StockSelector.com
  Research, Select, & Monitor Thursday, July 19, 2018 9:44:30 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Limelight Networks Inc$4.72($.01)(.21%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Limelight Networks Reports Record Fourth Quarter and Full Year Financials
   Wednesday, February 07, 2018 4:01:00 PM ET

--Q4 Gross Margin of 47.7%, up 280 basis points, year over year

--Q4 GAAP EPS of $(0.01) and Non-GAAP EPS of $0.04

--Full Year Revenue, Gross Margin and Adjusted EBITDA highest ever as public company

Limelight Networks, Inc. (LLNW ) (Limelight), a global leader in digital content delivery, today reported revenue of $48.2 million for the fourth quarter of 2017, up 10 percent, compared to $43.8 million in the fourth quarter of 2016, and up 5 percent, compared to $46.1 million in the third quarter of 2017. Currency favorably impacted year-over-year comparison by $0.3 million and sequential comparison by $0.1 million.

Gross margin was 47.7% in the fourth quarter of 2017, an increase of 280 basis points from 44.9% in the fourth quarter of 2016.

Limelight reported a net loss of $0.9 million, or $0.01 per basic share for the fourth quarter of 2017, compared to a net loss of $3.9 million, or $0.04 per basic share in the fourth quarter of 2016.

Non-GAAP net income was $3.9 million or $0.04 per basic share for the fourth quarter of 2017, compared to a non-GAAP net loss of $1.8 million, or $0.02 per basic share in the fourth quarter of 2016.

EBITDA was $3.9 million for the fourth quarter of 2017, compared to $1.9 million for the fourth quarter of 2016. Adjusted EBITDA was $8.7 million for the fourth quarter of 2017 compared to $7.5 million for the fourth quarter of 2016.

For the full year ended December 31, 2017, Limelight reported revenue of $184.4 million, an increase of 10% compared to $168.2 million for the year ended December 31, 2016. Currency negatively impacted full year revenue by $0.4 million.

Gross margin was 47.6% for the year ended December 31, 2017, an increase of 520 basis points compared to 42.4% for the year ended December 31, 2016.

Limelight reported a net loss of $7.6 million, or $0.07 per basic share, for the year ended December 31, 2017, compared to a net loss of $73.9 million, or $0.71 per basic share, in 2016. The full year 2016 net loss includes a $54.0 million provision for litigation related to the settlement and license agreement with Akamai.

Non-GAAP net income was $10.6 million, or $0.10 per basic share, for the year ended December 31, 2017, compared to a non-GAAP net income of $0.8 million, or $0.01 per basic share, in 2016.

EBITDA was $12.4 million for the year ended December 31, 2017, compared to negative $51.9 million for the year ended December 31, 2016. Adjusted EBITDA was $30.7 million for the year ended December 31, 2017, compared to $22.8 million for the year ended December 31, 2016.

Limelight ended the fourth quarter with 533 employees and employee equivalents, down from 535 at the end of the third quarter of 2017, and up from 510 at the end of 2016.

Commenting on the fourth quarter and full year results, Chief Executive Officer, Robert Lento said, "Limelight’s results in the latest quarter capped a year of consistent and robust operational and financial improvements. We’re gratified that Limelight’s investors have been rewarded with a second consecutive year of shareholder returns in excess of 70 percent, and our customer satisfaction (measured by Net Promoter Score) and employee satisfaction have both achieved record highs."

"Limelight’s strong business momentum and robust network performance lay a solid foundation for our business, and we believe this increasingly differentiates Limelight’s value proposition from that of our competitors. As we enter 2018, we expect that our talented, creative, and motivated employees, our dynamic technology platform, and our laser focus on harvesting edge services opportunities will further elevate Limelight’s future revenue and profit growth. For these reasons, we have provided 2018 guidance that builds on the strong 2017 performance."

Based on current conditions, Limelight is confirming the following guidance for 2018:

-- Revenue between $196 million and $200 million,

-- GAAP gross margin expansion greater than 100 basis points over 2017,

-- Non-GAAP earnings per share between $0.11 and $0.15 per share,

-- Adjusted EBITDA between $32 million and $36 million, and

-- Capital expenditures between $22 million and $24 million dollars.

Financial Tables

 
                                                                                                                                   LIMELIGHT NETWORKS, INC.
                                                                                                                             CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                             (In thousands, except per share data)
 
 
                                                                                           December 31,                                         September 30,                                        December 31,
                                                                                               2017                              2017                              2016    
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                               (Unaudited)                                                             (Unaudited)
                                ASSETS
Current assets:
  Cash and cash equivalents                                                                                   $   20,912                                                              $   20,744                                                              $   21,734
  Marketable securities                                                                                           28,404                                                                  36,948                                                                  44,453
  Accounts receivable, net                                                                                        32,381                                                                  28,712                                                                  27,418
  Income taxes receivable                                                                                             98                                                                     102                                                                     125
  Prepaid expenses and other current assets                                                     5,397                             4,453                             4,865  
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total current assets                                                                                              87,192                                                                  90,959                                                                  98,595
Property and equipment, net                                                                                       28,991                                                                  29,835                                                                  30,352
Marketable securities, less current portion                                                                           40                                                                      40                                                                      40
Deferred income taxes                                                                                              1,506                                                                   1,393                                                                   1,105
Goodwill                                                                                                          77,054                                                                  76,925                                                                  76,243
Other assets                                                                                    1,665                             1,794                             1,794  
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total assets                                                                                                  $  196,448                                           $  200,946                                           $  208,129  
                                                                                           ==================== ======== ====================                      ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                                                            
                 LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
  Accounts payable                                                                                            $    4,439                                                              $    8,804                                                              $    8,790
  Deferred revenue                                                                                                 1,187                                                                   1,694                                                                   2,138
  Income taxes payable                                                                                               452                                                                     383                                                                     188
  Provision for litigation                                                                                        18,000                                                                  18,000                                                                  18,000
  Other current liabilities                                                                    18,507                            15,665                            12,836  
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total current liabilities                                                                                         42,585                                                                  44,546                                                                  41,952
Deferred income taxes                                                                                                144                                                                     146                                                                     152
Deferred revenue, less current portion                                                                                16                                                                      15                                                                      22
Provision for litigation, less current portion                                                                     9,000                                                                  13,500                                                                  27,000
Other long-term liabilities                                                                       558                               859                             1,435  
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total liabilities                                                                                                 52,303                                                                  59,066                                                                  70,561
Commitments and contingencies
Stockholders’ equity:
  Convertible preferred stock, $0.001 par value; 7,500 shares                                                          -                                                                       -                                                                       -
  authorized; no shares issued and outstanding
                                                                                                                     111                                                                     110                                                                     107
  Common stock, $0.001 par value; 300,000 shares authorized; 110,824,
  109,638 and 107,059 shares issued and outstanding at December 31,
  2017, September 30, 2017 and December 31, 2016, respectively
  Additional paid-in capital                                                                                     502,312                                                                 499,487                                                                 490,819
  Accumulated other comprehensive loss                                                                            (8,328 )                                                                (8,679 )                                                               (11,038 )
  Accumulated deficit                                                                        (349,950 )                                           (349,038 )                                           (342,320 )
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total stockholders’ equity                                                                    144,145                           141,880                           137,568  
                                                                                           -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total liabilities and stockholders’ equity                                                                    $  196,448                                           $  200,946                                           $  208,129  
                                                                                           ==================== ======== ====================                      ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                     LIMELIGHT NETWORKS, INC.
                                                                                                                                                                                                                                     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                                     (In thousands, except per share data)
                                                                                                                                                                                                                                     (Unaudited)
 
 
                                                                                                                                                                                                  Three Months Ended                                                                                                                                                                                                                     Twelve Months Ended
                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                               December 31,                                                           September 30,                                        Percent                                                             December 31,                                         Percent                                                                                  December 31,                                                           December 31,                                               Percent
                                                                                2017                             2017                          Change                            2016                          Change                                                 2017                             2016                                Change
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      ------- --------------------                      -------------------- ------- --------------------                      ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------                      ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Revenues                                                                                       $  48,186                                           $  46,069                              5 %                                                            $  43,778                             10 %                                                                                 $ 184,360                                           $ 168,234                                10 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
Cost of revenue:
  Cost of services (1)                                                                            20,665                                                                 19,287                                                 7 %                                                               19,642                                                 5 %                                                                                    78,423                                                                 78,857                                                   -1 %
  Depreciation - network                                                        4,544                            4,506                              1 %                                             4,474                              2 %                                                                 18,138                           18,032                                 1 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
Total cost of revenue                                                          25,209                           23,793                              6 %                                            24,116                              5 %                                                                 96,561                           96,889                                 0 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
Gross profit                                                                                      22,977                                                                 22,276                                                 3 %                                                               19,662                                                17 %                                                                                    87,799                                                                 71,345                                                   23 %
Gross profit percentage                                                                             47.7 %                                                                 48.4 %                                                                                                                   44.9 %                                                                                                                                        47.6 %                                                                 42.4 %
Operating expenses:
  General and administrative (1)                                                                   8,656                                                                  8,079                                                 7 %                                                                7,960                                                 9 %                                                                                    32,053                                                                 30,042                                                    7 %
  Sales and marketing (1)                                                                          8,997                                                                  8,836                                                 2 %                                                                8,215                                                10 %                                                                                    36,098                                                                 32,945                                                   10 %
  Research & development (1)                                                                       5,965                                                                  6,443                                                -7 %                                                                6,094                                                -2 %                                                                                    25,342                                                                 24,335                                                    4 %
  Depreciation and amortization                                                                      587                                                                    603                                                -3 %                                                                  590                                                -1 %                                                                                     2,376                                                                  2,452                                                   -3 %
  Provision for litigation                                                          -                                -                             NA                                                   -                             NA                                                                        -                           54,000                                NM
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
Total operating expenses                                                       24,205                           23,961                              1 %                                            22,859                              6 %                                                                 95,869                          143,774                               -33 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Operating loss                                                                                    (1,228 )                                                               (1,685 )                                             -27 %                                                               (3,197 )                                             -62 %                                                                                    (8,070 )                                                              (72,429 )                                                -89 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Other income (expense):
  Interest expense                                                                                   (38 )                                                                  (18 )                                             111 %                                                                  (54 )                                             -30 %                                                                                       (80 )                                                                 (918 )                                                 NM
  Interest income                                                                                    128                                                                    127                                                NM                                                                    101                                                27 %                                                                                       494                                                                    123                                                  302 %
  Other, net                                                                      204                                8                           2450 %                                              (570 )                                            -136 %                                                                    452                              (98 )                                               -561 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
Total other income (expense)                                                      294                              117                            151 %                                              (523 )                                            -156 %                                                                    866                             (893 )                                               -197 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Loss before income taxes                                                                            (934 )                                                               (1,568 )                                             -40 %                                                               (3,720 )                                             -75 %                                                                                    (7,204 )                                                              (73,322 )                                                -90 %
Income tax expense                                                                (22 )                                               188                           -112 %                                               199                           -111 %                                                                    426                              603                               -29 %
                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                                                                        -------------------- ------- --------------------                                                                                             -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Net loss                                                                         (912 )                                            (1,756 )                                             -48 %                                            (3,919 )                                             -77 %                                                                 (7,630 )                                           (73,925 )                                                -90 %
                                                                            ==================== ======= ====================                      ==================== ======= ====================                                                                        ==================== ======= ====================                                                                                             ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Net loss per share:
    Basic and diluted                                                                          $   (0.01 )                                                            $   (0.02 )                                                                                                              $   (0.04 )                                                                                                                                   $   (0.07 )                                                            $   (0.71 )
                                                                            ==================== ======= ====================                      ==================== ======= ====================                                                                        ==================== ======= ====================                                                                                             ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Weighted average shares used in per share calculation:
  Basic and diluted                                                                              110,128                                                                109,342                                                                                                                  105,942                                                                                                                                       108,814                                                                104,350
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
(1) Includes share-based compensation (see supplemental table for
figures)
 
 
                                                                                                                                                                                                              LIMELIGHT NETWORKS, INC.
                                                                                                                                                                                                             SUPPLEMENTAL FINANCIAL DATA
                                                                                                                                                                                                                   (In thousands)
                                                                                                                                                                                                                     (Unaudited)
 
 
                                                                                                                                                        Three Months Ended                                                                                                                                             Twelve Months Ended
                                                                                      ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                          
                                                                                                        December 31,                                                          September 30,                                                         December 31,                                                                                December 31,                                                          December 31,
                                                                                         2017                            2017                            2016                                                  2017                            2016   
                                                                                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                                           -------------------- ------- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                     
Share-based compensation:
                                                                                                                                                                                                                                                                                                                                                                                                     
Cost of services                                                                                         $    375                                                              $    352                                                              $    375                                                                                   $   1,450                                                              $  1,493
General and administrative                                                                                  1,729                                                                 1,565                                                                 1,951                                                                                       6,502                                                                 7,070
Sales and marketing                                                                                           622                                                                   611                                                                   776                                                                                       2,470                                                                 2,792
Research and development                                                                   576                             584                             581                                                 2,322                           2,104  
                                                                                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                                           -------------------- ------- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                     
Total share-based compensation                                                                           $  3,302                                           $  3,112                                           $  3,683                                                                $  12,744                                           $ 13,459  
                                                                                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                                           ==================== ======= ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
Depreciation and amortization:
                                                                                                                                                                                                                                                                                                                                                                                                     
Network-related depreciation                                                                             $  4,544                                                              $  4,506                                                              $  4,474                                                                                   $  18,138                                                              $ 18,032
Other depreciation and amortization                                                                           587                                                                   603                                                                   590                                                                                       2,376                                                                 2,438
Amortization of intangible assets                                                            -                               -                               -                                                     -                              14  
                                                                                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                                           -------------------- ------- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                     
Total depreciation and amortization                                                                      $  5,131                                           $  5,109                                           $  5,064                                                                $  20,514                                           $ 20,484  
                                                                                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                                           ==================== ======= ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                     
Net increase (decrease) in cash, cash equivalents and marketable                                         $ (8,376 )                                                            $ (2,904 )                                                            $ (8,213 )                                                                                 $ (16,871 )                                                            $ (6,815 )
securities:
                                                                                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                                           ==================== ======= ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                     
End of period statistics:
                                                                                                                                                                                                                                                                                                                                                                                                     
Approximate number of active customers                                                                        717                                                                   753                                                                   851                                                                                         717                                                                   851
                                                                                                                                                                                                                                                                                                                                                                                                     
Number of employees and employee equivalents                                                                  533                                                                   535                                                                   510                                                                                         533                                                                   510
                                                                                                                                                                                                                                                                                                                                                                                                     
 
                                                                                                                                                                                                                                     LIMELIGHT NETWORKS, INC.
                                                                                                                                                                                                                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                                                                                     (In thousands)
                                                                                                                                                                                                                                     (Unaudited)
 
 
                                                                                                                                                                          Three Months Ended                                                                                                                                             Twelve Months Ended
                                                                                                                                             ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                               December 31,                                                          September 30,                                                          December 31,                                                                                December 31,                                                           December 31,
                                                                                                                                                2017                            2017                             2016                                                  2017                             2016   
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Operating activities
                     Net loss                                                                                                                                   $   (912 )                                                            $ (1,756 )                                                            $  (3,919 )                                                                                 $  (7,630 )                                                            $ (73,925 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                     Adjustments to reconcile net loss to net cash provided by (used in)
                     operating activities:
                                                       Depreciation and amortization                                                                               5,131                                                                 5,109                                                                  5,064                                                                                      20,514                                                                 20,484
                                                       Share-based compensation                                                                                    3,302                                                                 3,112                                                                  3,683                                                                                      12,744                                                                 13,459
                                                       Accrual of provision for litigation                                                                             -                                                                     -                                                                      -                                                                                           -                                                                 54,000
                                                       Foreign currency remeasurement loss                                                                           140                                                                    79                                                                     76                                                                                         798                                                                    585
                                                       Deferred income taxes                                                                                        (108 )                                                                 (73 )                                                                  195                                                                                        (325 )                                                                  170
                                                       Gain on sale of property and equipment                                                                       (316 )                                                                  (2 )                                                                 (218 )                                                                                      (410 )                                                                 (514 )
                                                       Accounts receivable charges                                                                                   217                                                                   242                                                                    101                                                                                         949                                                                    137
                                                       Amortization of premium on marketable securities                                                               55                                                                    65                                                                     48                                                                                         283                                                                     67
                                                       Realized loss on sale of marketable securities                                                                  -                                                                     -                                                                      -                                                                                           -                                                                     32
                                                       Changes in operating assets and liabilities:
                                                         Accounts receivable                                                                                      (3,886 )                                                                (800 )                                                               (4,661 )                                                                                    (5,912 )                                                                 (760 )
                                                         Prepaid expenses and other current assets                                                                  (887 )                                                                (322 )                                                                  315                                                                                        (342 )                                                                4,648
                                                         Income taxes receivable                                                                                       4                                                                    13                                                                    (15 )                                                                                        38                                                                     39
                                                         Other assets                                                                                                249                                                                    13                                                                     22                                                                                         270                                                                    580
                                                         Accounts payable and other current liabilities                                                             (730 )                                                               2,048                                                                 (1,087 )                                                                                     4,019                                                                 (1,757 )
                                                         Deferred revenue                                                                                           (507 )                                                                 (47 )                                                                  730                                                                                        (957 )                                                                 (822 )
                                                         Income taxes payable                                                                                         69                                                                    46                                                                     68                                                                                         249                                                                     (8 )
                                                         Payments for provision for litigation                                                                    (4,500 )                                                              (4,500 )                                                               (4,500 )                                                                                   (18,000 )                                                               (9,000 )
                                                         Other long term liabilities                                                             (206 )                                             (202 )                                              (307 )                                                                   (790 )                                              (857 )
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net cash (used in) provided by operating activities                                                                       (2,885 )                                            3,025                           (4,405 )                                                                  5,498                            6,558  
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Investing activities
                                                       Purchases of marketable securities                                                                         (4,547 )                                                              (2,864 )                                                              (45,629 )                                                                                   (14,930 )                                                              (45,629 )
                                                       Sale and maturities of marketable securities                                                               13,012                                                                 3,500                                                                  1,000                                                                                      30,756                                                                 29,315
                                                       Purchases of property and equipment                                                                        (4,919 )                                                              (5,328 )                                                               (4,897 )                                                                                   (20,725 )                                                               (9,563 )
                                                       Proceeds from sale of property and equipment                                                14                               3                              504                                                    97                              504  
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net cash provided by (used in) investing activities                                                                        3,560                          (4,689 )                                           (49,022 )                                                                 (4,802 )                                           (25,373 )
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Financing activities
                                                       Principal payments on capital lease obligations                                                                 -                                                                     -                                                                      -                                                                                           -                                                                 (4,685 )
                                                       Payment of employee tax withholdings related to restricted stock                                           (1,925 )                                                                (655 )                                                                 (676 )                                                                                    (4,496 )                                                               (1,982 )
                                                       vesting
                                                       Proceeds from employee stock plans                                                       1,448                              12                            1,839                                                 2,648                            2,743  
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net cash (used in) provided by financing activities                                                                         (477 )                                             (643 )                                             1,163                                                (1,848 )                                            (3,924 )
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Effect of exchange rate changes on cash and cash equivalents                                                                 (30 )                                               79                             (402 )                                                                    330                             (207 )
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Net increase (decrease) in cash and cash equivalents                                                                                                                 168                                                                (2,228 )                                                              (52,666 )                                                                                      (822 )                                                              (22,946 )
Cash and cash equivalents, beginning of period                                                                                                 20,744                          22,972                           74,400                                                21,734                           44,680  
                                                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Cash and cash equivalents, end of period                                                                                                                        $ 20,912                                           $ 20,744                                           $  21,734                                                                $  20,912                                           $  21,734  
                                                                                                                                             ==================== ====== ====================                      ==================== ====== ====================                      ==================== ======= ====================                                           ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use non-generally accepted accounting principles (Non-GAAP) net income (loss), EBITDA and Adjusted EBITDA as supplemental measures of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income (loss) to be an important indicator of overall business performance. We define Non-GAAP net income (loss) to be U.S. GAAP net income (loss) adjusted to exclude provision for litigation, share-based compensation, litigation expenses and amortization of intangible assets. We believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define EBITDA as U.S. GAAP net income (loss) adjusted to exclude depreciation and amortization, interest expense, interest and other (income) expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude provision for litigation, share-based compensation and litigation expenses. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. Our management uses these Non-GAAP financial measures because, collectively, they provide valuable information on the performance of our on-going operations, excluding non-cash charges, taxes and non-core activities (including interest payments related to financing activities). These measures also enable our management to compare the results of our on-going operations from period to period, and allow management to review the performance of our on-going operations against our peer companies and against other companies in our industry and adjacent industries. We believe these measures also provide similar insights to investors, and enable investors to review our results of operations "through the eyes of management."

Furthermore, our management uses these Non-GAAP financial measures to assist them in making decisions regarding our strategic priorities and areas for future investment and focus.

The terms Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net income (loss), EBITDA and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income (loss), EBITDA and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

-- EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

-- these measures do not reflect changes in, or cash requirements for, our working capital needs;

-- Non-GAAP net income (loss) and Adjusted EBITDA do not reflect the cash requirements necessary for litigation costs, including provision for litigation and litigation expenses;

-- these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;

-- these measures do not reflect income taxes or the cash requirements for any tax payments;

-- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;

-- while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and

-- other companies may calculate Non-GAAP net income (loss), EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income (loss), EBITDA, and Adjusted EBITDA only as supplemental support for management’s analysis of business performance. Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

Limelight is presenting the most directly comparable U.S. GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable U.S. GAAP measures. Per share amounts may not foot due to rounding.

 
                                                                                                                                                                                                                                     LIMELIGHT NETWORKS, INC.
                                                                                                                                                                                                                                     Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income
                                                                                                                                                                                                                                     (In thousands)
                                                                                                                                                                                                                                     (Unaudited)
 
 
                                                                                                                                                                                                                                                       Three Months Ended                                                                                                                                                                                                                                                                                                                              Twelve Months Ended
                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                              December 31, 2017                                                                                                                           September 30, 2017                                                                                                                            December 31, 2016                                                                                                                                                 December 31, 2017                                                                                                                            December 31, 2016
                                                                           -----------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                                Amount                                                               Per Share                                                              Amount                                                                Per Share                                                              Amount                                                                Per Share                                                                Amount                                                                Per Share                                                               Amount                                                                Per Share
                                                                           ------------------------------------------------                     --------------------------------------------------                     -------------------------------------------------                     --------------------------------------------------                     -------------------------------------------------                     --------------------------------------------------                     -------------------- -------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
U.S. GAAP net loss                                                                            $  (912 )                                                            $   (0.01 )                                                            $ (1,756 )                                                            $   (0.02 )                                                            $ (3,919 )                                                            $   (0.04 )                                                                                 $ (7,630 )                                                            $   (0.07 )                                                            $ (73,925 )                                                            $   (0.71 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Provision for litigation                                                                            -                                                                      -                                                                     -                                                                      -                                                                     -                                                                      -                                                                                          -                                                                      -                                                                 54,000                                                                   0.52
Share-based compensation                                                                        3,302                                                                   0.03                                                                 3,112                                                                   0.03                                                                 3,683                                                                   0.03                                                                                     12,744                                                                   0.12                                                                 13,459                                                                   0.13
Litigation expenses                                                                             1,470                                                                   0.01                                                                   863                                                                   0.01                                                                 1,998                                                                   0.02                                                                                      5,518                                                                   0.05                                                                  7,284                                                                   0.07
Amortization of intangible assets                                                -                                -                               -                                -                               -                                -                                                    -                                -                               14                             0.00  
                                                                           -------------------- ----- --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                                           -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Non-GAAP net income                                                                           $ 3,860                                           $    0.04                                           $  2,219                                           $    0.02                                           $  1,762                                           $    0.02                                                                $ 10,632                                           $    0.10                                           $     832                                           $    0.01  
                                                                           ==================== ===== ====================                      ==================== ======= ====================                      ==================== ====== ====================                      ==================== ======= ====================                      ==================== ====== ====================                      ==================== ======= ====================                                           ==================== ====== ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Weighted average shares used in per share calculation                                                                                                                110,128                                                                                                                                      109,342                                                                                                                                      105,942                                                                                                                                                           108,814                                                                                                                                       104,350
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 
                                                                                                                                                                                                 LIMELIGHT NETWORKS, INC.
                                                                                                                                                                             Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
                                                                                                                                                                                                      (In thousands)
                                                                                                                                                                                                        (Unaudited)
 
 
                                                                                                                               Three Months Ended                                                                                                                                            Twelve Months Ended
                                                             --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                               
                                                                               December 31,                                                         September 30,                                                         December 31,                                                                               December 31,                                                           December 31,
                                                                2017                           2017                            2016                                                 2017                             2016   
                                                             -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                                           -------------------- ------ --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                          
U.S. GAAP net loss                                                              $  (912 )                                                            $ (1,756 )                                                            $ (3,919 )                                                                                 $ (7,630 )                                                            $ (73,925 )
                                                                                                                                                                                                                                                                                                                                                                          
    Depreciation and amortization                                                 5,131                                                                 5,109                                                                 5,064                                                                                     20,514                                                                 20,484
    Interest expense                                                                 38                                                                    18                                                                    54                                                                                         80                                                                    918
    Interest and other (income) expense                                            (332 )                                                                (135 )                                                                 469                                                                                       (946 )                                                                  (25 )
    Income tax expense                                           (22 )                                              188                             199                                                  426                              603  
                                                             -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                                           -------------------- ------ --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                          
EBITDA                                                                          $ 3,903                                                              $  3,424                                                              $  1,867                                                                                   $ 12,444                                                              $ (51,945 )
                                                                                                                                                                                                                                                                                                                                                                          
    Provision for litigation                                                          -                                                                     -                                                                     -                                                                                          -                                                                 54,000
    Share-based compensation                                                      3,302                                                                 3,112                                                                 3,683                                                                                     12,744                                                                 13,459
    Litigation expenses                                        1,470                             863                           1,998                                                5,518                            7,284  
                                                             -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                                           -------------------- ------ --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                          
Adjusted EBITDA                                                                 $ 8,675                                           $  7,399                                           $  7,548                                                                $ 30,706                                           $  22,798  
                                                             ==================== ===== ====================                      ==================== ====== ====================                      ==================== ====== ====================                                           ==================== ====== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                          

For future periods, we are unable to provide a reconciliation of EBITDA and Adjusted EBITDA to net loss as a result of the uncertainty regarding, and the potential variability of, the amounts of depreciation and amortization, interest expense, interest and other (income) expense and income tax expense, that may be incurred in the future.

Conference Call

At approximately 4:30 p.m. EST (1:30 p.m. PST) today, management will host a quarterly conference call for investors. Investors can access this call toll-free at 877 296 5190 within the United States or +1 412 317 5233 outside of the U.S. The conference call will also be audio cast live from http://www.limelight.com and a replay will be available following the call from the Limelight website.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding our expectations regarding revenue, gross margin, non-GAAP net income, capital expenditures, litigation, and our future prospects. Our expectations and beliefs regarding these matters may not materialize. The potential risks and uncertainties that could cause actual results or outcomes to differ materially from the results or outcomes predicted include, among other things, reduction of demand for our services from new or existing customers, unforeseen changes in our hiring patterns, adverse outcomes in litigation, and experiencing expenses that exceed our expectations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Forms 10-K and 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online on our investor relations website at investors.limelightnetworks.com and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of February 7, 2018, and we undertake no duty to update this information in light of new information or future events, unless required by law.

About Limelight

Limelight Networks (LLNW ), a global leader in digital content delivery, empowers customers to better engage online audiences by enabling them to securely manage and globally deliver digital content, on any device. The company’s Limelight Orchestrate platform includes a global infrastructure with a fully-integrated suite of capabilities and services that help you address all your content delivery needs. The Orchestrate Platform solves your most important content delivery challenges so you can deliver the next great digital experience anywhere. For more information, please visit www.limelight.com and follow us on Twitter, Facebook and LinkedIn.

Copyright (C) 2018 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180207005911r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180207005911/en/

SOURCE: Limelight Networks, Inc.

Limelight Networks, Inc. 
Sajid Malhotra, 602-850-5778 
ir@llnw.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.