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Akamai Reaffirms First Quarter 2013 Guidance In Conjunction With Annual Investor Summit



   Akamai Reaffirms First Quarter 2013 Guidance In Conjunction With Annual
                               Investor Summit

Company Announces New Cost Classifications and Non-GAAP Reporting Terminology
and Methodology

PR Newswire

CAMBRIDGE, Mass., March 11, 2013

CAMBRIDGE, Mass., March 11, 2013 /PRNewswire/ -- Akamai Technologies, Inc.
(NASDAQ: AKAM), the leading cloud platform for helping enterprises provide
secure, high-performing user experiences on any device, anywhere, is today
reaffirming its previously-issued first quarter 2013 financial guidance.  In
conjunction with its annual Investor Summit being held today, the Company is
also announcing the adoption of new reporting methodologies for classifying
certain costs in the statements of operations and for calculating normalized
net income, which will be referred to as non-GAAP net income going forward. 
These new reporting methodologies will be reflected beginning in the Company's
first quarter 2013 results, and have no impact on the Company's operational
performance, financial position or cash flows.

(Logo: http://photos.prnewswire.com/prnh/20100225/AKAMAILOGO )

First Quarter 2013 Guidance
The Company is announcing today that it continues to expect first quarter
revenue in the range of $352 million to $362 million, adjusted EBITDA margins
in the range of 42 to 43 percent and normalized net income per diluted share
in the range of $0.50 to $0.52.  Under the new methodology described below,
the Company expects non-GAAP net income per diluted share in the range of
$0.45 to $0.47.

New Reporting Methodologies
Starting in the first quarter 2013, the Company will classify both the cost of
services and support and the cost of network build-out and support as costs of
revenues in its statements of operations on a historic and prospective basis. 
The Company previously classified the cost of services and support in the
sales and marketing line of the statements of operations and the cost of
network build-out and support in the general and administrative line of the
statements of operations.  The effect of these reclassifications is to
increase cost of revenues and decrease operating expenses.  The changes do not
impact adjusted EBITDA, GAAP and non-GAAP net income or operational free cash
flow.

In addition, the Company previously calculated normalized net income by adding
the following items on a non-tax-effected basis to net income calculated in
accordance with GAAP:

  o Amortization of other acquired intangible assets;
  o Stock-based compensation expense, including amortization of capitalized
    internal-use software;
  o Restructuring charges and benefits;
  o Acquisition-related costs and benefits;
  o Certain gains and losses on investments;
  o Loss on early extinguishment of debt;
  o Gains and losses on legal settlements; and
  o Other non-recurring or unusual items that may arise from time to time.

Starting in the first quarter 2013, the Company will tax effect the items
listed above to calculate non-GAAP net income.  The Company believes this
revised methodology will help investors more easily and consistently evaluate
the Company's performance.

"Our goal is to align our reporting methodology with the evolution of our
business," said Tom Leighton, CEO of Akamai.  "As we look to the next phase of
Akamai's growth, it is important that we help investors better understand the
dynamics of our core and emerging businesses.  These additional disclosures
will provide increased granularity to enable measurement of Akamai's growth
over the long term."

The following table provides an overview of the Company's first quarter 2013
guidance before and after these new reporting methodologies.  Additional
materials, including historical pro forma schedules for full-year 2010, 2011
and 2012 and quarterly for 2011 and 2012 are available on the Company's
Investor Relations website.  These schedules represent comparisons of non-GAAP
financial measures with the most comparable GAAP financial measures for the
related period.

 First Quarter 2013 Guidance 
 ($ amounts in millions, expect per share data) 
                                Guidance as of                 Guidance as of
                                 Feb. 6, 2013   Adjustments     Mar. 11, 2013 
Revenue Range                     $352 - $362  -                 $352 - $362 
Cash Gross Margin               82%            (7%)            75%
GAAP Gross Margin               73%            (7%)            66%
Cash Operating Expenses         $141            ($25) or 7% of $116
                                               Revenue 
Adjusted EBITDA Margin           42% - 43%     -                42% - 43%
CapEx                            $60 - $65     -                $60 - $65 
Normalized EPS                    $0.50 -      -                 $0.50 -
                                $0.52                          $0.52  
Income Tax-Effect of Non-GAAP   -              ($0.05)         ($0.05)
Adjustments
Non-GAAP EPS                    -              -                 $0.45 -
                                                               $0.47 
GAAP taxes and diluted sharecount guidance remains unchanged

About Akamai
Akamai^® is the leading cloud platform for helping enterprises provide secure,
high-performing user experiences on any device, anywhere.  At the core of the
Company's solutions is the Akamai Intelligent Platform™ 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.

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). We believe that making available non-GAAP financial measures may
be helpful to investors as they examine our past performance and future
prospects, especially when comparing such results to previous periods. Our
management uses non-GAAP financial measures, in addition to GAAP financial
measures, as the basis for measuring our core operating performance and
comparing such performance to that of prior periods. Some of these financial
measures are also used by management in its financial and operational
decision-making. There are limitations associated with reliance on these
non-GAAP financial metrics because they are specific to our operations and
financial performance, which may  make comparisons with other companies'
financial results more challenging. These non-GAAP financial measures should
only be used as a supplement to results presented in accordance with GAAP.

Akamai defines the following non-GAAP financial measures as shown below:

Normalized net income – GAAP net income adjusted for the following non-tax
effected items:  amortization of other acquired intangible assets; stock-based
compensation expense; stock-based compensation reflected as a component of
amortization of capitalized internal-use software; restructuring charges and
benefits; acquisition-related costs and benefits; certain gains and losses on
investments; loss on early extinguishment of debt; gains and losses on legal
settlements and other non-recurring or unusual items that may arise from time
to time.

Non-GAAP net income – GAAP net income adjusted for the following tax-effected
items:  amortization of other acquired intangible assets; stock-based
compensation expense; stock-based compensation reflected as a component of
amortization of capitalized internal-use software; restructuring charges and
benefits; acquisition-related costs and benefits; certain gains and losses on
investments; loss on early extinguishment of debt; gains and losses on legal
settlements and other non-recurring or unusual items that may arise from time
to time.

Normalized net income per share – Normalized net income, plus interest
add-back for diluted share calculation, divided by the basic weighted average
or diluted common shares outstanding used in GAAP net income per share
calculations.

Non-GAAP net income per share – Non-GAAP net income, plus interest add-back
for diluted share calculation, divided by the basic weighted average or
diluted common shares outstanding used in GAAP net income per share
calculations.

Adjusted EBITDA – GAAP net income before interest, income taxes, depreciation
and amortization of tangible and intangible assets, stock-based compensation
expense, amortization of capitalized stock-based compensation, restructuring
charges and benefits, acquisition related costs and benefits, certain gains
and losses on investments, foreign exchange gains and losses, loss on early
extinguishment of debt, 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 as a percentage of revenues.

Cash gross margin – Revenues less GAAP cost of revenues, excluding stock-based
compensation and depreciation and amortization, as a percentage of revenues.

Cash operating expenses – GAAP operating expenses (consisting of Research and
Development, Sales and Marketing, General and Administrative expenses,
Amortization of other intangible assets and Restructuring charge (benefit)),
excluding stock-based compensation, amortization of other intangible assets,
depreciation and amortization, restructuring charges and benefits and
acquisition related costs and benefits.

Capital expenditures (CapEx) – Purchases of property and equipment,
capitalization of internal-use software development costs and capitalization
of stock-based compensation.

Operational free cash flow, or free cash flow – Adjusted EBITDA less capital
expenditures, or CapEx, excluding stock-based compensation.

Non-GAAP Tax Rate – GAAP Tax rate excluding the tax effect of non-GAAP
adjustments and certain discrete income tax items.

Akamai is unable to provide a reconciliation on a forward-looking basis of the
foregoing non-GAAP financial measures to corresponding metrics calculated in
accordance with GAAP because the Company does not have and is currently unable
to estimate the following items that are excluded from the calculations of
such non-GAAP metrics: amortization of other intangible assets; stock-based
compensation expense; amortization of capitalized stock-based compensation;
acquisition related costs (benefits); restructuring (benefits) charges; and
capital expenditures.

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 guidance  for the
first quarter of 2013. 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 for the year ended December 31, 2012.

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               Natalie Temple
Media Relations          Investor Relations
617-444-3913      --or-- 617-444-3635
jyoung@akamai.com
                         ntemple@akamai.com

SOURCE Akamai Technologies, Inc.

Website: http://www.akamai.com
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