-
Q4 Revenue of $42.2 million, and net loss of $5.1 million, or $0.05
per basic share
- $118.5 million, or $1.22 per basic share, of cash and cash equivalents
and marketable securities
-
Sold Web Content Management (WCM) business
-
The Board of Directors authorized a $15 million share repurchase
program
TEMPE, Ariz.--(BUSINESS WIRE)--
Limelight Networks, Inc. (Nasdaq:LLNW), a global leader in digital
content delivery, today reported revenue of $42.2 million for the
quarter ended December 31, 2013, compared to $46.5 million for the
fourth quarter of 2012.
On a GAAP basis, the company reported a net loss of $5.1 million or
$0.05 per basic share for the fourth quarter of 2013, compared to a loss
of $12.2 million, or $0.12 per basic share in the same period of 2012.
The fourth quarter of 2013 included a $3.8 million gain, or $0.04 per
basic share, on the sale of the company’s WCM business.
On a non-GAAP basis, net loss was $5.1 million, or $0.05 per basic share
for the quarter ended December 31, 2013, compared to a non-GAAP net loss
of $5.6 million or $0.06 per basic share in the fourth quarter of 2012.
The company reported revenue of $173.4 million for the year ended
December 31, 2013, compared to $180.2 million for 2012.
On a GAAP basis, the company reported a net loss of $35.4 million, or
$0.37 per basic share for the year ended December 31, 2013, compared to
a loss of $32.9 million, or $0.32 per basic share in the same period of
2012.
On a non-GAAP basis, net loss was $23.0 million, or $0.24 per basic
share for the year ended December 31, 2013, compared to a non-GAAP net
loss of $22.0 million or $0.22 per basic share in the same period of
2012. Limelight ended the year with 482 employees.
“We are one year into our turnaround efforts to strengthen operations
and improve our financial performance. The sale of WCM helps us focus
our resources on our core capabilities,” said Bob Lento, Chief Executive
Officer. “Looking ahead, with a clearer value proposition for our
customers, we aim to reduce customer churn, improve customer
satisfaction, and steadily improve our financial performance. While I’m
encouraged by the progress we made in 2013, we have more work ahead of
us in 2014.”
Financial Tables
LIMELIGHT NETWORKS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except per share data) |
|
| |
| |
| | December 31, | | December 31, |
| |
| 2013 |
| |
| 2012 |
|
| | (Unaudited) | | |
ASSETS | | | | |
Current assets:
| | | | |
Cash and cash equivalents
| |
$
|
85,956
| | |
$
|
108,915
| |
Marketable securities
| | |
32,506
| | | |
19,040
| |
Accounts receivable, net
| | |
21,430
| | | |
26,602
| |
Income taxes receivable
| | |
371
| | | |
471
| |
Deferred income tax
| | |
93
| | | |
38
| |
Prepaid expenses and other current assets
| |
|
8,192
|
| |
|
12,308
|
|
Total current assets
| | |
148,548
| | | |
167,374
| |
Property and equipment, net
| | |
32,905
| | | |
41,251
| |
Marketable securities, less current portion
| | |
46
| | | |
18
| |
Deferred income tax, less current portion
| | |
1,307
| | | |
2,838
| |
Goodwill
| | |
77,035
| | | |
80,278
| |
Other intangible assets, net
| | |
2,354
| | | |
6,387
| |
Other assets
| |
|
6,103
|
| |
|
6,735
|
|
Total assets
| |
$
|
268,298
|
| |
$
|
304,881
|
|
| | | |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
Current liabilities:
| | | | |
Accounts payable
| |
$
|
5,473
| | |
$
|
6,730
| |
Deferred revenue
| | |
3,523
| | | |
6,892
| |
Capital lease obligation
| | |
466
| | | |
1,301
| |
Income taxes payable
| | |
799
| | | |
519
| |
Other current liabilities
| |
|
15,022
|
| |
|
14,866
|
|
Total current liabilities
| | |
25,283
| | | |
30,308
| |
Capital lease obligation, less current portion
| | |
358
| | | |
824
| |
Deferred income tax
| | |
321
| | | |
461
| |
Deferred revenue, less current portion
| | |
1,500
| | | |
797
| |
Other long-term liabilities
| |
|
3,505
|
| |
|
5,261
|
|
Total liabilities
| | |
30,967
| | | |
37,651
| |
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 at
December 31, 2013 and December 31, 2012; 97,677 and 98,038 shares
issued and outstanding at December 31, 2013 and December 31, 2012,
respectively
| | |
98
| | | |
98
| |
Additional paid-in capital
| | |
458,748
| | | |
452,258
| |
Contingent consideration
| | |
-
| | | |
33
| |
Accumulated other comprehensive loss
| | |
(1,663
|
)
| | |
(709
|
)
|
Accumulated deficit
| |
|
(219,852
|
)
| |
|
(184,450
|
)
|
Total stockholders' equity
| |
|
237,331
|
| |
|
267,230
|
|
Total liabilities and stockholders' equity
| |
$
|
268,298
|
| |
$
|
304,881
|
|
| | | | | | | |
|
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, | | December 31, | | December 31, | | December 31, |
| | |
| 2013 |
| |
| 2013 |
| |
| 2012 |
| |
| 2013 |
| |
| 2012 |
|
| | | | | | | | | | |
|
Revenues
| | |
$
|
42,200
|
| |
$
|
42,656
|
| |
$
|
46,471
|
| |
$
|
173,433
|
| |
$
|
180,236
|
|
Cost of revenue:
| | | | | | | | | | | |
Cost of services * +
| | | |
22,061
| | | |
22,138
| | | |
21,866
| | | |
88,783
| | | |
85,226
| |
Depreciation - network
| | |
|
4,864
|
| |
|
5,278
|
| |
|
7,009
|
| |
|
22,942
|
| |
|
27,992
|
|
Total cost of revenue +
| | |
|
26,925
|
| |
|
27,416
|
| |
|
28,875
|
| |
|
111,725
|
| |
|
113,218
|
|
Gross profit
| | | |
15,275
| | | |
15,240
| | | |
17,596
| | | |
61,708
| | | |
67,018
| |
Operating expenses:
| | | | | | | | | | | |
General and administrative * +
| | | |
7,882
| | | |
8,244
| | | |
10,536
| | | |
31,904
| | | |
34,500
| |
Sales and marketing *
| | | |
9,929
| | | |
10,363
| | | |
10,613
| | | |
41,474
| | | |
45,044
| |
Research and development *
| | | |
5,189
| | | |
5,423
| | | |
5,075
| | | |
22,003
| | | |
20,182
| |
Depreciation and amortization
| | |
|
1,479
|
| |
|
1,433
|
| |
|
1,514
|
| |
|
5,804
|
| |
|
5,843
|
|
Total operating expenses +
| | |
|
24,479
|
| |
|
25,463
|
| |
|
27,738
|
| |
|
101,185
|
| |
|
105,569
|
|
| | | | | | | | | | |
|
Operating loss
| | | |
(9,204
|
)
| | |
(10,223
|
)
| | |
(10,142
|
)
| | |
(39,477
|
)
| | |
(38,551
|
)
|
| | | | | | | | | | |
|
Other income (expense):
| | | | | | | | | | | |
Interest expense
| | | |
(12
|
)
| | |
(15
|
)
| | |
(41
|
)
| | |
(76
|
)
| | |
(177
|
)
|
Interest income
| | | |
82
| | | |
89
| | | |
79
| | | |
321
| | | |
356
| |
Gain on sale of cost basis investment
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
9,420
| |
Other, net
| | |
|
4,489
|
| |
|
(557
|
)
| |
|
(20
|
)
| |
|
4,643
|
| |
|
(602
|
)
|
Total other income (expense)
| | |
|
4,559
|
| |
|
(483
|
)
| |
|
18
|
| |
|
4,888
|
| |
|
8,997
|
|
| | | | | | | | | | |
|
Loss from continuing operations before income taxes
| | | |
(4,645
|
)
| | |
(10,706
|
)
| | |
(10,124
|
)
| | |
(34,589
|
)
| | |
(29,554
|
)
|
Income tax expense
| | |
|
59
|
| |
|
197
|
| |
|
167
|
| |
|
387
|
| |
|
481
|
|
| | | | | | | | | | |
|
Loss from continuing operations
| | | |
(4,704
|
)
| | |
(10,903
|
)
| | |
(10,291
|
)
| | |
(34,976
|
)
| | |
(30,035
|
)
|
| | | | | | | | | | |
|
Discontinued operations:
| | | | | | | | | | | |
Loss from discontinued operations, net of income taxes
| |
|
(411
|
)
| |
|
(15
|
)
| |
|
(1,943
|
)
| |
|
(426
|
)
| |
|
(2,861
|
)
|
| | | | | | | | | | |
|
Net loss
| | |
$
|
(5,115
|
)
| |
$
|
(10,918
|
)
| |
$
|
(12,234
|
)
| |
$
|
(35,402
|
)
| |
$
|
(32,896
|
)
|
| | | | | | | | | | |
|
Net loss per share:
| | | | | | | | | | | |
Basic
| | | | | | | | | | | |
Continuing operations
| | |
$
|
(0.05
|
)
| |
$
|
(0.11
|
)
| |
$
|
(0.10
|
)
| |
$
|
(0.36
|
)
| |
$
|
(0.30
|
)
|
Discontinued operations
| | |
$
|
(0.00
|
)
| |
$
|
(0.00
|
)
| |
$
|
(0.02
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.02
|
)
|
Total
| | |
$
|
(0.05
|
)
| |
$
|
(0.11
|
)
| |
$
|
(0.12
|
)
| |
$
|
(0.37
|
)
| |
$
|
(0.32
|
)
|
| | | | | | | | | | |
|
Diluted
| | | | | | | | | | | |
Continuing operations
| | |
$
|
(0.05
|
)
| |
$
|
(0.11
|
)
| |
$
|
(0.10
|
)
| |
$
|
(0.36
|
)
| |
$
|
(0.30
|
)
|
Discontinued operations
| | |
$
|
(0.00
|
)
| |
$
|
(0.00
|
)
| |
$
|
(0.02
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.02
|
)
|
Total
| | |
$
|
(0.05
|
)
| |
$
|
(0.11
|
)
| |
$
|
(0.12
|
)
| |
$
|
(0.37
|
)
| |
$
|
(0.32
|
)
|
| | | | | | | | | | |
|
Shares used in per share calculations:
| | | | | | | | | | | |
Basic
| | | |
97,380
| | | |
96,949
| | | |
98,765
| | | |
96,851
| | | |
101,283
| |
Diluted
| | | |
97,380
| | | |
96,949
| | | |
98,765
| | | |
96,851
| | | |
101,283
| |
| | | | | | | | | | |
|
* Includes share-based compensation (see supplemental table for
figures)
|
| | | | | | | | | | |
|
+ Includes reclassifications to match current year presentation
|
(See summary of reclassifications for detail)
|
|
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, |
| |
| 2013 | |
| 2013 |
| |
| 2012 |
| |
| 2013 |
| |
| 2012 |
|
Supplemental financial data (in thousands): | | | | | | | | | | |
| | | | | | | | | |
|
Share-based compensation: | | | | | | | | | | |
| | | | | | | | | |
|
Cost of revenues
| |
$
|
356
| |
$
|
499
| | |
$
|
522
| | |
$
|
1,873
| | |
$
|
2,117
| |
General and administrative
| | |
1,154
| | |
1,591
| | | |
1,873
| | | |
5,971
| | | |
6,511
| |
Sales and marketing
| | |
348
| | |
638
| | | |
601
| | | |
2,245
| | | |
3,104
| |
Research and development
| |
|
687
| |
|
495
|
| |
|
644
|
| |
|
2,256
|
| |
|
2,743
|
|
| | | | | | | | | |
|
Total share-based compensation
| |
$
|
2,545
| |
$
|
3,223
|
| |
$
|
3,640
|
| |
$
|
12,345
|
| |
$
|
14,475
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
Depreciation and amortization: | | | | | | | | | | |
| | | | | | | | | |
|
Network-related depreciation
| |
$
|
4,864
| |
$
|
5,278
| | |
$
|
7,009
| | |
$
|
22,942
| | |
$
|
27,992
| |
Other depreciation and amortization
| | |
797
| | |
722
| | | |
787
| | | |
2,961
| | | |
2,972
| |
Amortization of intangible assets
| |
|
682
| |
|
711
|
| |
|
727
|
| |
|
2,843
|
| |
|
2,871
|
|
| | | | | | | | | |
|
Total depreciation and amortization
| |
$
|
6,343
| |
$
|
6,711
|
| |
$
|
8,523
|
| |
$
|
28,746
|
| |
$
|
33,835
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
Net increase (decrease) in cash, cash equivalents and marketable
securities:
| |
$
|
6,237
| |
$
|
(6,603
|
)
| |
$
|
(2,012
|
)
| |
$
|
(9,465
|
)
| |
$
|
(12,277
|
)
|
| | | | | | | | | |
|
| | | | | | | | | |
|
End of period statistics: | | | | | | | | | | |
| | | | | | | | | |
|
Approximate number of active customers
| | |
1,295
| | |
1,341
| | | |
1,451
| | | |
1,295
| | | |
1,451
| |
| | | | | | | | | |
|
Number of employees
| | |
482
| | |
508
| | | |
511
| | | |
482
| | | |
511
| |
| | | | | | | | | |
|
LIMELIGHT NETWORKS, INC. |
SUMMARY OF RECLASSIFICATIONS |
(In thousands) |
(Unaudited) |
|
| |
| |
| |
| |
| |
| | Three Months Ended | | Twelve Months Ended |
| | | | | | | | | |
|
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, |
| | 2013 | | 2013 |
| | 2012 |
| | 2013 | | 2012 |
|
Summary of reclassifications (in thousands): | | | | | | | | | | |
| | | | | | | | | |
|
Cost of services | | | | | | | | | | |
As previously reported
| |
22,061
| |
21,773
| | |
21,529
| | |
88,783
| |
83,723
| |
Reclassification
| |
-
| |
365
|
| |
337
|
| |
-
| |
1,503
|
|
After Reclassification
| |
22,061
| |
22,138
|
| |
21,866
|
| |
88,783
| |
85,226
|
|
| | | | | | | | | |
|
Total cost of revenue | | | | | | | | | | |
As previously reported
| |
26,925
| |
27,051
| | |
28,538
| | |
111,725
| |
111,715
| |
Reclassification
| |
-
| |
365
|
| |
337
|
| |
-
| |
1,503
|
|
After reclassifications
| |
26,925
| |
27,416
|
| |
28,875
|
| |
111,725
| |
113,218
|
|
| | | | | | | | | |
|
Gross profit | | | | | | | | | | |
As previously reported
| |
15,275
| |
15,605
| | |
17,933
| | |
61,708
| |
68,521
| |
Reclassifications
| |
-
| |
(365
|
)
| |
(337
|
)
| |
-
| |
(1,503
|
)
|
After reclassifications
| |
15,275
| |
15,240
|
| |
17,596
|
| |
61,708
| |
67,018
|
|
| | | | | | | | | |
|
General and administrative | | | | | | | | | | |
As previously reported
| |
7,882
| |
8,609
| | |
10,873
| | |
31,904
| |
36,003
| |
Reclassifications
| |
-
| |
(365
|
)
| |
(337
|
)
| |
-
| |
(1,503
|
)
|
After reclassifications
| |
7,882
| |
8,244
|
| |
10,536
|
| |
31,904
| |
34,500
|
|
| | | | | | | | | |
|
Total operating expenses | | | | | | | | | | |
As previously reported
| |
24,479
| |
25,828
| | |
28,075
| | |
101,185
| |
107,072
| |
Reclassifications
| |
-
| |
(365
|
)
| |
(337
|
)
| |
-
| |
(1,503
|
)
|
After reclassifications
| |
24,479
| |
25,463
|
| |
27,738
|
| |
101,185
| |
105,569
|
|
| | | | | | | | | | | | |
|
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, |
| | | |
| 2013 |
| |
| 2013 |
| |
| 2012 |
| |
| 2013 |
| |
| 2012 |
|
| | | | | | | | | | | |
|
Operating activities | | | | | | | | | | |
|
Net loss
| |
$
|
(5,115
|
)
| |
$
|
(10,918
|
)
| |
$
|
(12,234
|
)
| |
$
|
(35,402
|
)
| |
$
|
(32,896
|
)
|
|
Loss from discontinued operations
| |
|
(411
|
)
| |
|
(15
|
)
| |
|
(1,943
|
)
| |
|
(426
|
)
| |
|
(2,861
|
)
|
|
Net loss from continuing operations
| | |
(4,704
|
)
| | |
(10,903
|
)
| | |
(10,291
|
)
| | |
(34,976
|
)
| | |
(30,035
|
)
|
| | | | | | | | | | | |
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
| | | | | | | | | |
| |
Depreciation and amortization
| | |
6,343
| | | |
6,711
| | | |
8,523
| | | |
28,746
| | | |
33,835
| |
| |
Share-based compensation
| | |
2,545
| | | |
3,223
| | | |
3,640
| | | |
12,345
| | | |
14,475
| |
| |
Deferred income taxes
| | |
(119
|
)
| | |
80
| | | |
261
| | | |
(328
|
)
| | |
(38
|
)
|
| |
Foreign currency remeasurement (gain) loss
| | |
(27
|
)
| | |
641
| | | |
(276
|
)
| | |
(531
|
)
| | |
(103
|
)
|
| |
Loss on sale of property and equipment
| | |
417
| | | |
3
| | | |
70
| | | |
442
| | | |
89
| |
| |
Accounts receivable charges
| | |
206
| | | |
225
| | | |
905
| | | |
965
| | | |
2,010
| |
| |
Amortization of premium on marketable securities
| | |
176
| | | |
182
| | | |
107
| | | |
639
| | | |
472
| |
| |
Gain on sale of cost basis investment
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(9,420
|
)
|
| |
Gain on sale of the Web Content Management business
| | |
(3,836
|
)
| | |
-
| | | |
-
| | | |
(3,836
|
)
| | |
-
| |
| |
Non cash increase in cost basis investment
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(528
|
)
|
| |
Changes in operating assets and liabilities:
| | | | | | | | | | |
| |
Accounts receivable
| | |
2,404
| | | |
(1,398
|
)
| | |
901
| | | |
2,581
| | | |
(567
|
)
|
| |
Prepaid expenses and other current assets
| | |
(707
|
)
| | |
(33
|
)
| | |
(76
|
)
| | |
1,222
| | | |
2,910
| |
| |
Income taxes receivable
| | |
(27
|
)
| | |
(17
|
)
| | |
(47
|
)
| | |
105
| | | |
(440
|
)
|
| |
Other assets
| | |
(390
|
)
| | |
341
| | | |
(72
|
)
| | |
519
| | | |
(1,626
|
)
|
| |
Accounts payable
| | |
(3,293
|
)
| | |
252
| | | |
265
| | | |
(2,192
|
)
| | |
2,419
| |
| |
Deferred revenue
| | |
(252
|
)
| | |
(827
|
)
| | |
(544
|
)
| | |
4
| | | |
(137
|
)
|
| |
Other current liabilities
| | |
822
| | | |
803
| | | |
1,040
| | | |
384
| | | |
17
| |
| |
Income taxes payable
| | |
(149
|
)
| | |
96
| | | |
(55
|
)
| | |
305
| | | |
(255
|
)
|
| |
Other long term liabilities
| |
|
(350
|
)
| |
|
(166
|
)
| |
|
(119
|
)
| |
|
(798
|
)
| |
|
(649
|
)
|
|
Net cash (used in) provided by operating activities
| |
|
(941
|
)
| |
|
(787
|
)
| |
|
4,232
|
| |
|
5,596
|
| |
|
12,429
|
|
| | | | | | | | | | | |
|
Investing activities | | | | | | | | | | |
| |
Purchase of marketable securities
| | |
(9,236
|
)
| | |
(3,841
|
)
| | |
-
| | | |
(59,047
|
)
| | |
(27,280
|
)
|
| |
Maturities of marketable securities
| | |
9,580
| | | |
7,426
| | | |
8,340
| | | |
44,901
| | | |
27,625
| |
| |
Purchases of property and equipment
| | |
(5,890
|
)
| | |
(5,563
|
)
| | |
(916
|
)
| | |
(18,575
|
)
| | |
(18,390
|
)
|
| |
Proceeds from sale of cost basis investment
| | |
1,237
| | | |
-
| | | |
-
| | | |
1,237
| | | |
10,154
| |
| |
Proceeds from sale of the Web Content Management business
| | |
12,341
| | | |
-
| | | |
-
| | | |
12,341
| | | |
-
| |
| |
Proceeds from sale of discontinued operations
| |
|
-
|
| |
|
5
|
| |
|
224
|
| |
|
124
|
| |
|
7,441
|
|
|
Net cash (used in) provided by investing activities
| |
|
8,032
|
| |
|
(1,973
|
)
| |
|
7,648
|
| |
|
(19,019
|
)
| |
|
(450
|
)
|
| | | | | | | | | | | |
|
Financing activities | | | | | | | | | | |
| |
Payments on capital lease obligations
| | |
(177
|
)
| | |
(278
|
)
| | |
(427
|
)
| | |
(1,301
|
)
| | |
(1,749
|
)
|
| |
Proceeds from exercise of stock options
| | |
9
| | | |
27
| | | |
34
| | | |
38
| | | |
189
| |
| |
Proceeds from employee stock purchase plan
| | |
225
| | | |
-
| | | |
-
| | | |
225
| | | |
-
| |
| |
Cash paid for purchase of common stock
| | |
-
| | | |
-
| | | |
(4,578
|
)
| | |
(5,512
|
)
| | |
(20,851
|
)
|
| |
Payment of employee tax withholdings related to restricted stock
| |
|
(64
|
)
| |
|
(180
|
)
| |
|
(81
|
)
| |
|
(2,372
|
)
| |
|
(682
|
)
|
|
Net cash used in financing activities
| |
|
(7
|
)
| |
|
(431
|
)
| |
|
(5,052
|
)
| |
|
(8,922
|
)
| |
|
(23,093
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
|
(350
|
)
| |
|
310
|
| |
|
(232
|
)
| |
|
(606
|
)
| |
|
(171
|
)
|
| | | | | | | | | | | |
|
Discontinued operations | |
| |
| |
| |
| |
|
| |
Cash used in operating activities of discontinued operations
| |
|
-
|
| |
|
(8
|
)
| |
|
(149
|
)
| |
|
(8
|
)
| |
|
(149
|
)
|
Net (decrease) increase in cash and cash equivalents | | |
6,734
| | | |
(2,889
|
)
| | |
6,447
| | | |
(22,959
|
)
| | |
(11,434
|
)
|
Cash and cash equivalents, beginning of period | |
|
79,222
|
| |
|
82,111
|
| |
|
102,468
|
| |
|
108,915
|
| |
|
120,349
|
|
Cash and cash equivalents, end of period | |
$
|
85,956
|
| |
$
|
79,222
|
| |
$
|
108,915
|
| |
$
|
85,956
|
| |
$
|
108,915
|
|
| | | | | | | | | | | | | | | | | | | |
|
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use Non-GAAP net income (loss)
and Adjusted EBITDA 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, amortization of intangibles, acquisition related
expenses, gain on sale of cost basis investment and WCM business and
discontinued operations. We define EBITDA as GAAP net income (loss)
before interest income, interest expense, gain on sale of cost basis
investment and WCM business, other income and expense, provision for
income taxes, depreciation and amortization, and discontinued
operations. We believe that EBITDA provides a useful metric to investors
to compare us with other companies within our industry and across
industries. We define Adjusted EBITDA as EBITDA adjusted for share-based
compensation, litigation expenses and acquisition related expenses. We
use Adjusted EBITDA as a supplemental measure to review and assess
operating performance. We also believe use of Adjusted EBITDA
facilitates investors' use of operating performance comparisons from
period to period as well as across companies. 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 Adjusted EBITDA are not
defined under United States generally accepted accounting principles, or
United States GAAP, and are not measures of operating income, operating
performance or liquidity presented in accordance with United States
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 United States 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;
-
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 that
we may incur;
-
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 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 EBITDA and Adjusted EBITDA 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 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
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 U.S. GAAP Net Loss to Non-GAAP Net Loss |
(In thousands) |
(Unaudited) |
|
| |
| |
| |
| |
| |
| | Three Months Ended | | Twelve Months Ended |
| | | | | | | | | |
|
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, |
| |
| 2013 |
| |
| 2013 |
| |
| 2012 |
| |
| 2013 |
| |
| 2012 |
|
| | | | | | | | | |
|
U.S. GAAP net loss
| |
$
|
(5,115
|
)
| |
$
|
(10,918
|
)
| |
$
|
(12,234
|
)
| |
$
|
(35,402
|
)
| |
$
|
(32,896
|
)
|
| | | | | | | | | |
|
Share-based compensation
| | |
2,545
| | | |
3,223
| | | |
3,640
| | | |
12,345
| | | |
14,475
| |
Litigation defense expenses
| | |
151
| | | |
149
| | | |
361
| | | |
450
| | | |
527
| |
Acquisition related expenses
| | |
63
| | | |
146
| | | |
(17
|
)
| | |
176
| | | |
(388
|
)
|
Amortization of intangible assets
| | |
682
| | | |
711
| | | |
727
| | | |
2,843
| | | |
2,871
| |
Gain on sale of cost basis investment
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(9,420
|
)
|
Gain on sale of the Web Content Management business
| | |
(3,836
|
)
| | |
-
| | | |
-
| | | |
(3,836
|
)
| | |
-
| |
Loss from discontinued operations
| |
|
411
|
| |
|
15
|
| |
|
1,943
|
| |
|
426
|
| |
|
2,861
|
|
| | | | | | | | | |
|
Non-GAAP net loss
| |
$
|
(5,099
|
)
| |
$
|
(6,674
|
)
| |
$
|
(5,580
|
)
| |
$
|
(22,998
|
)
| |
$
|
(21,970
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
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, |
| | |
| 2013 |
| |
| 2013 |
| |
| 2012 |
| |
| 2013 |
| |
| 2012 |
|
| | | | | | | | | | |
|
U.S. GAAP net loss
| |
$
|
(5,115
|
)
| |
$
|
(10,918
|
)
| |
$
|
(12,234
|
)
| |
$
|
(35,402
|
)
| |
$
|
(32,896
|
)
|
| | | | | | | | | | |
|
|
Depreciation and amortization
| | |
6,343
| | | |
6,711
| | | |
8,523
| | | |
28,746
| | | |
33,835
| |
|
Interest expense
| | |
12
| | | |
15
| | | |
41
| | | |
76
| | | |
177
| |
|
Gain on sale of cost basis investment
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(9,420
|
)
|
|
Gain on sale of the Web Content Management business
| | |
(3,836
|
)
| | |
-
| | | |
-
| | | |
(3,836
|
)
| | |
-
| |
|
Interest and other (income) expense
| | |
(735
|
)
| | |
468
| | | |
(59
|
)
| | |
(1,128
|
)
| | |
246
| |
|
Income tax expense
| | |
59
| | | |
197
| | | |
167
| | | |
387
| | | |
481
| |
|
Loss from discontinued operations
| |
|
411
|
| |
|
15
|
| |
|
1,943
|
| |
|
426
|
| |
|
2,861
|
|
| | | | | | | | | | |
|
EBITDA
| | |
(2,861
|
)
| | |
(3,512
|
)
| | |
(1,619
|
)
| | |
(10,731
|
)
| | |
(4,716
|
)
|
| | | | | | | | | | |
|
|
Share-based compensation
| | |
2,545
| | | |
3,223
| | | |
3,640
| | | |
12,345
| | | |
14,475
| |
|
Litigation defense expenses
| | |
151
| | | |
149
| | | |
361
| | | |
450
| | | |
527
| |
|
Acquisition related expenses
| |
|
63
|
| |
|
146
|
| |
|
(17
|
)
| |
|
176
|
| |
|
(388
|
)
|
| | | | | | | | | | |
|
Adjusted EBITDA (loss)
| |
$
|
(102
|
)
| |
$
|
6
|
| |
$
|
2,365
|
| |
$
|
2,240
|
| |
$
|
9,898
|
|
| | | | | | | | | | | | | | | | | | | |
|
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
audiocast live from http://www.limelight.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 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 10-K and other filings with the
Securities and Exchange Commission and the final review of the results
and amendments and preparation of quarterly or annual 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
Limelight Networks (NASDAQ: LLNW), a global leader in digital content
delivery, empowers customers to better engage digital audiences by
enabling them to manage and deliver digital content on any device,
anywhere in the world. The Company's award winning Limelight
Orchestrate™ platform includes an integrated suite of content delivery
technology and services that helps organizations 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,
and be sure to follow us on Twitter at www.twitter.com/llnw.
Copyright (C) 2014 Limelight Networks, Inc. All rights reserved. All
product or service names are the property of their respective owners.

Limelight Networks, Inc.
Pete Perrone, 602-850-5000
ir@llnw.com
or
famaPR
on behalf of Limelight Networks
Amy Peterson, 617-986-5020
limelight@famapr.com
Source: Limelight Networks, Inc.