-
Q2 revenue of $43.6 million
-
GAAP gross margin of 43.2%, up 180 basis points versus prior year
-
GAAP EPS of $(0.53), Non-GAAP EPS of $0.01
-
Generated $6.7 million cash
TEMPE, Ariz.--(BUSINESS WIRE)--
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in
digital content delivery, today reported revenue of $43.6 million for
the second quarter ended June 30, 2016, compared to $43.8 million in the
second quarter of 2015.
Gross margin was 43.2% in the second quarter of 2016, an increase of 180
basis points from 41.4% in the second quarter of 2015.
Limelight reported a net loss of $54.9 million, or $0.53 per basic
share, for the second quarter of 2016, compared to a net loss of $6.4
million, or $0.06 per basic share in the second quarter of 2015. The
second quarter of 2016 net loss included a $51 million provision for
litigation related to the Akamai lawsuit. As a result, in July 2016, we
have regained access to $11.8 million of availability under our $25
million secured revolving line of credit.
Non-GAAP net income was $0.6 million or $0.01 per basic share for the
second quarter of 2016, compared to a non-GAAP net loss of $4.1 million,
or $0.04 per basic share in the second quarter of 2015.
EBITDA was negative $49.3 million for the second quarter of 2016,
compared to negative $1.2 million for the second quarter of 2015.
Adjusted EBITDA was $6.2 million for the second quarter of 2016,
compared to $0.9 million for the second quarter of 2015.
During the second quarter of 2016, Limelight generated $6.7 million in
cash.
Limelight ended the second quarter with 512 employees and employee
equivalents, up from 501 employees at the end of the first quarter of
2016, and down from 563 employees in the year ago period.
Commenting on the results, Chief Executive Officer, Robert Lento said,
“This was a milestone quarter in many ways. Our reported revenue
suggests we strengthened our market position. At the same time, we
improved our gross margin, achieved positive non-GAAP net income for the
first time since 2007, and generated almost $7 million in cash from
operations.”
He added, “Our financials, service quality, and performance are much
improved over prior year, and, during the quarter, we entered into
strategic agreements with Neustar and Google, demonstrating growing
trust major corporations are placing in our global capabilities. We
believe we have sufficient cash to invest in our operations, and our
focus is on delighting our customers, strengthening our balance sheet,
generating cash, and building shareholder value.”
We believe the longstanding 703 litigation is largely behind us. In
addition, we are pursuing compensation for unauthorized use of our
intellectual property byAkamai and XO Communications in the
patent infringement case we filed against those companies in the Eastern
District of Virginia back in November 2015.”
Based on current conditions, Limelight expects revenue to grow
year-over-year in the single-digit percentages for the remainder of
2016. Management expects gross margin improvement for the full year of
over 250 basis points, versus 200 basis points previously expected. We
are also raising the lower end of our non-GAAP net income projection to
between break-even and positive $0.05 per share. Capital expenditures
should be $3 million less than prior guidance, and should total less
than $17 million for the full year.
Financial Tables
|
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (In thousands, except per share data) |
|
|
| |
| |
| | | June 30, 2016 | | December 31, 2015 |
| | | (Unaudited) | | |
ASSETS | | | | | |
Current assets:
| | | | | |
Cash and cash equivalents
| | |
$
|
30,885
| | |
$
|
44,680
| |
Restricted cash
| | | |
62,790
| | | |
-
| |
Marketable securities
| | | |
-
| | | |
28,322
| |
Accounts receivable, net
| | | |
24,872
| | | |
26,795
| |
Income taxes receivable
| | | |
135
| | | |
170
| |
Deferred income taxes
| | | |
80
| | | |
89
| |
Prepaid expenses and other current assets
| | |
|
6,278
|
| |
|
9,578
|
|
Total current assets
| | | |
125,040
| | | |
109,634
| |
Property and equipment, net
| | | |
30,647
| | | |
36,143
| |
Marketable securities, less current portion
| | | |
40
| | | |
40
| |
Deferred income taxes, less current portion
| | | |
1,284
| | | |
1,252
| |
Goodwill | | | |
76,242
| | | |
76,143
| |
Other assets
| | |
|
1,903
|
| |
|
2,415
|
|
Total assets
| | |
$
|
235,156
|
| |
$
|
225,627
|
|
| | | | |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | |
Current liabilities:
| | | | | |
Accounts payable
| | |
$
|
7,630
| | |
$
|
9,137
| |
Deferred revenue
| | | |
2,469
| | | |
2,890
| |
Capital lease obligations
| | | |
1,119
| | | |
466
| |
Income taxes payable
| | | |
165
| | | |
204
| |
Provision for litigation
| | | |
50,956
| | | |
-
| |
Other current liabilities
| | |
|
10,391
|
| |
|
10,857
|
|
Total current liabilities
| | | |
72,730
| | | |
23,554
| |
Long-term debt
| | | |
12,790
| | | |
-
| |
Capital lease obligations, less current portion
| | | |
3,008
| | | |
1,436
| |
Deferred income taxes
| | | |
145
| | | |
137
| |
Deferred revenue, less current portion
| | | |
52
| | | |
92
| |
Other long-term liabilities
| | |
|
1,963
|
| |
|
2,311
|
|
Total liabilities
| | | |
90,688
| | | |
27,530
| |
Commitments and contingencies
| | | | | |
Stockholders' equity:
| | | | | |
Convertible preferred stock, $0.001 par value; 7,500 shares
authorized; no shares issued and outstanding
| | | |
-
| | | |
-
| |
Common stock, $0.001 par value; 300,000 shares authorized; 104,653
and 102,299 shares issued and outstanding at June 30, 2016 and
December 31, 2015, respectively
| | | |
104
| | | |
102
| |
Additional paid-in capital
| | | |
483,903
| | | |
477,202
| |
Accumulated other comprehensive loss
| | | |
(10,304
|
)
| | |
(10,812
|
)
|
Accumulated deficit
| | |
|
(329,235
|
)
| |
|
(268,395
|
)
|
Total stockholders' equity
| | |
|
144,468
|
| |
|
198,097
|
|
Total liabilities and stockholders' equity
| | |
$
|
235,156
|
| |
$
|
225,627
|
|
| | | | | | | | |
|
|
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except per share
data) (Unaudited) |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | | | | | | | | | | | | | | |
|
| | | June 30, 2016 | | March 31, 2016 | | Percent Change | | June 30, 2015 | | Percent Change | | June 30, 2016 | | June 30, 2015 | | Percent Change |
| | | | | | | | | | | | | | | | |
|
Revenues
| | |
$
|
43,560
|
| |
$
|
41,422
|
| |
5
|
%
| |
$
|
43,795
|
| |
-1
|
%
| |
$
|
84,982
|
| |
$
|
86,124
|
| |
-1
|
%
|
Cost of revenue:
| | | | | | | | | | | | | | | | | |
Cost of services (1)
| | | |
20,271
| | | |
20,110
| | |
1
|
%
| | |
21,271
| | |
-5
|
%
| | |
40,380
| | | |
42,928
| | |
-6
|
%
|
Depreciation - network
| | |
|
4,489
|
| |
|
4,668
|
| |
-4
|
%
| |
|
4,376
|
| |
3
|
%
| |
|
9,157
|
| |
|
8,528
|
| |
7
|
%
|
Total cost of revenue
| | |
|
24,760
|
| |
|
24,778
|
| |
0
|
%
| |
|
25,647
|
| |
-3
|
%
| |
|
49,537
|
| |
|
51,456
|
| |
-4
|
%
|
Gross profit
| | | |
18,800
| | | |
16,644
| | |
13
|
%
| | |
18,148
| | |
4
|
%
| | |
35,445
| | | |
34,668
| | |
2
|
%
|
Gross profit percentage
| | | |
43.2
|
%
| | |
40.2
|
%
| | | | |
41.4
|
%
| | | | |
41.7
|
%
| | |
40.3
|
%
| | |
Operating expenses:
| | | | | | | | | | | | | | | | | |
General and administrative (1)
| | | |
7,241
| | | |
6,808
| | |
6
|
%
| | |
6,081
| | |
19
|
%
| | |
14,049
| | | |
12,932
| | |
9
|
%
|
Sales and marketing (1)
| | | |
8,117
| | | |
8,903
| | |
-9
|
%
| | |
10,002
| | |
-19
|
%
| | |
17,020
| | | |
20,278
| | |
-16
|
%
|
Research & development (1)
| | | |
6,289
| | | |
6,325
| | |
-1
|
%
| | |
7,646
| | |
-18
|
%
| | |
12,614
| | | |
13,909
| | |
-9
|
%
|
Depreciation and amortization
| | | |
626
| | | |
623
| | |
0
|
%
| | |
635
| | |
-1
|
%
| | |
1,249
| | | |
1,276
| | |
-2
|
%
|
Provision for litigation
| | |
|
50,956
|
| |
|
-
|
| |
NA
| |
|
-
|
| |
NA
| |
|
50,956
|
| |
|
-
|
| |
NA
|
Total operating expenses
| | |
|
73,229
|
| |
|
22,659
|
| |
223
|
%
| |
|
24,364
|
| |
201
|
%
| |
|
95,888
|
| |
|
48,395
|
| |
98
|
%
|
| | | | | | | | | | | | | | | | |
|
Operating loss
| | | |
(54,429
|
)
| | |
(6,015
|
)
| |
805
|
%
| | |
(6,216
|
)
| |
776
|
%
| | |
(60,443
|
)
| | |
(13,727
|
)
| |
340
|
%
|
| | | | | | | | | | | | | | | | |
|
Other income (expense):
| | | | | | | | | | | | | | | | | |
Interest expense
| | | |
(279
|
)
| | |
(179
|
)
| |
56
|
%
| | |
-
| | |
NA
| | |
(459
|
)
| | |
(4
|
)
| |
11375
|
%
|
Interest income
| | | |
8
| | | |
6
| | |
33
|
%
| | |
75
| | |
-89
|
%
| | |
14
| | | |
149
| | |
-91
|
%
|
Other, net
| | |
|
(79
|
)
| |
|
400
|
| |
-120
|
%
| |
|
(131
|
)
| |
-40
|
%
| |
|
321
|
| |
|
1,682
|
| |
-81
|
%
|
Total other income (expense)
| | |
|
(350
|
)
| |
|
227
|
| |
-254
|
%
| |
|
(56
|
)
| |
525
|
%
| |
|
(124
|
)
| |
|
1,827
|
| |
-107
|
%
|
| | | | | | | | | | | | | | | | |
|
Loss before income taxes
| | | |
(54,779
|
)
| | |
(5,788
|
)
| |
846
|
%
| | |
(6,272
|
)
| |
773
|
%
| | |
(60,567
|
)
| | |
(11,900
|
)
| |
409
|
%
|
Income tax expense
| | |
|
115
|
| |
|
158
|
| |
-27
|
%
| |
|
90
|
| |
28
|
%
| |
|
273
|
| |
|
145
|
| |
88
|
%
|
| | | | | | | | | | | | | | | | |
|
Net loss
| | |
|
(54,894
|
)
| |
|
(5,946
|
)
| |
823
|
%
| |
|
(6,362
|
)
| |
763
|
%
| |
|
(60,840
|
)
| |
|
(12,045
|
)
| |
405
|
%
|
| | | | | | | | | | | | | | | | |
|
Net loss per share:
| | | | | | | | | | | | | | | | | |
Basic and diluted
| | |
$
|
(0.53
|
)
| |
$
|
(0.06
|
)
| | | |
$
|
(0.06
|
)
| | | |
$
|
(0.59
|
)
| |
$
|
(0.12
|
)
| | |
| | | | | | | | | | | | | | | | |
|
Weighted average shares used in per share calculation:
| | | | | | | | | | | | | | | | | |
Basic and diluted
| | | |
103,904
| | | |
102,693
| | | | | |
99,841
| | | | | |
103,299
| | | |
99,239
| | | |
| | | | | | | | | | | | | | | | |
|
(1) Includes share-based compensation (see supplemental table for
figures)
|
LIMELIGHT NETWORKS, INC. SUPPLEMENTAL FINANCIAL DATA (In
thousands) (Unaudited) |
|
|
| |
| |
| |
| |
| |
| | | | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | | | | | | | | |
|
| | | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | June 30, 2016 | | June 30, 2015 |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
Share-based compensation: | | | | | | | | | | | |
| | | | | | | | | | |
|
Cost of services
| | |
$
|
436
| |
$
|
473
| | |
$
|
571
| | |
$
|
909
| | |
$
|
1,084
| |
General and administrative
| | | |
1,677
| | |
1,826
| | | |
1,476
| | | |
3,503
| | | |
2,882
| |
Sales and marketing
| | | |
638
| | |
737
| | | |
608
| | | |
1,375
| | | |
1,297
| |
Research and development
| | |
|
542
| |
|
460
|
| |
|
625
|
| |
|
1,002
|
| |
|
1,086
|
|
| | | | | | | | | | |
|
Total share-based compensation
| | |
$
|
3,293
| |
$
|
3,496
|
| |
$
|
3,280
|
| |
$
|
6,789
|
| |
$
|
6,349
|
|
| | | | | | | | | | |
|
Depreciation and amortization: | | | | | | | | | | | |
| | | | | | | | | | |
|
Network-related depreciation
| | |
$
|
4,489
| |
$
|
4,668
| | |
$
|
4,376
| | |
$
|
9,157
| | |
$
|
8,528
| |
Other depreciation and amortization
| | | |
620
| | |
617
| | | |
434
| | | |
1,237
| | | |
877
| |
Amortization of intangible assets
| | |
|
6
| |
|
6
|
| |
|
201
|
| |
|
12
|
| |
|
399
|
|
| | | | | | | | | | |
|
Total depreciation and amortization
| | |
$
|
5,115
| |
$
|
5,291
|
| |
$
|
5,011
|
| |
$
|
10,406
|
| |
$
|
9,804
|
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
Net increase (decrease) in cash, cash equivalents and marketable
securities:
| | |
$
|
6,744
| |
$
|
(48,861
|
)
| |
$
|
(6,027
|
)
| |
$
|
(42,117
|
)
| |
$
|
(18,167
|
)
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
End of period statistics: | | | | | | | | | | | |
| | | | | | | | | | |
|
Approximate number of active customers
| | | |
904
| | |
926
| | | |
1,035
| | | |
904
| | | |
1,035
| |
| | | | | | | | | | |
|
Number of employees and employee equivalents
| | | |
512
| | |
501
| | | |
563
| | | |
512
| | | |
563
| |
| | | | | | | | | | |
|
|
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|
|
| |
| |
| |
| |
| |
| | | | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | | | | | | | | |
|
| | | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | June 30, 2016 | | June 30, 2015 |
| | | | | | | | | | |
|
Operating activities | | | | | | | | | | | |
Net loss
| | |
$
|
(54,894
|
)
| |
$
|
(5,946
|
)
| |
$
|
(6,362
|
)
| |
$
|
(60,840
|
)
| |
$
|
(12,045
|
)
|
| | | | | | | | | | |
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
| | | | | | | | | | | |
Depreciation and amortization
| | | |
5,115
| | | |
5,291
| | | |
5,011
| | | |
10,406
| | | |
9,804
| |
Share-based compensation
| | | |
3,293
| | | |
3,496
| | | |
3,280
| | | |
6,789
| | | |
6,349
| |
Provision for litigation
| | | |
50,956
| | | |
-
| | | |
-
| | | |
50,956
| | | |
-
| |
Foreign currency remeasurement (gain) loss
| | | |
467
| | | |
(301
|
)
| | |
96
| | | |
166
| | | |
(1,595
|
)
|
Deferred income taxes
| | | |
(68
|
)
| | |
82
| | | |
(62
|
)
| | |
14
| | | |
(115
|
)
|
Gain on sale of property and equipment
| | | |
(134
|
)
| | |
-
| | | |
-
| | | |
(134
|
)
| | |
-
| |
Accounts receivable charges (recoveries)
| | | |
83
| | | |
(116
|
)
| | |
224
| | | |
(33
|
)
| | |
470
| |
Amortization of premium on marketable securities
| | | |
-
| | | |
19
| | | |
48
| | | |
19
| | | |
106
| |
Realized loss on marketable securities
| | | |
-
| | | |
32
| | | |
-
| | | |
32
| | | |
-
| |
Changes in operating assets and liabilities:
| | | | | | | | | | | |
Accounts receivable
| | | |
2,497
| | | |
(540
|
)
| | |
(4,312
|
)
| | |
1,957
| | | |
(9,292
|
)
|
Prepaid expenses and other current assets
| | | |
(191
|
)
| | |
3,583
| | | |
(1,352
|
)
| | |
3,392
| | | |
(202
|
)
|
Income taxes receivable
| | | |
51
| | | |
(13
|
)
| | |
13
| | | |
38
| | | |
11
| |
Other assets
| | | |
166
| | | |
342
| | | |
217
| | | |
508
| | | |
1,009
| |
Accounts payable and other current liabilities
| | | |
1,566
| | | |
(4,005
|
)
| | |
3,389
| | | |
(2,439
|
)
| | |
1,666
| |
Deferred revenue
| | | |
(934
|
)
| | |
473
| | | |
520
| | | |
(461
|
)
| | |
317
| |
Income taxes payable
| | | |
72
| | | |
(127
|
)
| | |
52
| | | |
(55
|
)
| | |
-
| |
Other long term liabilities
| | |
|
(1,237
|
)
| |
|
900
|
| |
|
(175
|
)
| |
|
(337
|
)
| |
|
(444
|
)
|
Net cash provided by (used in) operating activities
| | |
|
6,808
|
| |
|
3,170
|
| |
|
587
|
| |
|
9,978
|
| |
|
(3,961
|
)
|
| | | | | | | | | | |
|
Investing activities | | | | | | | | | | | |
Purchases of marketable securities
| | | |
-
| | | |
-
| | | |
(1,965
|
)
| | |
-
| | | |
(11,921
|
)
|
Sale and maturities of marketable securities
| | | |
-
| | | |
28,315
| | | |
1,920
| | | |
28,315
| | | |
11,760
| |
Change in restricted cash
| | | |
-
| | | |
(62,790
|
)
| | |
-
| | | |
(62,790
|
)
| | |
-
| |
Purchases of property and equipment
| | |
|
(259
|
)
| |
|
(1,421
|
)
| |
|
(5,395
|
)
| |
|
(1,680
|
)
| |
|
(12,061
|
)
|
Net cash (used in) provided by investing activities
| | |
|
(259
|
)
| |
|
(35,896
|
)
| |
|
(5,440
|
)
| |
|
(36,155
|
)
| |
|
(12,222
|
)
|
| | | | | | | | | | |
|
Financing activities | | | | | | | | | | | |
Principal payments on capital lease obligations
| | | |
(319
|
)
| | |
(159
|
)
| | |
-
| | | |
(478
|
)
| | |
(358
|
)
|
Payment of employee tax withholdings related to restricted stock
vesting
| | | |
(298
|
)
| | |
(646
|
)
| | |
(837
|
)
| | |
(944
|
)
| | |
(1,944
|
)
|
Cash paid for purchase of common stock
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(957
|
)
|
Proceeds from line of credit
| | | |
-
| | | |
12,790
| | | |
-
| | | |
12,790
| | | |
-
| |
Proceeds from employee stock plans
| | |
|
813
|
| |
|
43
|
| |
|
544
|
| |
|
856
|
| |
|
2,519
|
|
Net cash provided by (used in) financing activities
| | |
|
196
|
| |
|
12,028
|
| |
|
(293
|
)
| |
|
12,224
|
| |
|
(740
|
)
|
Effect of exchange rate changes on cash and cash equivalents
| | |
|
(1
|
)
| |
|
159
|
| |
|
140
|
| |
|
158
|
| |
|
(342
|
)
|
Net increase (decrease) in cash and cash equivalents | | | |
6,744
| | | |
(20,539
|
)
| | |
(5,006
|
)
| | |
(13,795
|
)
| | |
(17,265
|
)
|
Cash and cash equivalents, beginning of period | | |
|
24,141
|
| |
|
44,680
|
| |
|
45,508
|
| |
|
44,680
|
| |
|
57,767
|
|
Cash and cash equivalents, end of period | | |
$
|
30,885
|
| |
$
|
24,141
|
| |
$
|
40,502
|
| |
$
|
30,885
|
| |
$
|
40,502
|
|
| | | | | | | | | | |
|
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 interest and other (income) expense, interest
expense, income tax expense, and depreciation and amortization. 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 (Loss) (In thousands) (Unaudited) |
|
|
| |
| |
| |
| | | |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | | | | | | | | | | | | | | | | | | |
|
| | | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | June 30, 2016 | | June 30, 2015 |
| | | Amount | | Per Share |
| Amount | | Per Share | Amount | | Per Share | | Amount | | Per Share | | Amount | | Per Share |
| | | | | | | | | | | | | | | | | | | | |
|
U.S. GAAP net loss
| | |
$
|
(54,894
|
)
| |
$
|
(0.53
|
)
| |
$
|
(5,946
|
)
| |
$
|
(0.06
|
)
| |
$
|
(6,362
|
)
| |
$
|
(0.06
|
)
| |
$
|
(60,840
|
)
| |
$
|
(0.59
|
)
| |
$
|
(12,045
|
)
| |
$
|
(0.12
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
Provision for litigation
| | | |
50,956
| | | |
0.49
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
50,956
| | | |
0.49
| | | |
-
| | | |
-
| |
Share-based compensation
| | | |
3,293
| | | |
0.03
| | | |
3,496
| | | |
0.03
| | | |
3,280
| | | |
0.03
| | | |
6,789
| | | |
0.07
| | | |
6,349
| | | |
0.06
| |
Litigation expenses
| | | |
1,271
| | | |
0.01
| | | |
1,178
| | | |
0.01
| | | |
(1,174
|
)
| | |
(0.01
|
)
| | |
2,449
| | | |
0.02
| | | |
(1,155
|
)
| | |
(0.01
|
)
|
Amortization of intangible assets
| | |
|
6
|
| |
|
0.00
|
| |
|
6
|
| |
|
0.00
|
| |
|
201
|
| |
|
0.00
|
| |
|
12
|
| |
|
0.00
|
| |
|
399
|
| |
|
0.00
|
|
| | | | | | | | | | | | | | | | | | | | |
|
Non-GAAP net income (loss)
| | |
$
|
632
|
| |
$
|
0.01
|
| |
$
|
(1,266
|
)
| |
$
|
(0.01
|
)
| |
$
|
(4,055
|
)
| |
$
|
(0.04
|
)
| |
$
|
(634
|
)
| |
$
|
(0.01
|
)
| |
$
|
(6,452
|
)
| |
$
|
(0.07
|
)
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
Weighted average shares used in per share calculation
| | | | | |
103,904
| | | | | |
102,693
| | | | | |
99,841
| | | | | |
103,299
| | | | | |
99,239
| |
| | | | | | | | | | | | | | | | | | | | |
|
|
LIMELIGHT NETWORKS, INC. Reconciliation of U.S. GAAP
Net Loss to EBITDA to Adjusted EBITDA (In thousands) (Unaudited) |
|
|
| |
| |
| |
| |
| |
| | | | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | | | | | | | | |
|
| | | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | June 30, 2016 | | June 30, 2015 |
| | | | | | | | | | |
|
U.S. GAAP net loss
| | |
$
|
(54,894
|
)
| |
$
|
(5,946
|
)
| |
$
|
(6,362
|
)
| |
$
|
(60,840
|
)
| |
$
|
(12,045
|
)
|
| | | | | | | | | | |
|
Depreciation and amortization
| | | |
5,115
| | | |
5,291
| | | |
5,011
| | | |
10,406
| | | |
9,804
| |
Interest expense
| | | |
279
| | | |
179
| | | |
-
| | | |
459
| | | |
4
| |
Interest and other (income) expense
| | | |
71
| | | |
(406
|
)
| | |
56
| | | |
(335
|
)
| | |
(1,831
|
)
|
Income tax expense
| | |
|
115
|
| |
|
158
|
| |
|
90
|
| |
|
273
|
| |
|
145
|
|
| | | | | | | | | | |
|
EBITDA
| | |
$
|
(49,314
|
)
| |
$
|
(724
|
)
| |
$
|
(1,205
|
)
| |
$
|
(50,037
|
)
| |
$
|
(3,923
|
)
|
| | | | | | | | | | |
|
Provision for litigation
| | | |
50,956
| | | |
-
| | | |
-
| | | |
50,956
| | | |
-
| |
Share-based compensation
| | | |
3,293
| | | |
3,496
| | | |
3,280
| | | |
6,789
| | | |
6,349
| |
Litigation expenses
| | |
|
1,271
|
| |
|
1,178
|
| |
|
(1,174
|
)
| |
|
2,449
|
| |
|
(1,155
|
)
|
| | | | | | | | | | |
|
Adjusted EBITDA
| | |
$
|
6,206
|
| |
$
|
3,950
|
| |
$
|
901
|
| |
$
|
10,157
|
| |
$
|
1,271
|
|
| | | | | | | | | | |
|
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 877-388-8480 within the United States or +1
678-809-1592 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 revenues for the full
year 2016; our gross margin, non-GAAP net income and capital
expenditures for the full year 2016; our expectations regarding
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
July 27, 2016, 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 (NASDAQ: 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 award winning Limelight Orchestrate™
platform includes an integrated suite of content delivery technology and
services that helps organizations secure digital content, deliver
exceptional multi-screen experiences, improve brand awareness, drive
revenue, and enhance customer relationships — all while reducing
costs. For more information, please visit www.limelight.com,
read our blog,
follow us on Twitter, Facebook and LinkedIn and
be sure to visit Limelight
Connect.”
Copyright (C) 2016 Limelight Networks, Inc. All rights reserved. All
product or service names are the property of their respective owners.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727006292/en/
Limelight Networks, Inc.
Sajid Malhotra, 602-850-5778
ir@llnw.com
Source: Limelight Networks, Inc.