Akamai Technologies, Inc. (AKAM) has reported 3.64 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $91.64 million, or $0.52 a share in the quarter, compared with $88.42 million, or $0.49 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $126.15 million, or $0.72 a share compared with $128.71 million or $0.72 a share, a year ago.
Revenue during the quarter grew 6.38 percent to $616.12 million from $579.16 million in the previous year period. Gross margin for the quarter expanded 34 basis points over the previous year period to 66.97 percent. Total expenses were 79.95 percent of quarterly revenues, up from 78.82 percent for the same period last year. That has resulted in a contraction of 113 basis points in operating margin to 20.05 percent.
Operating income for the quarter was $123.53 million, compared with $122.68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $173.73 million compared to $167.96 million in the prior year period. At the same time, adjusted operating margin contracted 80 basis points in the quarter to 28.20 percent from 29 percent in the last year period.
"We were very pleased with how well we ended 2016, with both revenue and earnings exceeding our expectations for the fourth quarter," said Dr. Tom Leighton, chief executive officer of Akamai. "Our strong results were driven by robust seasonal traffic, continued rapid growth of our Cloud Security Solutions and the success of our recently launched new products. As we look forward to 2017, we are very optimistic about the opportunities ahead of us and plan to continue investing in innovation and the expansion of our product portfolio."
Operating cash flow improves
Akamai Technologies, Inc. has generated cash of $866.30 million from operating activities during the year, up 13.37 percent or $102.15 million, when compared with the last year.
The company has spent $469.43 million cash to meet investing activities during the year as against cash outgo of $435.56 million in the last year.
The company has spent $354.26 million cash to carry out financing activities during the year as against cash outgo of $267.73 million in the last year period.
Cash and cash equivalents stood at $324.17 million as on Dec. 31, 2016, up 11.99 percent or $34.70 million from $289.47 million on Dec. 31, 2015.
Working capital increases marginally
Akamai Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $935.33 million as at Dec. 31, 2016, up 1.58 percent or $14.58 million from $920.75 million on Dec. 31, 2015. Current ratio was at 3.50 as on Dec. 31, 2016, down from 3.77 on Dec. 31, 2015.
Debt moves up marginally
Akamai Technologies, Inc. has witnessed an increase in total debt over the last one year. It stood at $640.09 million as on Dec. 31, 2016, up 3.57 percent or $22.04 million from $618.05 million on Dec. 31, 2015. Akamai Technologies has witnessed an increase in long-term debt over the last one year. It stood at $640.09 million as on Dec. 31, 2016, up 3.57 percent or $22.04 million from $618.05 million on Dec. 31, 2015. Total debt was 14.64 percent of total assets as on Dec. 31, 2016, compared with 14.76 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.20 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 26.40 for the quarter from 26.43 for the same period last year.
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