Akamai (NASDAQ:AKAM, news, filings) turned in a strong first quarter, but rattled the markets a bit with some succession news. CEO Paul Sagan is planning to leave the company by the end of 2013, staying on for the transition period until a successor can be brought in. Here is a quick table of Q1 results in some context:
|$ in millions||Q1/11||Q2/11||Q3/11||Q4/11||Q1/12||Q2/12
Revenues of $319.4M were within guidance but above analyst expectations, which had been on the low end of the range. Second quarter forecasts were ahead of estimates by a similar margin.
Gross margins fell back below 68%, and the company said it expected them to decline a percent or two this year due to support for investment and integration efforts for the Cotendo deal. This is a highly anticipated number for Akamai in recent quarters, watched carefully to see if competitive pressures are cutting into their profits. Capex will also be at the high end of its guidance.
Earnings per share of $0.41 were a few pennies above expectations and guidance, while projections for Q2 were in-line with expectations.
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