Earnings Roundup: Akamai, Level 3, Equinix
July 30th, 2010 By: John Rath
Here’s a roundup of some of this week’s quarterly financial reports from the data center industry:
Akamai Shares Fall After Earnings Reports. Shares of Akamai (AKAM) slipped nearly 13 percent Thursday after the content delivery network reported financial results for the second quarter ended June 30. Revenue for the second quarter 2010 was $245.3 million, a 20 percent increase over second quarter 2009 revenue of $204.6 million. “Demand for our services grew across all verticals of our business,” said Paul Sagan, president and CEO of Akamai. “We believe our strong performance in the second quarter demonstrated continued traction for our services that enable cloud computing adoption, growth in online HD video, and more effective online advertising.”
The market didn’t agree, and Akamai stock dropped $5.68 to close at $38.35 a share, a decline of 12.9 percent on the session. See Tech Trader Daily for more on the reaction to Akamai’s earnings.
Equinix reports second quarter 2010 results. Equinix (EQIX) reported quarterly results for the quarter ended June 30, 2010. This quarter includes the results from the acquisition of Switch & Data. Reported revenues were $296.1 million with $282.1 million coming from colocation, interconnection and managed services. ”Equinix saw strong Q2 financial results in all three of its operating regions and is on target to meet 2010 objectives,” said Steve Smith, CEO and President of Equinix. A net loss of $2.3 million or diluted net loss per share of $0.05 was primarily attributed to restructuring charges due to the Switch & Data integration. Strong bookings were noted internationally, and the addition of space in Virginia and Atlanta was announced Thursday as well.
Level 3 reports second quarter 2010 results. Level 3 Communications (LVLT) reported solid second quarter 2010 results, highlighted by sequential growth in core network services revenue. A net loss for the second quarter of $169 million included $54 million attributed to the loss on the extinguishment of debt. Large Enterprise and Federal communications revenue at $142 million, grew 4 percent from the first quarter of 2010 and 15 percent from the second quarter of 2009. “Mid-market revenues declined in the second quarter of 2010, but we saw a significant ramp in Core Network Services sales. Core Network Services sales for mid-market increased by more than 10 percent from the fourth quarter 2009 to the first quarter 2010,” said Sunit Patel, executive vice president and CFO of Level 3.