akamai technologies inc (AKAM) Key Developments
Akamai Technologies, Inc. Announces Strategic Partnership Agreement with China Unicom Corporation Limited's CU Cloud
May 27 15
Akamai Technologies, Inc. announced a strategic partnership agreement with China Unicom Corporation Limited's cloud division – CU Cloud. As part of the strategic partnership, CU Cloud has agreed to complement its own Cloud services for global businesses with Akamai's full suite of media delivery, web performance, and cloud security offerings. The partnership is designed to enable close cooperation between the two companies in the areas of technology and network access, thus strengthening Akamai's China CDN offering for accelerating content from global customers to Chinese consumers. In addition, both parties will continue to develop the opportunity to provide the best service to Chinese enterprises to grow their web presence globally. Under the partnership, CU Cloud plans to leverage Akamai for CDN technology that will be available for the delivery of its Cloud services. Akamai enables operators to deploy a highly scalable, completely turnkey CDN that leverages the same technologies found within the Akamai Intelligent Platform.
Akamai Technologies Opens Security Operations Centres in Bangalore, Tokyo
May 22 15
Akamai Technologies announced the opening of new security operations centres (SOCs) in Bangalore, India, and Tokyo, Japan. The new facility in Bangalore, which began operations in December 2014, adds significant bandwidth capacity and expertise to Akamai's cyber defense network. By year end, Bangalore will be the second larger Akamai SOC in terms of human resources outside of the US. The newly opened SOC in Japan will provide managed security services to customers with support in Japanese local language and increase capabilities of fast response to Japanese clients to counter the increasing size and complexity of DDoS and web application attacks.
Akamai Technologies, Inc. Unveils Akamai Cloud Security Intelligence
May 1 15
Akamai Technologies, Inc. has unveiled the Akamai Cloud Security Intelligence. Akamai Cloud Security Intelligence, a data processing engine within the Akamai Intelligent Platform, is used to continuously analyze more than two Petabytes of data related to web security threats. Akamai uses the resulting intelligence to not only continuously update and improve the Kona Site Defender application security rule set, but also provides the framework around which innovative offerings, such as the newly available Kona Client Reputation solution are built. In an increasingly hostile and complex online environment, protecting web properties from potentially harmful activities can be daunting. For security professionals, understanding the 'true intent' of web clients, as well as how to counter the ever-changing nature of attack vectors, is crucial to protecting their organizations' websites and applications. Through the ability to analyze more than 20 Terabytes of daily web attack traffic associated with hundreds of millions of unique IP addresses on an hourly basis, the Akamai Cloud Security Intelligence is designed to provide more comprehensive insight into how malicious actors are attacking web properties, which in turn can be used to inform the direction of Akamai's Cloud Security Solutions. Security professionals can benefit from the power of Akamai's Cloud Security Intelligence through two newly introduced offerings: Kona Client Reputation and Improved Kona Rule Set. Akamai's unprecedented view of web traffic gives the Company access to more web client data than any other security provider. That data, combined with a proprietary query language and advanced heuristics and algorithms creates a reputation 'score' for every IP address that crosses the platform. As important, this score can adapt over time, based on ongoing data analysis of IP address activity. Potentially hazardous traffic is classified as DDoS attackers, vulnerability scanners, web attackers or web scrapers and further rated according to the likelihood of danger associated with the client. The rating system is specifically designed to give security professionals greater insight and flexibility in defining which clients to block and which to let through. Further, by injecting scores into request headers, Kona Client Reputation data can feed into back-end security systems. Internal testing of Kona Client Reputation shows the solution is able to stop an average of up to eight times as many malicious requests than using Kona Site Defender alone. Kona Client Reputation is deployed as an add on option to Akamai Kona Site Defender.
ARRISGroup, Inc. and Akamai Technologies Partner to Advance IP Video Delivery
Apr 29 15
ARRISGroup, Inc. announced that it will offer Akamai Technologies' Aura Licensed Content Delivery Network (LCDN) as part of its end-to-end IP video portfolio. ARRIS will integrate Akamai's LCDN and Aura Object Store into its leading IP video solutions—such as the ARRIS M3 Media Server, Spectrum CPC, and nDVR—to give operators a variety of choices for streamlining, managing, and scaling digital content delivery. It will also support operators as they adopt multiscreen and mobile delivery platforms. These trends and more are compelling operators to meet consumer demand through scalable, cloud-based delivery platforms—like ARRIS's nDVR. By combining these IP solutions with Akamai's LCDN, ARRIS is empowering operators to deliver content that's as each end consumer and to scale that experience to millions of households.
Akamai Technologies, Inc. Announces Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Provides Financial Guidance for the Second Quarter and Full Year of 2015
Apr 28 15
Akamai Technologies, Inc. announced consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported revenue of $526,536,000 compared to $453,502,000 a year ago. Income from operations was $121,521,000 compared to $120,847,000 a year ago. Income before provision for income taxes was $119,645,000 compared to $119,664,000 a year ago. Net income was $77,746,000 or $0.43 per diluted share compared to $72,800,000 or $0.40 per diluted share a year ago. Net cash provided by operating activities was $99,729,000 compared to $89,023,000 a year ago. Purchases of property and equipment and capitalization of internal-use software development costs were $137,069,000 compared to $84,006,000 a year ago. Non-GAAP income from operations was $162,787,000 compared to $158,864,000 a year ago. Non-GAAP net income was $111,176,000 or $0.61 per diluted share compared to $104,917,000 or $0.58 per diluted share a year ago. Adjusted EBITDA was $223,359,000 compared to $203,604,000 a year ago. Total capital expenditures were $127,931,000 compared to $88,005,000 a year ago. Taxes included in non-GAAP earnings were $54 million, based on an effective tax rate of 33%.
At current spot rates, foreign exchange fluctuations are expected to have a negative impact on second quarter revenue of $3 million compared to first quarter and $22 million compared to second quarter of last year. As the company guide for second quarter, the company is expecting another strong top line quarter with second quarter revenues in the range of $532 million to $547 million. This range represents 17% to 20% year-over-year growth adjusted for foreign exchange movements over a very strong second quarter last year, which included notable high-profile live events, like the World Cup matches. At the high end of this guidance range, this growth rate is consistent with first growth rate, even with the full quarter wrapped-around effect of the Prolexic acquisition. At these revenue levels, the company expects cash gross margins of 77% to 78% and GAAP gross margins of approximately 67%. The company anticipates second quarter EBITDA margins of 40% to 41%. Looking beyond second quarter, the company expects to operate the company in the 40% to 41% EBITDA range for the foreseeable future. However, EBITDA margin will be heavily dependent on revenue performance, possible M&A, increased platform capacity and anticipation of greater demand for over-the-top video delivery services and continued foreign exchange movements. The company expects non-GAAP depreciation expense to be $64 million to $65 million, up from first quarter levels due to increase driven by first quarter and planned second quarter network and facility build-outs, as well as the completion of several large software projects. Factoring in this depreciation guidance, the company expects non-GAAP operating margin of 28% to 29% for second quarter. The company expects second quarter non-GAAP EPS in the range of $0.55 to $0.59. This EPS guidance assumes taxes of $49 million to $52 million based on an estimated quarterly non-GAAP tax rate of 33%, consistent with first quarter levels. On CapEx, the company expects to spend approximately $108 million to $113 million in the quarter, excluding equity compensation. The elevated levels of CapEx are primarily driven by desire to increase capacity to stay ahead of anticipated traffic growth on the network.
For the full year, the company is expecting to be at or slightly above the high end of long-term model for CapEx as a percent of revenue, primarily driven by network expansion that the company will continue throughout the year. First quarter tax rate is 1 point higher than guidance due to a revised full year 2015 tax rate projection that takes into account the negative impact of the strengthening USD on projected 2015 foreign earnings.