin contracted 167 basis points in the quarter to 27.16 percent from 28.84 percent in the last year period.
"Q1 was a very solid quarter for Akamai on both the top and bottom lines," said Dr. Tom Leighton, chief executive officer. "We are especially pleased with the strong results of our performance and security solutions, which grew 17% year-over-year, or 18% in constant currency*, and now account for over 60% of our overall revenue. As we look forward, I remain excited about the opportunities that lie ahead, as Akamai is uniquely positioned to help our customers provide the highest quality and most secure digital experiences on the Internet."
Operating cash flow drops significantly
Akamai Technologies has generated cash of $142.62 million from operating activities during the quarter, down 25.48 percent or $ 48.75 million, when compared with the last year period.
Cash flow from investing activities was $139.41 million for the quarter as against cash outgo of $55.43 million in the last year period.
The company has spent $88.86 million cash to carry out financing activities during the quarter as against cash outgo of $116.87 million in the last year period.
Cash and cash equivalents stood at $522.32 million as on Mar. 31, 2017, up 66.92 percent or $209.41 million from $312.91 million on Mar. 31, 2016.
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