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Press Release

Limelight Networks(TM) Reports First Quarter 2009 Results

Company Release - 5/6/2009 4:00 PM ET

- Revenue of $33.2 million, a 10% increase from first quarter 2008

- Reversal of $66 million accrual due to favorable ruling from Federal District Court of Massachusetts

- Launch of LimelightSITE(TM) with over 150 customers, entry into enterprise and e-commerce sectors

- Addition of approximately 35 net new customers

TEMPE, Ariz., May 6 /PRNewswire-FirstCall/ -- Limelight Networks, Inc. (Nasdaq: LLNW) today reported first quarter 2009 financial results.

"Limelight Networks achieved solid year-over-year revenue growth during the first quarter. We continued to see strong demand for our core content delivery and storage services, and were pleased with the market reception for LimelightSITE and a favorable ruling in our patent litigation with Akamai. We believe that continued Internet adoption presents us with attractive growth opportunities and that our eight years of innovation, our global scale and our network-based architecture are the optimal solution for publishers, enterprises, and governments advancing their online presence," commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

Financial Highlights

For the first quarter of 2009, the company reported revenue of $33.2 million, up 10% percent from $30.2 million in the same period last year, and EBITDA, adjusted for share-based compensation, litigation and the reversal of a previously recorded damage accrual, of $4.7 million.

Non-GAAP net loss, before stock based compensation, litigation costs, and reversal of a previously recorded damage accrual, was $2.1 million or 2 cents per basic share. GAAP net earnings were $55.1 million, or 66 cents per basic share and 64 cents on a fully-diluted basis. These earnings include the reversal of a previously recorded damage accrual of $66 million as a result of the Massachusetts Federal District Court order finding that we do not infringe the Akamai 703 patent.

Capital purchases incurred were $4.6 million. The Company ended the quarter with no bank debt and approximately $162 million in cash and short-term marketable securities. A reconciliation of GAAP to non-GAAP net income is included in the attached tables.

Second-Quarter Outlook

Limelight Networks anticipates second quarter revenue to be in the range of $32.2 million to $33.2 million.

Financial Tables


                            LIMELIGHT NETWORKS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                     (In thousands, except per share data)

                                                   March 31,    December 31,
                                                     2009           2008
                                                     ----           ----
                                                 (Unaudited)
                       ASSETS
    Current Assets:
      Cash and cash equivalents                    $146,791       $138,180
      Marketable securities                          15,197         36,463
      Accounts receivable, net of reserves of
       $8,585 and $7,565 at March 31, 2009
       and December 31, 2008, respectively           34,238         33,482
      Income taxes receivable                           164              7
      Prepaid expenses and other current assets       8,427          7,834
                                                      -----          -----
    Total current assets                            204,817        215,966
    Property and equipment, net                      37,721         40,185
    Marketable securities, less current portion           8             13
    Other assets                                      4,939            628
                                                      -----            ---
    Total assets                                   $247,485       $256,792
                                                   ========       ========

        LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
      Accounts payable                              $11,770         $8,920
      Deferred revenue, current portion              10,328          9,865
      Provision for litigation                            -         65,645
      Other current liabilities                       9,785         14,928
                                                      -----         ------
    Total current liabilities                        31,883         99,358
    Deferred revenue, less current portion            6,018          7,303
                                                      -----          -----
    Total liabilities                                37,901        106,661
    Commitments and contingencies                         -              -
    Stockholders' equity:
      Convertible preferred stock, $0.001 par
       value; 7,500 shares authorized; 0
       shares issued and outstanding                      -              -
      Common stock, $0.001 par value; 150,000
       shares authorized; 83,792 and 83,405
       shares issued and outstanding at
       March 31, 2009 and December 31, 2008,
       respectively                                      84             83
      Additional paid-in capital                    295,155        290,593
      Accumulated other comprehensive income             15            260
      Accumulated deficit                           (85,670)      (140,805)
                                                    -------       --------
    Total stockholders' equity                      209,584        150,131
                                                    -------        -------
    Total liabilities and stockholders' equity     $247,485       $256,792
                                                   ========       ========



                            LIMELIGHT NETWORKS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)
                                   (Unaudited)


                                             Three Months Ended
                                             ------------------
                                    March    December    March    December
                                     31,        31,        31,        31,
                                    2009       2008       2008       2007
                                    ----       ----       ----       ----

    Revenue                        $33,175    $35,898    $30,202    $29,132
    Costs and operating expenses
      Cost of revenue  *  +         21,471     21,881     20,672     18,435
      General and
       administrative  *  +         12,444     15,550     13,329      7,961
      Sales and marketing  *         8,139      9,231      8,142      8,619
      Research & development  *      1,910      2,072      1,590      1,385
      Provision for litigation     (65,645)     1,295      7,134     48,130
                                   -------      -----      -----     ------
    Total costs and operating
     expenses                      (21,681)    50,029     50,867     84,530

    Operating income (loss)         54,856    (14,131)   (20,665)   (55,398)

    Interest expense                   (11)       (11)       (21)        (6)
    Interest income                    383        669      1,891      2,035
    Other income (expense)             227       (375)       170       (177)
                                       ---       ----        ---       ----

    Income (loss) before taxes      55,455    (13,848)   (18,625)   (53,546)
    Income tax expense (benefit)       320         94       (183)     1,799
                                       ---        ---       ----      -----

    Net income (loss)              $55,135   $(13,942)  $(18,442)  $(55,345)
                                   =======   ========   ========   ========

    Net income (loss) per share:
      Basic                          $0.66     $(0.17)    $(0.22)    $(0.67)
      Diluted                        $0.64     $(0.17)    $(0.22)    $(0.67)

    Shares used in per share
     calculations:
      Basic                         83,515     83,192     82,623     82,140
      Diluted                       85,968     83,192     82,623     82,140


    * Includes share-based compensation (see supplemental table for figures)

    + Includes depreciation (see supplemental table for figures)



                            LIMELIGHT NETWORKS, INC.
                          SUPPLEMENTAL FINANCIAL DATA
                                 (In thousands)
                                  (Unaudited)

                                             Three Months Ended
                                             ------------------
                                    March     December    March     December
                                      31,        31,        31,        31,
                                     2009       2008       2008       2007
                                     ----       ----       ----       ----
    Supplemental financial data
     (in thousands):

    Share-based compensation:

    Cost of revenues                  $551       $585       $507       $479
    General and administrative       2,131      3,028      1,665      1,454
    Sales and marketing              1,189      1,262      1,306      1,272
    Research and development           616        633        482        420
                                       ---        ---        ---        ---

    Total share-based compensation  $4,487     $5,508     $3,960     $3,625
                                    ======     ======     ======     ======

    Depreciation and amortization:

    Network-related depreciation    $6,548     $6,862     $6,013     $5,429
    Other depreciation                 540        455        247        278
                                       ---        ---        ---        ---

    Total depreciation and
     amortization                   $7,088     $7,317     $6,260     $5,707
                                    ======     ======     ======     ======

    Capital expenditures:

    Capital expenditures
     (cash and accrual)             $4,572     $5,151     $3,095     $5,136
                                    ======     ======     ======     ======

    Net (decrease) increase in
     cash, cash equivalents
     and marketable securities    $(12,660)   $(2,015)   $(2,475)    $3,032
                                  ========    =======    =======     ======

    End of period statistics:

    Approximate number of active
     customers                       1,365      1,336      1,232      1,157
    Number of employees                296        294        244        237



                             LIMELIGHT NETWORKS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In thousands)
                                    (Unaudited)

                                              Three Months Ended
                                              ------------------
                                    March     December    March     December
                                      31,        31,        31,        31,
                                     2009       2008       2008       2007
                                     ----       ----       ----       ----
    Cash flows from operating
     activities:
     Net income (loss)              $55,135   $(13,942)  $(18,442)  $(55,345)
     Adjustments to reconcile
      net loss to net cash
      (used in) provided by
      operating activities:
        Depreciation and
         amortization                 7,088      7,317      6,260      5,707
        Share-based compensation      4,487      5,508      3,960      3,625
        Deferred income tax
         (benefit) expense                -         (9)      (234)        33
        Excess tax benefit
         related to stock option
         exercises                        -        177          -     (1,596)
        Provision for litigation    (65,645)     1,295      7,134     48,130
        (Income) loss on foreign
         currency exchange              (31)      (149)         -         42
        Accounts receivable
         charges                      3,288      3,961      1,562      2,268
        Accretion of debt discount        -          -          -          -
        Accretion of marketable
         securities                       -         (6)      (453)      (530)
        Loss on marketable
         securities                       -          -         55        387
        Changes in operating
         assets and liabilities:
          Accounts receivable        (3,840)    (6,169)    (2,271)    (5,243)
          Prepaid expenses and
           other current assets        (593)     1,695         87      1,037
          Income taxes receivable      (157)     1,480        594      2,742
          Other assets               (4,311)        32        564         11
          Accounts payable           (1,223)      (531)    (4,634)     3,613
          Accounts payable,
           related parties                -          -        (80)       230
          Deferred revenue             (822)       416        301        135
          Other current liabilities  (5,144)       718      5,035     (4,449)
          Other long term
           liabilities                    -       (770)         1        740
                                        ---       ----        ---        ---
     Net cash (used in) provided by
      operating activities          (11,768)     1,023       (561)     1,537
                                    -------      -----       ----      -----

    Cash flows from investing
     activities:
        Purchases of property
         and equipment                 (754)    (3,537)    (2,435)    (2,081)
        Purchase of marketable
         securities                       -          -    (34,725)    20,300
        Sale of marketable
         securities                  21,300     17,125     44,200    (37,569)
     Net cash provided by (used
      in) investing activities       20,546     13,588      7,040    (19,350)
                                     ------     ------      -----    -------

    Cash flows from financing
     activities:
        Escrow funds returned
         from share repurchase            -          -          -      1,190
        Tax benefits from share-
         based compensation               -       (177)         -          -
        Excess tax benefit
         related to stock option
         exercises                        -          -          -      1,573
        Proceeds from exercise
         of stock options and
         warrants                        76         34        107        175
        Proceeds from initial
         public offering, net of
         issuance costs                   -          -          -        (47)
                                        ---        ---        ---        ---
     Net cash provided by (used
      in) financing activities           76       (143)       107      2,891
                                        ---       ----        ---      -----
     Effect of exchange rate
      changes on cash and cash
      equivalents                      (243)       566       (156)        (4)
                                       ----        ---       ----        ---
    Net increase (decrease) in cash
     and cash equivalents             8,611     15,034      6,430    (14,926)
    Cash and cash equivalents,
     beginning of period            138,180    123,146    113,824    128,750
                                    -------    -------    -------    -------
    Cash and cash equivalents,
     end of period                 $146,791   $138,180   $120,254   $113,824
                                   ========   ========   ========   ========

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors' use of operating performance comparisons from period to period.

The terms Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are not defined under U.S. generally accepted accounting principles, or 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, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs 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 EBITDA adjusted for share-based compensation and litigation
        and damage costs do not reflect our cash expenditures or future
        requirements for capital expenditures or contractual commitments;
    --  they do not reflect changes in, or cash requirements for, our working
        capital needs;
    --  they do not reflect the cash requirements necessary for litigation
        costs;
    --  they do not reflect the interest expense, or the cash requirements
        necessary to service interest or principal payments, on our debt;
    --  they 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 EBITDA adjusted for share-based compensation and
        litigation and damage costs 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 EBITDA and EBITDA adjusted for share-based
        compensation and litigation and damage costs differently than we do,
        limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP Net Income and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management's analysis of business performance. Non-GAAP Net Income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures


                            LIMELIGHT NETWORKS, INC.
     Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
                                 (In thousands)
                                   (Unaudited)

                                             Three Months Ended
                                             ------------------
                                   March     December    March     December
                                     31,        31,        31,        31,
                                    2009       2008       2008       2007
                                    ----       ----       ----       ----

    GAAP net income (loss)         $55,135   $(13,942)  $(18,442)  $(55,345)

    Deferred revenue                     -          -          -        729
    Deferred cost of traffic and
     services                            -          -          -         21
    Provision for litigation       (65,645)     1,295      7,134     48,130
    Share-based compensation         4,487      5,508      3,960      3,625
    Litigation defense expenses      3,945      4,576      5,366      2,772
                                     -----      -----      -----      -----

    Non-GAAP net loss              $(2,078)   $(2,563)   $(1,982)      $(68)
                                   =======    =======    =======       ====



                              LIMELIGHT NETWORKS, INC.
            Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
       Adjusted for Share-Based Compensation and Litigation and Damage Costs
                                   (In thousands)
                                    (Unaudited)

                                              Three Months Ended
                                              ------------------
                                    March     December    March     December
                                      31,        31,        31,        31,
                                     2009       2008       2008       2007
                                     ----       ----       ----       ----

    GAAP net income (loss)          $55,135   $(13,942)  $(18,442)  $(55,345)

      Add: depreciation and
       amortization                   7,088      7,317      6,260      5,707
      Add: interest expense              11         11         21          6
      Less: interest and other income  (610)      (294)    (2,062)    (1,858)
      Plus income tax (benefit)
       expense                          320         94       (183)     1,799
                                        ---        ---       ----      -----
    EBITDA                           61,944     (6,814)   (14,406)   (49,691)

      Add: provision for litigation (65,645)     1,295      7,134     48,130
      Add: share-based compensation   4,487      5,508      3,960      3,625
      Add: litigation defense
       expenses                       3,945      4,576      5,366      2,772
                                      -----      -----      -----      -----

    EBITDA adjusted for share-based
     compensation, litigation
     and damage costs                $4,731     $4,565     $2,054     $4,836
                                     ======     ======     ======     ======

Conference Call

Management will host a quarterly conference call for investors today beginning at 4:30 p.m. EDT (1:30 p.m. PDT). This call can be accessed toll-free at 1-866-362-4832 within the United States or 1-617.597.5364 outside of the U.S. using Participant Passcode 68176220. The conference call will also be audiocast live from http://www.llnw.com and a replay will be available following the call from the Company's website.

Safe-Harbor Statement

This press release contains forward-looking statements concerning, among other things, the outlook for the Company's revenues, net loss and stock-based compensation expense for the first quarter of 2009, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements and litigation and related expenses. Forward-looking statements are not guarantees and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks and uncertainties discussed in the Company's Annual Report on Form 10K and other filings with the Securities and Exchange Commission and the final review of the results and amendments and preparation of quarterly financial statements, including consultation with our outside auditors. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason.

About Limelight Networks, Inc.

Limelight Networks, Inc. (Nasdaq: LLNW) is trusted by the world's most innovative enterprise, entertainment, technology, and software brands to improve the performance and profitability of web sites and end-user experiences. Our scalable, on-demand managed infrastructure solutions provide global reach and consistently high availability, by routing traffic over a private fiber-optic backbone rather than through the often-congested, unpredictable public Internet. For more information, visit our web site (http://www.limelightnetworks.com), read our blog (http://blog.llnw.com), or follow @llnw on Twitter.

Copyright (C) 2009 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners

SOURCE Limelight Networks, Inc.

Contact: Paul Alfieri of Limelight Networks, Inc., +1-917-297-4241, palfieri@llnw.com

Media Contacts

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smilmore@llnw.com
or
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dhohler@llnw.com

Investor Contact

ir@llnw.com

Limelight Networks, Inc.

222 S. Mill Ave.
Tempe AZ 85281
602-850-5000
limelight.com

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