Akamai Technologies & TriQuint Semiconductor Tanked On Earnings
Akamai Technologies, Inc. (NASDAQ:AKAM) shares fell by 6 percent in the aftermarket trade. Akamai Technologies Inc., the Internet content delivery company’s position for second-quarter profit fell short of analysts’ estimates. The company expects the second quarter adjustments of 36 cents to 38 cents per share on revenue of $322 million to $330 million while the analysts estimated the adjusted earnings of 39 cents per share on revenue of $314.8 million.
James Benson, the Chief Financial Officer of the company said in a conference call, “”We expect second-quarter operating expenses to increase by about $11 million from the prior quarter as we absorb the Cotendo and Blaze acquisitions and as we continue to invest organically.”
Acquiring the rival company Cotendo in December for $268 million, the company strengthened its web acceleration business, adding clients such as Facebook, Zynga Inc, Google Inc and AT&T Inc. Cotendo makes software to speed up web and mobile sites. The company also expect to spend around $65 million to $70 million in the quarter for capital expenditure.
Recording profit above the analysts’ estimates in the first quarter, Akamai earned $43 million, or 24 cents per share, in the quarter, compared with $51 million, or 26 cents per share, a year ago. The company competes with Level 3 Communications and Limelight Networks. Leaving out the items, the company earned 41 cents per share kicking the revenue up by 16 percent to $ 319 million.
TriQuint Semiconductor (NASDAQ:TQNT) shares also plunged 16% as the company provided below analysts’ estimates revenue and earnings guidance.
In the first quarter, the company earned 2 cents a share, down from 15 cents a share in the same period last year, and in line with Wall Street’s estimate.
Revenue during the quarter fell to $216.7 million, from $224.3 million a year ago, just above analysts’ forecast of $214.68 million.
The company projects to book a loss of 10 to 15 cents a share on revenue of $170 million and $185 million in the current quarter, well below analysts’ estimates of a profit of 5 cents a share on revenue of $222.95 million.
However, the company projects to move back to normal growth Q3.