April 30, 2018 / 8:08 PM / 19 days ago

Akamai revenue beats estimates as cloud security drives growth

April 30 (Reuters) - Akamai Technologies Inc trounced Wall Street’s estimates for quarterly revenue on Monday, helped by an aggressive push into cloud security and as its traditional business of speeding up media content delivery stabilized.

Revenue rose 11.4 percent to $668.7 million, beating analysts’ estimate of $654 million, according to Thomson Reuters I/B/E/S.

However, the company’s net income fell 28 percent to $53.7 million, or 31 cents per share, in the first quarter ended March 31 as the company recorded a restructuring charge and settled a legal dispute.

The company took $15 million charge related to restructuring and $23 million for a legal settlement.

Akamai said in the fourth quarter it cut about 5 percent of its global workforce, or about 400 positions, mostly in areas tied to its declining media business in efforts to improve operational efficiency.

The company’s media content business remains under pressure as large media customers, such as Apple Inc and Amazon.com, develop in-house capabilities to handle their web traffic.

Revenue in the cloud security business surged 36 percent to $149 million in the quarter.

Excluding items, Akamai earned 79 cents per share. (Reporting by Sonam Rai in Bengaluru: Editing by Sriraj Kalluvila)

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