Akamai revenue rises on demand for cloud security
(Reuters) - Akamai Technologies Inc, a provider of services that speed up delivery of content over the internet, reported a better-than-expected 7.8 percent rise in quarterly revenue, helped by higher demand for its cloud security services.
Revenue from Akamai's cloud security business, which protects websites and data centers from cyber attacks, rose 46 percent to $80.7 million for the first quarter.
The Cambridge, Massachusetts-based company is facing a slowdown in its media delivery business after two of its largest customers, which the company has not identified, recently switched to their own delivery networks.
As of Dec. 31, Akamai's customers included Apple Inc, eBay Inc and Comcast Corp's NBCUniversal.
The company's net income fell to $74.9 million, or 42 cents per share, for the quarter ended March 31, from $77.7 million, or 43 cents per share, a year earlier.
Revenue rose to $567.7 million from $526.5 million.
Excluding items, the company earned 66 cents per share.
Analysts on average had expected earnings of 63 cents per share and revenue of $563.8 million, according to Thomson Reuters I/B/E/S.
The company's shares were down 0.6 percent at $52.34 in trading after the bell on Tuesday.
(Reporting by Rishika Sadam in Bengaluru; Editing by Sriraj Kalluvila)
