Akamai Technologies Inc. said Tuesday its profit fell 7.8% in
the June quarter.
Shares, up nearly 17% this year, dropped almost 5% in
after-hours trading as earnings came in weaker than expected.
The Cambridge, Mass., cloud-computing service firm and online
content distributor had benefited from growing demand for streaming
television along with demand for security applications spurred by a
recent string of high-profile data breaches.
In March, the company disclosed it launched an internal probe
into sales practices at an unspecified overseas market and notified
the Securities and Exchange Commission and the Justice Department
about a possible violation of the Foreign Corrupt Practices Act,
which bars bribery of foreign officials to get or keep
business.
In the most recent period, revenue in its
performance-and-security segment grew to $256 million from $222
million.
Overall, Akamai reported a profit of $67.2 million, or 37 cents
a share, down from $72.9 million, or 40 cents a share, a year
earlier. Excluding stock-based compensation and other items, profit
fell to 57 cents from 58 cents.
Revenue, however, rose to $540.7 million from $476 million.
Analysts had expected earnings of 58 cents a share on revenue of
$540 million.
Write to Angela Chen at angela.chen@wsj.com
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