Akamai profits plummet despite 206 per cent revenue rise
Meanwhile, IBM licenses its Web acceleration technology
Web acceleration specialist Akamai today posted a fourth-quarter loss up 58 per cent on the previous three-month period despite an increase of 206 per cent in the company's sales.
During the quarter, Akamai lost $29.2 million. In the previous quarter, it lost $18.5 million. Figures for the same period last year were not given, since back then Akamai was a private company and able to keep its financial details under wraps. Between the end of the third quarter and the end of the fourth, Akamai's revenue shot up from $880,000 to $2.7 million. Contributing to that figure are some 227 customers, up from 44 in October, the month in which the company launched its IPO.
The results announcement follows a deal struck yesterday with IBM which will see Big Blue essentially resell Akamai's technology to its large-scale Web server customers and use the same technology to accelerate its own Web hosting services. In exchange, Akamai committed itself to buying IBM Netfinity servers running Linux as it expands its own Web hosting service.
During the last quarter, Akamai increased its network by some 600 servers worldwide, taking the total to over 2000 machines. The company said it has sites in over 40 countries. ®