This summary is based on the first quarter fiscal 2008 earnings call conducted by Akamai Technologies Inc. (AKAM: chart) on April 30, 2008.

Management:

- President, CEO: Paul Sagan
- CFO: J.D. Sherman
- Senior Manager IR: Noelle Faris

Key Investors Issues

- Revenue increased 34% to $187 million.
- Net income was up 93% $36.9 million, or 20 cents per share from $19.12 billion or 12 cents a share in 2007.
- The number of customers under long-term services contracts increased to 2,672, an 8% increase year-over-year.

First Quarter Highlights

Revenue of $187 million, was 34% up from $139.3 million in the year ago period due to organically-driven growth.

- International sales represented 25% of total revenue, up 2 points from fourth quarter levels.
- Resellers represented 16% of total revenue consistent with the prior quarter and no customer accounted for 10% or more of revenue.
- Consolidated ARPU, average revenue per customer was $23,200, up 21% year-over-year as the firm continue to focus on building deeper and broader relationships with the enterprise class customers.
- The firm added 27 net new customers bringing total customer count to 2,672.

Churn was just over 4%, again driven mostly by smaller customers and a bit higher than the recent run rates due to the residual churn from last year''s acquisition.

- Gross profit margin which includes both depreciation and stock-based compensation was 72% from the quarter.
- Cash gross margins were 81% which is down about 3 cents of a point.
- The firm continues to capture the value for the differentiated services as well as add new functionality that improved the overall profitability.

Net income increased 93% to $36.9 million, or 20 cents per share from $19.12 billion or 12 cents a share in 2007 on revenue growth and the value of having a diversified portfolio of solutions and customers.

- Operating expenses were $82.1 million, which is down slightly from the prior quarter.
- Adjusted EBITDA was $87.2 million, roughly consistent with the prior quarter and up 48% from the same period last year.
- Total depreciation and amortization was $22.6 million, up from $20.2 million in the fourth quarter, including $16.2 million of network-related depreciation, $2.8 million of G&A depreciation and $3.6 million of amortization of intangible assets.
- Net interest income was $7.3 million.

Cash from operations was $88 million, or 47% of revenue, up 66% compared to last year.

- The firm had $687 million in cash, cash equivalents and marketable securities on the balance sheet.
- This cash balance includes $280 million of AAA-rated federally insured student loan auction rate securities.
- Capital expenditures excluding equity compensation were $28.2 million or 15% of revenue.

Operational Highlights:

- Adobe has adopted the Stream OS solution to power its media management and distribution workflow for Adobe TV.
- Stream OS is an important addition to the product portfolio that helps the media and entertainment client monetize their online content more effectively.
- Fujitsu has selected the firm to accelerate its next generation network as a service or cloud computing solution.
- The firm’s Dynamic Site Solutions help commerce clients and accelerates the performance of complex eCommerce destinations that helps customers raise the expected value of the visitor to their website and drives up revenues.

Fiscal 2008 Outlook:

- The firm expects that revenue will grow between 26% and 30% for the year or to between $800 million and $825 million.
- Cash gross margins are expected to trend downward by about two points for the full year.
- For the second quarter of this year, the firm is expecting revenue in the range of $194 million to $199 million.
- Normalized earnings per diluted share for the second quarter are expected in the range of 41 cents to 42 cents, a 37% to 40% increase year-over-year.

Key questions and answers from the first quarter earnings call conducted by Akamai Technologies Inc. (AKAM: chart) on April 30, 2008.

David Hilal (FBR): If the pricing environment has changed, has that caused the slower decline in gross margin?