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Akamai: Board Of Directors Authorizes New $1 Billion Share Repurchase Program CAMBRIDGE, Mass.

The following excerpt is from the company's SEC filing.

– Akamai Technologies, Inc. (NASDAQ: AKAM), the global leader in Content Delivery Network (CDN) services, today reported financial results for the

fourth

quarter and full-year ended

December 31, 2015

“Akamai’s solid fourth quarter performance capped off an excellent year on both the top and bottom lines,” said Dr. Tom Leighton, CEO of Akamai. “Revenue achievement in the quarter was driven by a robust online holiday shopping season, as well as continued rapid growth of our Cloud Security Solutions. Our Security business grew 50% year-over-year in constant cur rency and has now achieved an annualized run rate of nearly $300 million.”

Akamai delivered the following results for the fourth quarter and full-year ended

Revenue:

Revenue for the

$579 million

increase over

revenue of

$536 million

, and an

increase when adjusted for foreign exchange.* Total revenue for

$2.197 billion

$1.964 billion

and a

Revenue by Solution Category:

Performance and Security Solutions revenue for the

$286 million

year-over-year and

when adjusted for foreign exchange.* Performance and Security Solutions revenue for

$1.050 billion

Cloud Security Solutions revenue, a component of Performance and Security, for the

$73 million

when adjusted for foreign exchange.* Cloud Security Solutions revenue for

$254 million

year-over-year and up

Media Delivery Solutions revenue for the

$247 million

when adjusted for foreign exchange.* Media Delivery Solutions revenue for

$977 million

Service and Support Solutions revenue for the

$46 million

when adjusted for foreign exchange.* Service and Support Solutions revenue for

$170 million

Revenue by Geography:

U.S. revenue was

$416 million

quarter, a

revenue. U.S. revenue for

$1.604 billion

International revenue was

$163 million

revenue and a

increase when adjusted for foreign exchange.* International revenue for

$593 million

Income from operations:

GAAP income from operations for the

$123 million

decrease

GAAP income from operations of

$136 million

. GAAP operating margin for the

percentage points from the same period last year. GAAP income from operations for

$466 million

from the prior year's GAAP income from operations of

$490 million

. Full-year GAAP operating margin was

4 percentage points from the prior year.

Non-GAAP income from operations* for the

$168 million

non-GAAP income from operations of

$175 million

. Non-GAAP operating margin* for the

quarter was 29%, down 4 percentage points from the same period last year. Non-GAAP income from operations* for

$638 million

from the prior year's non-GAAP income from operations of

$648 million

. Full-year non-GAAP operating margin* was

, down 4 percentage points from the prior year.

Net Income:

GAAP net income for the

$88 million

GAAP net income of

$97 million

. Full-year GAAP net income was

$321 million

$334 million

Non-GAAP net income* for the

$129 million

non-GAAP net income of

$127 million

. Full-year non-GAAP net income* was

$454 million

$449 million

GAAP and non-GAAP net income* results for the fourth quarter include a $12 million, or $0.06 per diluted share, benefit from

the reinstatement of the federal R&D tax credit, which was retroactive to January 1, 2015.

GAAP EPS was

per diluted share, a

GAAP EPS of

and a 5% decrease when adjusted for foreign exchange*. Full-year GAAP EPS was

per diluted share and a 2% increase when adjusted for foreign exchange.*

Non-GAAP EPS* was

non-GAAP EPS* of

and a 5% increase when adjusted for foreign exchange*. Full-year non-GAAP EPS* was

per diluted share and a 6% increase when adjusted for foreign exchange.*

Adjusted EBITDA:

Adjusted EBITDA* for the

$238 million

Adjusted EBITDA* of

$232 million

. Adjusted EBITDA margin* for the

, down 2 percentage points from the same period

last year. Adjusted EBITDA* for the full-year was

$897 million

from the prior year's Adjusted EBITDA* of

$853 million

. Full-year adjusted EBITDA margin* was

Cash flow from operations:

Cash from operations for the fourth quarter was

$218 million

of revenue, and for the full-year was

$764 million

of revenue. Cash, cash equivalents and marketable securities were

$1.5 billion

at December 31, 2015.

Share Repurchase Program

The Company also announces today that its Board of Directors has authorized a new $1 billion share repurchase program, effective from February 9, 2016 through December 31, 2018. The Company's goal for this program is to offset the dilution created by its employee equity compensation programs and provide the flexibility to increase its capital distributions to shareholders as business and market conditions warrant.

The timing and amount of any shares repurchased will be determined by the Company's management based upon the evaluation of market conditions and other factors. Repurchases will be executed in the open market subject to Rule 10b-18, and may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. Other structured repurchase programs may be considered from time to

time. The Company may choose to suspend, expand or discontinue the repurchase program at any time.

The Company spent

$100 million

in the fourth quarter to repurchase

1.7 million

shares of its common stock at an average price of

$60.14

per share, under the Company's previous share repurchase plan. For the full-year, the Company spent

$303 million

4.5 million

$67.05

per share.

The Company had approximately

177 million

shares of common stock outstanding as of

*See Use of Non-GAAP Financial Measures below for definitions.

Quarterly Conference Call

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-877-258-4918 (or 1-480-405-6743 for international calls) and using passcode No. 12553604. A live webcast of the call may be accessed at

www.akamai.com

in the Investor section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-855-859-2056 (or 1-404-537-3406 for international calls) and using passcode No. 12553604. The archived webcast of this event may be accessed through the Akamai website.

About Akamai

As the global leader in Content Delivery Network (CDN) services, Akamai makes the Internet fast, reliable and secure for its customers. The company’s advanced web performance, mobile performance, cloud security and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise and entertainment experiences for any device, anywhere. To learn how Akamai solutions and its team of Internet experts are helping businesses move

faster forward

, please visit

blogs.akamai.com

, and follow @Akamai on Twitter.

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

December 31, 2014

ASSETS

Current assets:

Cash and cash equivalents

289,473

238,650

Marketable securities

460,088

519,642

Accounts receivable, net

380,399

329,578

Prepaid expenses and other current assets

123,228

128,981

Deferred income tax assets

45,704

Total current assets

1,253,188

1,262,555

Property and equipment, net

753,180

601,591

774,674

869,992

Goodwill

1,150,244

1,051,294

Acquired intangible assets, net

156,095

132,412

Other assets

95,844

81,747

Total assets

4,187,925

4,001,546

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

61,982

77,412

Accrued expenses

216,166

204,686

Deferred revenue

54,154

49,679

Other current liabilities

Total current liabilities

332,440

334,011

Deferred income tax liabilities

12,888

39,299

Convertible senior notes

624,288

604,851

Other liabilities

93,268

74,221

Total liabilities

1,067,047

1,056,211

Total stockholders’ equity

3,120,878

2,945,335

Total liabilities and stockholders’ equity

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Year Ended

(in thousands, except per share data)

September 30, 2015

579,159

551,030

536,295

2,197,448

1,963,874

Costs and operating expenses:

Cost of revenue

(1) (2)

193,212

183,204

163,201

725,620

610,943

Research and development

37,674

38,396

32,417

148,591

125,286

Sales and marketing

118,582

107,426

110,293

440,988

379,035

General and administrative

99,978

99,543

85,899

388,265

325,845

Amortization of acquired intangible assets

27,067

32,057

Restructuring charges

Total costs and operating expenses

456,479

435,341

400,213

1,731,298

1,474,355

122,680

115,689

136,082

466,150

489,519

Interest income

11,200

Interest expense

(4,641

(4,630

(4,524

(18,525

(15,463

Other (expense) income, net

(2,201

(1,960

Income before provision for income taxes

120,475

113,986

133,857

456,624

479,776

Provision for income taxes

32,055

25,946

36,750

135,218

145,828

Net income

88,420

88,040

97,107

321,406

333,948

Net income per...


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