Headline Feeds
Akamai Technologies (Nasdaq: AKAM) rose 13 U.S. cents to $6.13 in morning trading Thursday, after the Internet content provider said its loss for the first quarter will be narrower than expected.
Akamai also said that it expects to break even before taxes and other items earlier than previously thought. At the same time, however, the company lowered its outlook for first-quarter revenue and announced plans to cut jobs.
The Cambridge, Massachusetts-based company said it expects revenue of $39 million to $41 million, below its previous estimate of $45 million. The loss before interest, taxes, depreciation and amortization will be $35 million to $38 million, smaller than the $45 million previously forecast.
Akamai also said it expects a writedown during the quarter related to the acquisition last year of Intervu.
The company also lowered its projection for full-year revenue, to $175 million to $190 million from $240 million to $250 million, while predicting a loss of $110 million to $120 million instead of the previously projected $140 million to $150 million.
Chairman and chief executive officer George Conrades attributed the revenue shortfall to "lower-than-expected non-recurring revenue" and "continuing fallout among dot-com customers."
Akamai said it plans to cut its workforce by 14 percent, mainly in the areas of streaming support, general product marketing, internal infrastructure and administration.
The company said it expects to break even before interest, taxes, depreciation and amortization in the second quarter of 2002, one quarter earlier than previously predicted.
"We have put our startup losses and significant upfront capital expenditures
behind us, our cash burn rate has decreased, and we expect it to continue to
decline throughout the year," Conrades said.
Talkback: 
