NEW YORK (
delivered a slightly better than expected quarterly performance late Thursday, sending its stock higher in after-hours action.
The Cambridge, Mass.-based Web content delivery technology company posted a normalized profit of $63.4 million, or 34 cents a share, for the three months ended Sept. 30 on revenue of $281.9 million, up 10% from last year and 2% on a sequential basis.
The average estimate of analysts polled by
was for earnings of 33 cents a share in the fiscal third quarter on revenue of $278.9 million.
"We are pleased with Akamai's performance in the third quarter, as more customers adopted the Akamai Platform for their online businesses," said Paul Sagan, president and CEO of Akamai. "We have continued to develop the platform of choice for businesses seeking to capitalize on opportunities in mobile, cloud, security, and video, as well as manage the risks of the hyperconnected world."
The stock was last quoted at $26.60, up 12%, on after-hours volume of more than 700,000, according to
Akamai also announced that David Kenny had resigned as a president and director of the company. Sagan was named to the additional post of president.
Wall Street was skeptical of Akamai ahead of the report with 12 of the 21 analysts covering the stock at either hold (11) or sell (1). Based on Wednesday's regular session close at $23.78, the shares were down roughly 50% so far in 2011, falling sharply as top-line growth has stalled.
Written by Michael Baron in New York.
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