Shares of Akamai Technologies (AKAM) were sinking over 16% during afternoon trading on Wednesday on heavy trading volume of around 11.9 million shares vs. the monthly average of about 2 million shares, after the Internet bandwidth and security provider offered weaker than expected current-quarter guidance
Akamai said that it expects second-quarter revenue of $603 million and adjusted earnings of 60 cents vs. consensus estimates of 65 cents and revenue of $623 million.
Despite the weak guidance, Akamai beat on the top and bottom line for its first quarter, and CEO Dr. Tom Leighton told Barron's today that the company "had a very good quarter."
He highlighted some positives, such as the company's security technology business which is now on course to make $450 million in annual revenue.
Leighton added that plenty of avenues to growth remain, including the "surging" growth in streaming video, which needs Akamai's services, along with the potential arrival of higher-bandwidth virtual reality and augmented reality applications.