Charges Offset Akamai's Sales

Revenue rises $30 million year over year at the Web services provider, but its charges mar profit.
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Akamai Technologies

(AKAM) - Get Report

on Wednesday sailed past revenue estimates for the first quarter and beat the consensus earnings forecast by a penny.

Revenue shot up to $90.8 million, up from $60.1 million year over year, and surpassed Thomson First Call expectations of $85.4 million.

Akamai's net income for the first quarter was $11.5 million, or 7 cents a share, dropping from the $14.1 million, or 10 cents a share, the company earned in the first quarter of 2005.

That includes a higher income tax charge than the year-ago quarter of $9.3 million, and $7.1 million, or 4 cents a share, in stock-compensation costs.

Excluding certain items, Akamai earned $29.4 million, or 17 cents a share, passing its 2005 first-quarter earnings of $14.3 million, or 10 cents a share. On that basis, the company topped consensus by a penny.

For the coming quarter, earnings consensus calls for 17 cents a share on sales of $88.7 million. The company did not immediately release guidance with its earnings results.

CEO Paul Sagan said in a statement that Akamai "benefited from strong demand for our core content delivery services as more and more enterprises continue to move critical business processes online, especially in the area of digital media and entertainment content."

The stock was the most heavily traded on Instinet after the market closed. Shares of Akamai recently rose 3.3%, or $1.09, to $34.43, then seesawed down 2.8%, or 94 cents, to $32.40.

During the regular session, Akamai slid 1.9%, or 66 cents, to close at $33.34.