FoRK Archive: Akamai Files for $86m IPO

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Akamai Technologies Inc, the Cambridge, Massachusetts-based supplier of =
internet content acceleration technology has filed for its initial =
public offering, hoping to raise up to $86.3m before expenses.=20

Akamai has developed software called FreeFlow, which when placed on =
servers at the edge of the networks that comprise the internet, =
accelerates the delivery of web content using an algorithm. It makes =
money by charging content providers, such as Yahoo! Inc and CNN =
Interactive to house their content on their servers round the world. =
Content providers are charged by the megabit, starting at $2,000 per =
megabit per second, with discounts for volume usage. Some of the =
technology is licensed from Massachusetts Institute of Technology (MIT), =
where some of the executives developed it.=20

At present the service delivers static HTML content, but the company =
plans to introduce streaming audio and video in the near future, which =
will be aided by the company' strategic agreement with Apple Computer =
Inc, which was signed in June but announced last week. Apple invested =
$12.5m in Akamai as part of that deal and it secured $49m from Cisco =
Systems Inc last week.=20

At the end of July this year the company had deployed 900 servers in 15 =
countries across 25 networks, including AboveNet Communications, AT&T, =
Digex, Exodus Communications and GTE Internetworking. The company does =
not derive revenue from placing the server on the network, but it is =
mutually beneficial because the ISP gets a faster network and Akamai =
gets a chance to offer its service to content providers.=20

The S-1 filing warns that in the quarter ending June 30, one customer =
accounted for 75% of the revenues and another one for 14%, but the =
company could not identify those customers yesterday due to its =
quiet-period restrictions. In the six months to June 30 the company =
recorded net losses of $10.1m on revenues of $403,949, having started =
recording revenues in April.

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from Computergram=20 International...rack 'em up.

Akamai Files for = $86m IPO=20

Section: 03. Financial News

Akamai Technologies Inc, the Cambridge, Massachusetts-based supplier = of=20 internet content acceleration technology has filed for its initial = public=20 offering, hoping to raise up to $86.3m before expenses.=20

Akamai has developed software called FreeFlow, which when placed on = servers=20 at the edge of the networks that comprise the internet, accelerates the = delivery=20 of web content using an algorithm. It makes money by charging content = providers,=20 such as Yahoo! Inc and CNN Interactive to house their content on their = servers=20 round the world. Content providers are charged by the megabit, starting = at=20 $2,000 per megabit per second, with discounts for volume usage. Some of = the=20 technology is licensed from Massachusetts Institute of Technology (MIT), = where=20 some of the executives developed it.=20

At present the service delivers static HTML content, but the company = plans to=20 introduce streaming audio and video in the near future, which will be = aided by=20 the company' strategic agreement with Apple Computer Inc, which was = signed in=20 June but announced last week. Apple invested $12.5m in Akamai as part of = that=20 deal and it secured $49m from Cisco Systems Inc last week.=20

At the end of July this year the company had deployed 900 servers in = 15=20 countries across 25 networks, including AboveNet Communications, = AT&T,=20 Digex, Exodus Communications and GTE Internetworking. The company does = not=20 derive revenue from placing the server on the network, but it is = mutually=20 beneficial because the ISP gets a faster network and Akamai gets a = chance to=20 offer its service to content providers.=20

The S-1 filing warns that in the quarter ending June 30, one customer = accounted for 75% of the revenues and another one for 14%, but the = company could=20 not identify those customers yesterday due to its quiet-period = restrictions. In=20 the six months to June 30 the company recorded net losses of $10.1m on = revenues=20 of $403,949, having started recording revenues in=20 April.