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$AKAM released plans for building of its new global headquarters in Cambridge, Massachusetts. $AKAM agreed with $BXP to lease a newly-constructed building at 145 Broadway, in the heart of Cambridge's Kendall Square neighborhood. The about 486,000 square foot building is scheduled to open at end of 2019.
$AKAM announced the appointment of Fari Ebrahimi as SVP and Chief Information Officer, effective immediately. Mr. Ebrahimi succeeds Kumud Kalia and he will report to CEO Dr. Tom Leighton. Mr. Ebrahimi joins $AKAM from Avaya. He will be based in $AKAM’s corporate headquarters in Cambridge, Massachusetts.
$AKAM completed its acquisition of Nominum, a provider of DNS-based security solutions supporting many of the world's leading carriers. The combination of the two companies’ technologies and teams is expected to help Akamai serve a larger base of carrier and enterprise customers with more comprehensive security products.
$AKAM expects its Enterprise Threat Protector to benefit from its acquisition of Nominum later in the year. Additionally, the company also expects that the Nominum acquisition will strengthen its access to the carrier channel for its enterprise security products.
$AKAM's YoY traffic growth rate in 3Q17 was the strongest since 2015 and exceeded its expectations. On CapEx, the company said it expects to spend $90-100MM, excluding equity compensation in 4Q17. For the full year, the company added that the CapEx level would be about 16% of revenue.
Content delivery network and cloud services provider $AKAM's profit slumped for 3Q17, while revenue grew 6% to $621MM, driven by strong growth in its Cloud Security Solutions and traffic growth in its Media business. Profit declined 20% to $61MM, with diluted EPS slumping 19% to $0.35 per share. $AKAM's non-GAAP EPS was $0.62 per share.
Cloud services provider $AKAM to acquire privately held DNS and enterprise security solutions provider Nominum. The all-cash deal is expected to close at the end of 4Q17. The acquisition would add complementary capabilities to $AKAM's portfolio of security offerings while expanding its distribution to carriers that serve enterprise customers.
$AKAM named Aaron Ahola as its Senior Vice President, General Counsel and Corporate Secretary, effective October 1st. He will succeed Melanie Haratunian who is retiring after 14 years of service with $AKAM. As part of the transition, she will remain with the company in an advisory role reporting to Dr. Leighton.
$AKAM posted a 6% hike in revenue of $609MM for 2Q17, but costs and expenses pushed net income down by 22% to $58MM or $0.33 per diluted share. Non-GAAP EPS was down 3% to $0.62 per diluted share, while GAAP income from operations fell 21% to $87MM.
$AKAM has launched Enterprise Threat Protector, a cloud-based protection against targeted threats such as malware, phishing and DNS based data exfiltration. The solution layers critical intelligence onto recursive DNS requests and prevents users from accessing malicious domains. It also disrupts communications between infected devices.
Cloud delivery platform $AKAM in its latest State of the Internet Report said global average connection speed rose 15% YoY in 1Q17, and average peak connection speed increased 28%. The number of unique IPv4 addresses connected to the Akamai Intelligent Platform rose by 0.7%. The average mobile connection speeds ranged between 26 Mbps and 2.8 Mbps.
$AKAM stated that media traffic is growing substantially and also OTT traffic is growing at a substantial rate. Therefore, the company added that it's not a situation of underutilization, but that the growth rate is less than they were before.
$AKAM spent $72MM to repurchase 1.1MM shares of its common stock at an average price of $65.78 per share during 1Q17. As of March 31, 2017, the company had approx. 173MM shares of common stock outstanding. By geography, revenue grew 2% YoY in the US at $407MM, while international revenue was up 19% at $203MM in 1Q17.
Cloud services provider $AKAM reported higher 1Q17 earnings, driven by strong results in the performance and security solutions segment and overall revenue growth. Net income grew 8.10% to $80.93MM or $0.46 per share from $74.86MM or $0.42 per share a year ago. Revenue grew 7.3% YoY to $609.23MM. Excluding items, $AKAM earned $0.69 per share.
$AKAM agreed to acquire SOASTA, a Digital Performance Management company. The acquisition is intended to give $AKAM customers greater visibility into the business impact of their website and application optimization strategies. The all-cash transaction is expected to close early in 2Q17. Financial details of the transaction were not disclosed.