This is a summary of the third quarter fiscal 2006 earnings call conducted by Akamai Technologies (AKAM: chart) on October 26, 2006

Management:

- President, CEO: Paul Sagan
- CFO: JD Sherman
- Director, IR: Sandy Smith

Key investors issues:

- Revenue grew to $111.5 million, up 47% from the prior year.
- Net income was $14 million or 8 cents a share, down 95% from $272.3 million or $1.71 a share in the prior year.
-The number of customers under long-term services contracts at the end of the third quarter increased by 84% to a record 2,144.

Year to Date Highlights:

- Revenue rose grew to $303 million, up 50.7% from $200.5 million in the prior year.
- Net income was $35.8 million or 24 cents a share, down 88% from $302 million or $2.29 a share in the prior year.

Third Quarter Highlights:

Revenue grew to $111.5 million, up 47% year-over-year and 11% over the prior period as average revenue per customer (ARPU), grew to $17,500 per month, up 7%.

- Akamai added 84 net new customers to the platform bringing total customer count to 2,144.
- International sales represented 22% of total revenue, and resellers accounted for 20% of total revenue.
- No customer accounted for 10% or more of revenue.

Gross profit margin was 78%, which includes network-related depreciation and equity-related compensation charges

- Network or COG''s depreciation increased by $1.1 million in the quarter.
- Cash gross margin, which excludes depreciation and equity-related compensation charges, was 85.
- Operating expenses were $64.8 million, up from $62.2 million in the prior quarter.
- EBITDA margin expanded by 2 points to 42%, a 5 point improvement over the same period last year.
- Depreciation and amortization was $10.5 million, up from $9.6 million in the prior period including $7.3 million of network-related depreciation, $1.3 million of G&A depreciation, and $1.9 million of amortization of intangible assets.
- Net interest was positive, generating about $4 million of net interest income.

Net income was $14 million or 8 cents a share, down 95% from $272.3 million or $1.71 a share in the prior year due to equity-related compensation charges related to FAS 123R and book tax charges at an effective rate of 45%.

- Equity-related compensation expense was about $14.6 million or 8 cents per share on a pre-tax basis.
- Net income also includes $1.9 million from amortization of intangible assets, and an $11.2 million non-cash tax charge.

Akamai ended the quarter with $416 million of cash, cash equivalent, and marketable securities, up from $367 million at the end of the prior period.

- The firm generated $48.5 million of cash from operations, up significantly over the prior quarter, driven both by strong operational results and some favorable working capital impact.
- Capital expenditures were $17.5 million, including $1.1 million of equity compensation charges which were capitalized related to the internal use software development.
- Day sales outstanding for the quarter were 54 days consistent with last quarter.

Outlook fiscal 2006:

- Akamai increased the guidance to $421 million to $426 million for the full year, which translates into year-over-year growth of roughly 50% at the midpoint.
-Akamai expect to deliver normalized earnings per share of 87 cents a share; 3 cents to 4 cents a share higher than the previous guidance.

Key questions and answers for the third quarter fiscal 2006 earnings call, conducted by Akamai Technologies (AKAM: chart), on October 26, 2006

Todd Raker: Can you just comment on the competitive landscape?

Paul Sagan: They are seeing it as a major channel to replace losses in old channels of their business and we believe that when quality matters, they are going to turn to a trusted provider like Akamai. In terms of large customers, we have always dealt with a dynamic of do-it-yourself versus outsource with those customers.

Todd Raker: Can you comment on any expectations or potential impact from the Vista launch?