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Press Release

Limelight Networks(R) Reports First Quarter 2010 Results

Company Release - 5/6/2010 4:00 PM ET

TEMPE, AZ -- (MARKET WIRE) -- 05/06/10 -- Limelight Networks, Inc. (NASDAQ: LLNW) today reported first quarter 2010 financial results. Highlights included:

--  Revenue of $36 million and gross margins of 42%

--  Spring 2010 Release of Limelight SITE, offering expanded solutions
    for enterprise web site and dynamic content acceleration

--  Continued growth of Mobility and Monetization solutions

--  Completed the acquisition of EyeWonder, Inc., a leading rich media
    ad serving vendor, after the close of the quarter

"We are pleased with Limelight Networks' first quarter results and our prospects for the second quarter and full year 2010. The investments we have made in higher value cloud services such as mobility, monetization, and web site acceleration are paying off with deeper customer relationships, revenue growth, and gross margin and EBITDA expansion. Now together with EyeWonder, Limelight Networks is well-positioned to grow as content consumption, marketing dollars and e-commerce activity continue to shift online and onto mobile devices, and as more enterprises look to outsource computing and storage resources to innovative service providers," said Jeff Lunsford, chairman and chief executive officer.

Financial Highlights

For the first quarter of 2010, the company reported revenue of $36 million, up 9 percent from first quarter 2009 and up 7 percent sequentially. The company also reported EBITDA, adjusted for share-based compensation, litigation expenses, and acquisition-related expenses, of $5.1 million and a non-GAAP net loss, before share-based compensation, litigation expenses, and acquisition-related expenses, of 1 cent per basic share. GAAP net loss was $5.8 million, or 7 cents per basic share.

Capital investments were $4.3 million. The Company ended the quarter with no bank debt and approximately $149 million in cash and short-term marketable securities. A reconciliation of GAAP to non-GAAP net income is included in the below tables.

Second Quarter 2010 Outlook

Limelight Networks anticipates second quarter revenue to be in the range of $41 million to $43 million, including two months of contribution from EyeWonder.

Financial Tables

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


                                              March 31,      December 31,
                                                 2010            2009
                                            --------------  --------------
                                              (Unaudited)
                    ASSETS
Current Assets:
  Cash and cash equivalents                 $       95,295  $       89,509
  Marketable securities                             53,557          64,870
  Accounts receivable, net of reserves of
   $9,667 and $9,226 at March 31, 2010 and
   December 31, 2009, respectively                  25,828          26,363
  Income taxes receivable                              623             617
  Prepaid expenses and other current assets          8,919           9,654
                                            --------------  --------------
Total current assets                               184,222         191,013
Property and equipment, net                         35,776          35,524
Marketable securities                                    8              12
Goodwill                                             1,895             619
Other intangible assets, net                         4,291             370
Other assets                                         8,299           8,132
                                            --------------  --------------
Total assets                                $      234,491  $      235,670
                                            ==============  ==============

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                          $        6,860  $        5,144
  Deferred revenue, current portion                 10,650          12,199
  Other current liabilities                         15,495          14,140
                                            --------------  --------------
Total current liabilities                           33,005          31,483
Deferred revenue, less current portion                   -           1,377
Deferred income tax, less current portion               14              10
                                            --------------  --------------
Total liabilities                                   33,019          32,870
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; 85,228 and 85,011
   shares issued and
   outstanding at March 31, 2010 and
   December 31, 2009, respectively                      85              85
  Additional paid-in capital                       313,217         308,537
  Accumulated other comprehensive (loss)
   income                                             (131)             93
  Accumulated deficit                             (111,699)       (105,915)
                                            --------------  --------------
Total stockholders' equity                         201,472         202,800
                                            --------------  --------------
Total liabilities and stockholders' equity  $      234,491  $      235,670
                                            ==============  ==============




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



                                      Three Months Ended
                    ------------------------------------------------------
                      March 31,   December 31,    March 31,   December 31,
                        2010          2009          2009          2008
                    ------------  ------------  ------------  ------------
Revenue             $     36,087  $     33,625  $     33,175  $     35,898
Costs and operating
 expenses
  Cost of revenue * +     20,983        22,167        21,471        21,881
  General and
   administrative * +      8,893        10,066        12,444        15,550
  Sales and
   marketing *             9,387         8,672         8,139         9,231
  Research &
   development *           2,645         2,059         1,910         2,072
  Provision for
   litigation                  -             -       (65,645)        1,295
                    ------------  ------------  ------------  ------------
Total costs and
 operating expenses       41,908        42,964       (21,681)       50,029

Operating (loss)
 income                   (5,821)       (9,339)       54,856       (14,131)

Interest expense              (1)           (5)          (11)          (11)
Interest income              302           295           383           669
Other income
 (expense)                   (25)         (146)          227          (375)
                    ------------  ------------  ------------  ------------
(Loss) income
 before income
 taxes                    (5,545)       (9,195)       55,455       (13,848)
Income tax expense           240           531           320            94
                    ------------  ------------  ------------  ------------
Net (loss) income   $     (5,785) $     (9,726) $     55,135  $    (13,942)
                    ============  ============  ============  ============

Net (loss) income
 per share:
  Basic             $      (0.07) $      (0.11) $       0.66  $      (0.17)
  Diluted           $      (0.07) $      (0.11) $       0.64  $      (0.17)

Shares used in per
 share
 calculations:
  Basic                   85,119        84,770        83,515        83,192
  Diluted                 85,119        84,770        85,968        83,192


* 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 31,   December 31,    March 31,   December 31,
                        2010          2009          2009          2008
                    ------------  ------------- ------------  ------------
Supplemental
 financial data:
Share-based
 compensation:
Cost of revenues    $        598  $         642 $        551  $        585
General and
 administrative            1,835          1,801        2,131         3,028
Sales and marketing        1,206          1,236        1,189         1,262
Research and
 development                 704            648          616           633
                    ------------  ------------- ------------  ------------
Total share-based
 compensation       $      4,343  $       4,327 $      4,487  $      5,508
                    ============  ============= ============  ============

Depreciation and
 amortization:
Network-related
 depreciation       $      4,778  $       5,352 $      6,548  $      6,862
Other depreciation
 and amortization            766            652          540           455
                    ------------  ------------- ------------  ------------
Total depreciation
 and amortization   $      5,544  $       6,004 $      7,088  $      7,317
                    ============  ============= ============  ============

Capital
 expenditures:
Capital
 expenditures (cash
 and accrual)       $      5,540  $       1,905 $      4,572  $      5,151
                    ============  ============= ============  ============

Net (decrease)
 increase in cash,
 cash equivalents
 and marketable
 securities         $     (5,531) $       1,561 $    (12,660) $     (2,015)
                    ============  ============= ============  ============

End of period
 statistics:
Approximate number
 of active
 customers                 1,370          1,370        1,365         1,336
Number of employees          342            328          296           294





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



                                          Three Months Ended
                            ----------------------------------------------

                            March 31,    December    March 31,   December
                               2010      31, 2009      2009      31, 2008
                            ----------  ----------  ----------  ----------


Cash flows from operating
 activities:
  Net (loss) income         $   (5,785) $   (9,726) $   55,135  $  (13,942)
  Adjustments to reconcile
   net loss to net cash
   provided by (used in)
   operating activities:
      Depreciation and
       amortization              5,544       6,004       7,088       7,317
      Share-based
       compensation              4,343       4,327       4,487       5,508
      Deferred income tax
       (benefit) expense             -           -           -          (9)
      Excess tax shortfalls
       related to stock
       option exercises              -           -           -         177
      Provision for
       litigation                    -           -     (65,645)      1,295
      Loss (gain) on
       foreign exchange             49          20         (31)       (149)
      Loss on sale of
       property and
       equipment                    89           -           -           -
      Accounts receivable
       charges                   1,169         774       3,288       3,961
      Accretion of debt
       discount                      -           -           -           -
      Accretion of
       marketable
       securities                   24          89           -          (6)
      Changes in operating
       assets and
       liabilities:
        Accounts receivable       (305)        555      (3,840)     (6,169)
        Prepaid expenses
         and other current
         assets                    685        (514)       (593)      1,695
        Income taxes
         receivable                (53)       (424)       (157)      1,480
        Other assets              (167)        917      (4,311)         32
        Accounts payable           264          (6)     (1,223)       (531)
        Deferred revenue        (3,105)     (1,506)       (822)        416
        Other current
         liabilities            (2,081)      4,587      (5,144)        718
        Other long term
         liabilities                 -           -           -        (770)
                            ----------  ----------  ----------  ----------
  Net cash provided by
   (used in) operating
   activities                      671       5,097     (11,768)      1,023
                            ----------  ----------  ----------  ----------

Cash flows from investing
 activities:
      Purchases of property
       and equipment            (4,250)     (3,759)       (754)     (3,537)
      Purchase of
       marketable
       securities              (16,755)    (25,500)          -           -
      Sale of marketable
       securities               28,000      10,900      21,300      17,125
      Purchased business,
       chors, net of cash
       acquired                 (2,004)          -           -           -
                            ----------  ----------  ----------  ----------
  Net cash provided by
   (used in) investing
   activities                    4,991     (18,359)     20,546      13,588
                            ----------  ----------  ----------  ----------

Cash flows from financing
 activities:
      Tax benefits from
       share-based
       compensation                  -           -           -        (177)
      Proceeds from
       exercise of stock
       options and warrants         27          34          76          34
      Proceeds from initial
       public offering, net
       of issuance costs             -           -           -           -
                            ----------  ----------  ----------  ----------
  Net cash provided by
   (used in) financing
   activities                       27          34          76        (143)
                            ----------  ----------  ----------  ----------
  Effect of exchange rate
   changes on cash                  97         290        (243)        566
                            ----------  ----------  ----------  ----------
Net increase (decrease) in
 cash and cash equivalents       5,786     (12,938)      8,611      15,034
Cash and cash equivalents,
 beginning of period            89,509     102,447     138,180     123,146
                            ----------  ----------  ----------  ----------
Cash and cash equivalents,
 end of period              $   95,295  $   89,509  $  146,791  $  138,180
                            ==========  ==========  ==========  ==========

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income (loss) and EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses as a supplemental measure 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 because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses, provision for litigation and acquisition related expenses. We define EBITDA as GAAP net income (loss) before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. 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 adjusted for share-based compensation, litigation and damage costs and acquisition related expenses as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses facilitates investors' use of operating performance comparisons from period to period. In addition, it should be noted that our performance-based executive officer bonus structure is tied closely to our performance as measured in part by certain non-GAAP financial measures.

The terms Non-GAAP net income (loss), EBITDA and EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses 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 (loss), EBITDA and EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income (loss), EBITDA and EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses 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, litigation
    and damage costs and acquisition related expenses 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 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, litigation and damage costs and acquisition related
    expenses 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, litigation and damage costs and
    acquisition related expenses 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 (loss) and EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses only as supplemental support for management's analysis of business performance. Non-GAAP Net Income (loss), EBITDA and EBITDA adjusted for share-based compensation, litigation and damage costs and acquisition related expenses 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 31,   December 31,    March 31,   December 31,
                        2010          2009          2009          2008
                    ------------  ------------  ------------  ------------

GAAP net (loss)
 income             $     (5,785) $     (9,726) $     55,135  $    (13,942)

Provision for
 litigation                    -             -       (65,645)        1,295
Share-based
 compensation              4,343         4,327         4,487         5,508
Litigation defense
 expenses                    392           827         3,945         4,576
Acquisition related
 expenses                    604         1,481             -             -
                    ------------  ------------  ------------  ------------

Non-GAAP net loss   $       (446) $     (3,091) $     (2,078) $     (2,563)
                    ============  ============  ============  ============




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



                                      Three Months Ended
                    ------------------------------------------------------
                      March 31,   December 31,    March 31,   December 31,
                        2010          2009          2009          2008
                    ------------  ------------  ------------  ------------

GAAP net (loss)
 income             $     (5,785) $     (9,726) $     55,135  $    (13,942)

  Add:
   depreciation
   and
   amortization            5,544         6,004         7,088         7,317
  Add: interest
   expense                     1             5            11            11
  Less: interest and
   other income             (277)         (149)         (610)         (294)
  Add: income tax
   (benefit)
   expense                   240           531           320            94
                    ------------  ------------  ------------  ------------
EBITDA                      (277)       (3,335)       61,944        (6,814)

  Add: provision
   for litigation              -             -       (65,645)        1,295
  Add: share-based
   compensation            4,343         4,327         4,487         5,508
  Add: litigation
   defense
   expenses                  392           827         3,945         4,576
  Add: acquisition
   related
   expenses                  604         1,481             -             -
                    ------------  ------------  ------------  ------------

EBITDA adjusted for
 share-based
 compensation,
 litigation
 expenses,
 provision for
 litigation and
 acquisition
 expenses           $      5,062  $      3,300  $      4,731  $      4,565
                    ============  ============  ============  ============

Conference Call

At approximately 4:30 p.m. EDT (1:30 p.m. PDT) today, management will host a quarterly conference call. Investors can access this call toll-free at 1-866-700-6293 within the United States or 1-617-213-8835 outside of the U.S., using participant passcode 62014300. The conference call will also be audiocast live from http://www.llnw.com and a replay will be available for one week.

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 expenses, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements, the integration of acquired businesses and litigation and acquisition related expenses. Forward-looking statements represent the current judgment and expectations of Limelight Networks and 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) provides on-demand software, platform, and infrastructure services that help global businesses reach and engage audiences on any mobile or connected device, enabling them to enhance their brand presence, build stronger customer relationships, optimize their advertising, and monetize their digital assets. For more information, please visit http://www.limelightnetworks.com or follow us on Twitter at www.twitter.com/llnw.

Copyright © 2010 Limelight Networks, Inc. All rights reserved. EyeWonder is a trademark of Limelight Networks, Inc. All product or service names are the property of their respective owners

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CONTACT:
Paul Alfieri of Limelight Networks, Inc.
 +1-646-875-8835
palfieri@llnw.com

Media Contacts

Steve Milmore
smilmore@llnw.com
or
Deborah Hohler
dhohler@llnw.com

Investor Contact

ir@llnw.com

Limelight Networks, Inc.

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

Transfer Agent

American Stock Transfer and Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Phone: (800) 937-5449
Fax: (718) 236-4588
E-mail: Info@amstock.com
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