CDN and cloud provider Akamai (NASDAQ:AKAM, news, filings) is up after hours following its Q3 earnings report, something that has been a bit rare lately. Revenues were a bit above expectations, while earnings were in line. Both were at the high end of guidance, and the company's fourth quarter projections were pretty much as expected. here's a quick table of the company's numbers in context:
|$ in millions||Q3/10||Q4/10||Q1/11||Q2/11||Q3/11||Q4/11(guidance)|
A solid quarter to be sure, and that's what Akamai investors needed. The media has been full of the competitive challenges the company faces in today's market, but it bears remembering that this company is very profitable and very well run.
But I think that the market's positive response has as much to do with the management reshuffle they also announced today. The company's president, David Kenny, is leaving to pursue entrepreneurial interests, and they have brought in Kumud Kalia as CIO and Rick McConnell as EVP Products and Development. Kalia was previously CIO at Direct Energy at Qwest's business markets division, while McConnell was VP of Cisco's unified communications unit.
That's some high powered external talent coming in to what are, for Akamai, key management roles. They are adding some muscle to take on those competitive challenges ahead, and it's interesting to note that both have some history in telecommunications of some sort. Kenny's departure will leave a void, I wonder where he'll resurface.
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