-
Revenue of $39.0 million and $0.05 loss per basic share
-
Non-GAAP loss of $0.02 per share
- $101.3 million, or $1.03 per share, of cash, cash equivalents and
marketable securities
-
2014 revenue guidance raised to between $159 and $161 million
TEMPE, Ariz.--(BUSINESS WIRE)--
Limelight Networks, Inc. (Nasdaq:LLNW) ("Limelight"), a global leader in
digital content delivery, today reported revenue of $39.0 million for
the quarter ended September 30, 2014, compared to $42.7 million in the
third quarter of 2013 and $41.3 million in the second quarter of 2014.
Netflix revenue was $1.2 million in the third quarter of 2014, compared
to $4.2 million in the third quarter of 2013 and $5.4 million in the
second quarter of 2014. The third quarter of 2013 included $3.3 million
of revenues from the Company’s Web Content Management business, divested
in the fourth quarter of 2013.
On a GAAP basis, the Company reported a loss from continuing operations
of $5.1 million or $0.05 per basic and fully diluted share for the third
quarter of 2014, compared to a loss of $10.9 million, or $0.11 per basic
and fully diluted share in the same period of 2013.
On a non-GAAP basis, net loss was $2.2 million, or $0.02 per basic share
for the quarter ended September 30, 2014 compared to a non-GAAP net loss
of $6.7 million or $0.07 per basic share in the third quarter of 2013.
EBITDA from continuing operations for the quarter was negative $1.2
million. After adjusting for share based compensation, litigation
expense, and acquisition related expenses the Company reported adjusted
EBITDA of $1.4 million compared to an adjusted breakeven EBITDA in the
year ago period.
During the quarter, Limelight purchased 0.4 million shares at an average
price of $2.83, in the open market, under its repurchase authorization.
The Company has $12.5 million remaining under its previously announced
repurchase authorization.
Limelight ended the quarter with 509 employees, up from 477 employees at
the end of the second quarter of 2014, and slightly up from 508
employees in the year ago period.
Based on current conditions, the company is raising it full year revenue
guidance to between $159 and $161 million, from its previous revenue
guidance of between $155 and $159 million.
Commenting on the quarter, Chief Executive Officer, Robert Lento said,
“I’m very pleased with the overall performance in the quarter. Our
revenue attainment, coupled with operational and financial improvements,
and expense discipline, validates our approach and priorities.”
He added, “we believe, demand for our existing products, the
introduction of new features and functionality, and the opportunity to
further improve our gross margins will improve our position in the
market and create shareholder value. We remain focused on executing our
plan for the remainder of 2014 and exiting the year well positioned for
sustained performance improvements in 2015.”
Financial Tables
|
|
LIMELIGHT NETWORKS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except per share data) |
|
| |
| |
| | September 30, | | December 31, |
| | 2014 | | 2013 |
| | (Unaudited) | | |
ASSETS | | | | |
Current assets:
| | | | |
Cash and cash equivalents
| |
$
|
67,028
| | |
$
|
85,956
| |
Marketable securities
| | |
34,228
| | | |
32,506
| |
Accounts receivable, net
| | |
22,443
| | | |
21,430
| |
Income taxes receivable
| | |
289
| | | |
371
| |
Deferred income taxes
| | |
65
| | | |
93
| |
Prepaid expenses and other current assets
| |
|
9,040
|
| |
|
8,192
|
|
Total current assets
| | |
133,093
| | | |
148,548
| |
Property and equipment, net
| | |
32,154
| | | |
32,905
| |
Marketable securities, less current portion
| | |
40
| | | |
46
| |
Deferred income taxes, less current portion
| | |
1,337
| | | |
1,307
| |
Goodwill
| | |
76,583
| | | |
77,035
| |
Other intangible assets, net
| | |
1,344
| | | |
2,354
| |
Other assets
| |
|
5,098
|
| |
|
6,103
|
|
Total assets
| |
$
|
249,649
|
| |
$
|
268,298
|
|
| | | |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
Current liabilities:
| | | | |
Accounts payable
| |
$
|
9,314
| | |
$
|
5,473
| |
Deferred revenue
| | |
3,503
| | | |
3,523
| |
Capital lease obligation
| | |
219
| | | |
466
| |
Income taxes payable
| | |
634
| | | |
799
| |
Other current liabilities
| |
|
12,245
|
| |
|
15,022
|
|
Total current liabilities
| | |
25,915
| | | |
25,283
| |
Capital lease obligation, less current portion
| | |
192
| | | |
358
| |
Deferred income taxes
| | |
181
| | | |
321
| |
Deferred revenue, less current portion
| | |
627
| | | |
1,500
| |
Other long-term liabilities
| |
|
2,955
|
| |
|
3,505
|
|
Total liabilities
| | |
29,870
| | | |
30,967
| |
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
September 30, 2014 and December 31, 2013; 98,655 and 97,677 shares
issued and outstanding at September 30, 2014 and December 31,
2013, respectively
| | |
99
| | | |
98
| |
Additional paid-in capital
| | |
463,712
| | | |
458,748
| |
Accumulated other comprehensive loss
| | |
(4,596
|
)
| | |
(1,663
|
)
|
Accumulated deficit
| |
|
(239,436
|
)
| |
|
(219,852
|
)
|
Total stockholders' equity
| |
|
219,779
|
| |
|
237,331
|
|
Total liabilities and stockholders' equity
| |
$
|
249,649
|
| |
$
|
268,298
|
|
|
LIMELIGHT NETWORKS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share data) |
(Unaudited) |
|
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | |
|
| | Three Months Ended | | Nine Months Ended |
| | | | | | | | | | | | | | | |
|
| | September 30, | | June 30, | | Percent | | September 30, | | Percent | | September 30, | | September 30, | | Percent |
| | 2014 | | 2014 | | Change | | 2013 | | Change | | 2014 | | 2013 | | Change |
| | | | | | | | | | | | | | | |
|
Revenues
| |
$
|
39,020
|
| |
$
|
41,343
|
| |
-6
|
%
| |
$
|
42,656
|
| |
-9
|
%
| |
$
|
121,533
|
| |
$
|
131,232
|
| |
-7
|
%
|
Cost of revenue:
| | | | | | | | | | | | | | | | |
Cost of services (1) (2) (3)
| | |
18,672
| | | |
21,326
| | |
-12
|
%
| | |
22,138
| | |
-16
|
%
| | |
61,563
| | | |
66,721
| | |
-8
|
%
|
Depreciation - network
| |
|
4,207
|
| |
|
4,144
|
| |
2
|
%
| |
|
5,278
|
| |
-20
|
%
| |
|
12,688
|
| |
|
18,078
|
| |
-30
|
%
|
Total cost of revenue (1) (3)
| |
|
22,879
|
| |
|
25,470
|
| |
-10
|
%
| |
|
27,416
|
| |
-17
|
%
| |
|
74,251
|
| |
|
84,799
|
| |
-12
|
%
|
Gross profit (1) (3)
| | |
16,141
| | | |
15,873
| | |
2
|
%
| | |
15,240
| | |
6
|
%
| | |
47,282
| | | |
46,433
| | |
2
|
%
|
Gross profit percentage
| | |
41.4
|
%
| | |
38.4
|
%
| | | | |
35.7
|
%
| | | | |
38.9
|
%
| | |
35.4
|
%
| | |
Operating expenses:
| | | | | | | | | | | | | | | | |
General and administrative (2) (3)
| | |
7,295
| | | |
7,643
| | |
-5
|
%
| | |
8,244
| | |
-12
|
%
| | |
21,966
| | | |
24,022
| | |
-9
|
%
|
Sales and marketing (2)
| | |
8,731
| | | |
9,370
| | |
-7
|
%
| | |
10,363
| | |
-16
|
%
| | |
28,356
| | | |
31,545
| | |
-10
|
%
|
Research & development (2)
| | |
5,514
| | | |
4,859
| | |
13
|
%
| | |
5,423
| | |
2
|
%
| | |
14,951
| | | |
16,814
| | |
-11
|
%
|
Depreciation and amortization
| |
|
825
|
| |
|
977
|
| |
-16
|
%
| |
|
1,433
|
| |
-42
|
%
| |
|
2,868
|
| |
|
4,325
|
| |
-34
|
%
|
Total operating expenses (3)
| |
|
22,365
|
| |
|
22,849
|
| |
-2
|
%
| |
|
25,463
|
| |
-12
|
%
| |
|
68,141
|
| |
|
76,706
|
| |
-11
|
%
|
| | | | | | | | | | | | | | | |
|
Operating loss
| | |
(6,224
|
)
| | |
(6,976
|
)
| |
-11
|
%
| | |
(10,223
|
)
| |
-39
|
%
| | |
(20,859
|
)
| | |
(30,273
|
)
| |
-31
|
%
|
| | | | | | | | | | | | | | | |
|
Other income (expense):
| | | | | | | | | | | | | | | | |
Interest expense
| | |
(7
|
)
| | |
(7
|
)
| |
0
|
%
| | |
(15
|
)
| |
-53
|
%
| | |
(26
|
)
| | |
(64
|
)
| |
-59
|
%
|
Interest income
| | |
66
| | | |
67
| | |
-1
|
%
| | |
89
| | |
-26
|
%
| | |
203
| | | |
238
| | |
-15
|
%
|
Other, net
| |
|
1,192
|
| |
|
(195
|
)
| |
-711
|
%
| |
|
(557
|
)
| |
-314
|
%
| |
|
1,014
|
| |
|
154
|
| |
558
|
%
|
Total other income (expense)
| |
|
1,251
|
| |
|
(135
|
)
| |
-1027
|
%
| |
|
(483
|
)
| |
-359
|
%
| |
|
1,191
|
| |
|
328
|
| |
263
|
%
|
| | | | | | | | | | | | | | | |
|
Loss from continuing operations before income taxes
| | |
(4,973
|
)
| | |
(7,111
|
)
| |
-30
|
%
| | |
(10,706
|
)
| |
-54
|
%
| | |
(19,668
|
)
| | |
(29,945
|
)
| |
-34
|
%
|
Income tax provision
| |
|
98
|
| |
|
27
|
| |
263
|
%
| |
|
197
|
| |
-50
|
%
| |
|
181
|
| |
|
328
|
| |
-45
|
%
|
| | | | | | | | | | | | | | | |
|
Loss from continuing operations
| | |
(5,071
|
)
| | |
(7,138
|
)
| |
-29
|
%
| | |
(10,903
|
)
| |
-53
|
%
| | |
(19,849
|
)
| | |
(30,273
|
)
| |
-34
|
%
|
| | | | | | | | | | | | | | | |
|
Discontinued operations:
| | | | | | | | | | | | | | | | |
(Loss) income from discontinued operations, net of income taxes
| |
|
(4
|
)
| |
|
269
|
| |
-101
|
%
| |
|
(15
|
)
| |
-73
|
%
| |
|
265
|
| |
|
(15
|
)
| |
-1867
|
%
|
| | | | | | | | | | | | | | | |
|
Net loss
| |
$
|
(5,075
|
)
| |
$
|
(6,869
|
)
| |
-26
|
%
| |
$
|
(10,918
|
)
| |
-54
|
%
| |
$
|
(19,584
|
)
| |
$
|
(30,288
|
)
| |
-35
|
%
|
| | | | | | | | | | | | | | | |
|
Net loss per share:
| | | | | | | | | | | | | | | | |
Basic and diluted
| | | | | | | | | | | | | | | | |
Continuing operations
| |
$
|
(0.05
|
)
| |
$
|
(0.07
|
)
| | | |
$
|
(0.11
|
)
| | | |
$
|
(0.20
|
)
| |
$
|
(0.31
|
)
| | |
Discontinued operations
| |
$
|
(0.00
|
)
| |
$
|
0.00
|
| | | |
$
|
(0.00
|
)
| | | |
$
|
0.00
|
| |
$
|
(0.00
|
)
| | |
Total
| |
$
|
(0.05
|
)
| |
$
|
(0.07
|
)
| | | |
$
|
(0.11
|
)
| | | |
$
|
(0.20
|
)
| |
$
|
(0.31
|
)
| | |
| | | | | | | | | | | | | | | |
|
Weighted average shares used in per share calculation:
| | | | | | | | | | | | | | | | |
Basic and diluted
| | |
98,458
| | | |
98,419
| | | | | |
96,949
| | | | | |
98,274
| | | |
96,675
| | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
(1) Includes the correction of approximately $1.1 million in over
billings by a co-location provider recorded as a reduction in cost
of revenues in the three and nine months ended September 30, 2014.
|
| | | | | | | | | | | | | | | |
|
(2) Includes share-based compensation (see supplemental table for
figures)
|
| | | | | | | | | | | | | | | |
|
(3) 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 | | | Nine Months Ended |
| | | | | | | | | | |
|
| | September 30, | | June 30, | | September 30, | | | September 30, | | September 30, |
| | 2014 | | 2014 | | 2013 | | | 2014 | | 2013 |
Supplemental financial data (in thousands): | | | | | | | | | | | |
| | | | | | | | | | |
|
Share-based compensation: | | | | | | | | | | | |
| | | | | | | | | | |
|
Cost of revenues
| |
$
|
464
| | |
$
|
498
| | |
$
|
499
| | | |
$
|
1,466
| | |
$
|
1,518
| |
General and administrative
| | |
1,174
| | | |
1,165
| | | |
1,591
| | | | |
3,539
| | | |
4,817
| |
Sales and marketing
| | |
567
| | | |
601
| | | |
638
| | | | |
1,693
| | | |
1,896
| |
Research and development
| |
|
382
|
| |
|
370
|
| |
|
495
|
| | |
|
1,102
|
| |
|
1,569
|
|
| | | | | | | | | | |
|
Total share-based compensation
| |
$
|
2,587
|
| |
$
|
2,634
|
| |
$
|
3,223
|
| | |
$
|
7,800
|
| |
$
|
9,800
|
|
| | | | | | | | | | |
|
Depreciation and amortization: | | | | | | | | | | | |
| | | | | | | | | | |
|
Network-related depreciation
| |
$
|
4,207
| | |
$
|
4,144
| | |
$
|
5,278
| | | |
$
|
12,688
| | |
$
|
18,078
| |
Other depreciation and amortization
| | |
566
| | | |
639
| | | |
722
| | | | |
1,934
| | | |
2,164
| |
Amortization of intangible assets
| |
|
259
|
| |
|
338
|
| |
|
711
|
| | |
|
934
|
| |
|
2,161
|
|
| | | | | | | | | | |
|
Total depreciation and amortization
| |
$
|
5,032
|
| |
$
|
5,121
|
| |
$
|
6,711
|
| | |
$
|
15,556
|
| |
$
|
22,403
|
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
Net (decrease) increase in cash, cash equivalents and marketable
securities:
| |
$
|
(6,200
|
)
| |
$
|
(4,921
|
)
| |
$
|
(6,603
|
)
| | |
$
|
(17,212
|
)
| |
$
|
(15,702
|
)
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
End of period statistics: | | | | | | | | | | | |
| | | | | | | | | | |
|
Approximate number of active customers
| | |
1,134
| | | |
1,186
| | | |
1,341
| | | | |
1,134
| | | |
1,341
| |
| | | | | | | | | | |
|
Number of employees
| | |
509
| | | |
477
| | | |
508
| | | | |
509
| | | |
508
| |
|
LIMELIGHT NETWORKS, INC. |
SUMMARY OF RECLASSIFICATIONS |
(In thousands) |
(Unaudited) |
|
| |
| |
| | | |
|
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| | 2013 | | 2013 |
Summary of reclassifications (in thousands): | | | | |
| | | |
|
Cost of services | | | | |
As previously reported
| |
$
|
21,773
| | |
$
|
65,696
| |
Reclassification
| |
|
365
|
| |
|
1,025
|
|
After Reclassification
| |
$
|
22,138
|
| |
$
|
66,721
|
|
| | | |
|
Total cost of revenue | | | | |
As previously reported
| |
$
|
27,051
| | |
$
|
83,774
| |
Reclassification
| |
|
365
|
| |
|
1,025
|
|
After reclassifications
| |
$
|
27,416
|
| |
$
|
84,799
|
|
| | | |
|
Gross profit | | | | |
As previously reported
| |
$
|
15,605
| | |
$
|
47,458
| |
Reclassifications
| |
|
(365
|
)
| |
|
(1,025
|
)
|
After reclassifications
| |
$
|
15,240
|
| |
$
|
46,433
|
|
| | | |
|
General and administrative | | | | |
As previously reported
| |
$
|
8,609
| | |
$
|
25,047
| |
Reclassifications
| |
|
(365
|
)
| |
|
(1,025
|
)
|
After reclassifications
| |
$
|
8,244
|
| |
$
|
24,022
|
|
| | | |
|
Total operating expenses | | | | |
As previously reported
| |
$
|
25,828
| | |
$
|
77,731
| |
Reclassifications
| |
|
(365
|
)
| |
|
(1,025
|
)
|
After reclassifications
| |
$
|
25,463
|
| |
$
|
76,706
|
|
|
LIMELIGHT NETWORKS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
(Unaudited) |
|
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | |
|
| | | | Three Months Ended | | Nine Months Ended |
| | | | | | | | | | | |
|
| | | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| | | | 2014 | | 2014 | | 2013 | | 2014 | | 2013 |
| | | | | | | | | | | |
|
Operating activities | | | | | | | | | | |
|
Net loss
| |
$
|
(5,075
|
)
| |
$
|
(6,869
|
)
| |
$
|
(10,918
|
)
| |
$
|
(19,584
|
)
| |
$
|
(30,288
|
)
|
|
Income (loss) from discontinued operations
| |
|
(4
|
)
| |
|
269
|
| |
|
(15
|
)
| |
|
265
|
| |
|
(15
|
)
|
|
Net loss from continuing operations
| | |
(5,071
|
)
| | |
(7,138
|
)
| | |
(10,903
|
)
| | |
(19,849
|
)
| | |
(30,273
|
)
|
| | | | | | | | | | | |
|
|
Adjustments to reconcile net loss from continuing operations to net
cash provided by (used in) operating activities of continuing
operations:
| | | | | | | |
| |
Depreciation and amortization
| | |
5,032
| | | |
5,121
| | | |
6,711
| | | |
15,556
| | | |
22,403
| |
| |
Share-based compensation
| | |
2,587
| | | |
2,634
| | | |
3,223
| | | |
7,800
| | | |
9,800
| |
| |
Deferred income taxes
| | |
17
| | | |
(179
|
)
| | |
80
| | | |
(185
|
)
| | |
(209
|
)
|
| |
Foreign currency remeasurement (gain) loss
| | |
(1,207
|
)
| | |
152
| | | |
641
| | | |
(1,067
|
)
| | |
(504
|
)
|
| |
Loss on sale of property and equipment
| | |
-
| | | |
-
| | | |
3
| | | |
-
| | | |
25
| |
| |
Accounts receivable charges
| | |
(29
|
)
| | |
352
| | | |
225
| | | |
483
| | | |
758
| |
| |
Amortization of premium on marketable securities
| | |
88
| | | |
113
| | | |
182
| | | |
374
| | | |
462
| |
| |
Non cash tax benefit associated with income from discontinued
operations
| | |
-
| | | |
(59
|
)
| | |
-
| | | |
(59
|
)
| | |
-
| |
| |
Changes in operating assets and liabilities:
| | | | | | | | | | |
| |
Accounts receivable
| | |
1,652
| | | |
(1,169
|
)
| | |
(1,398
|
)
| | |
(1,496
|
)
| | |
177
| |
| |
Prepaid expenses and other current assets
| | |
(1,617
|
)
| | |
1,645
| | | |
(33
|
)
| | |
(1,045
|
)
| | |
1,930
| |
| |
Income taxes receivable
| | |
(53
|
)
| | |
129
| | | |
(17
|
)
| | |
55
| | | |
131
| |
| |
Other assets
| | |
63
| | | |
311
| | | |
341
| | | |
991
| | | |
908
| |
| |
Accounts payable
| | |
1,466
| | | |
(512
|
)
| | |
252
| | | |
4,762
| | | |
1,102
| |
| |
Deferred revenue
| | |
(86
|
)
| | |
24
| | | |
(827
|
)
| | |
(893
|
)
| | |
256
| |
| |
Other current liabilities
| | |
(844
|
)
| | |
153
| | | |
803
| | | |
(3,663
|
)
| | |
(436
|
)
|
| |
Income taxes payable
| | |
(95
|
)
| | |
(13
|
)
| | |
96
| | | |
(214
|
)
| | |
456
| |
| |
Other long term liabilities
| |
|
(310
|
)
| |
|
(62
|
)
| |
|
(166
|
)
| |
|
(545
|
)
| |
|
(448
|
)
|
|
Net cash provided by (used in) operating activities
| |
|
1,593
|
| |
|
1,502
|
| |
|
(787
|
)
| |
|
1,005
|
| |
|
6,538
|
|
| | | | | | | | | | | |
|
Investing activities | | | | | | | | | | |
| |
Purchases of marketable securities
| | |
(2,986
|
)
| | |
(9,486
|
)
| | |
(3,841
|
)
| | |
(17,669
|
)
| | |
(49,811
|
)
|
| |
Maturities of marketable securities
| | |
2,685
| | | |
8,485
| | | |
7,426
| | | |
15,550
| | | |
35,321
| |
| |
Purchases of property and equipment
| | |
(5,075
|
)
| | |
(5,844
|
)
| | |
(5,563
|
)
| | |
(13,984
|
)
| | |
(12,685
|
)
|
| |
Proceeds from sale of discontinued operations
| |
|
-
|
| |
|
414
|
| |
|
5
|
| |
|
414
|
| |
|
124
|
|
|
Net cash used in investing activities
| |
|
(5,376
|
)
| |
|
(6,431
|
)
| |
|
(1,973
|
)
| |
|
(15,689
|
)
| |
|
(27,051
|
)
|
| | | | | | | | | | | |
|
Financing activities | | | | | | | | | | |
| |
Payments on capital lease obligations
| | |
(89
|
)
| | |
(163
|
)
| | |
(278
|
)
| | |
(412
|
)
| | |
(1,124
|
)
|
| |
Proceeds from exercise of stock options and employee stock plan
| | |
233
| | | |
617
| | | |
27
| | | |
967
| | | |
29
| |
| |
Cash paid for purchase of common stock
| | |
(1,296
|
)
| | |
(1,204
|
)
| | |
-
| | | |
(2,500
|
)
| | |
(5,512
|
)
|
| |
Payment of employee tax withholdings related to restricted stock
| |
|
(284
|
)
| |
|
(307
|
)
| |
|
(180
|
)
| |
|
(1,455
|
)
| |
|
(2,309
|
)
|
|
Net cash used in financing activities
| |
|
(1,436
|
)
| |
|
(1,057
|
)
| |
|
(431
|
)
| |
|
(3,400
|
)
| |
|
(8,916
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
|
(1,153
|
)
| |
|
176
|
| |
|
310
|
| |
|
(840
|
)
| |
|
(256
|
)
|
Discontinued Operations | | | | | | | | | | |
|
Cash used in operating activities of discontinued operations
| |
|
(4
|
)
| |
|
-
|
| |
|
(8
|
)
| |
|
(4
|
)
| |
|
(8
|
)
|
Net (decrease) increase in cash and cash equivalents | | |
(6,376
|
)
| | |
(5,810
|
)
| | |
(2,889
|
)
| | |
(18,928
|
)
| | |
(29,693
|
)
|
Cash and cash equivalents, beginning of period | |
|
73,404
|
| |
|
79,214
|
| |
|
82,111
|
| |
|
85,956
|
| |
|
108,915
|
|
Cash and cash equivalents, end of period | |
$
|
67,028
|
| |
$
|
73,404
|
| |
$
|
79,222
|
| |
$
|
67,028
|
| |
$
|
79,222
|
|
| | | | | | | | | | | | | | | | | | | |
|
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 (loss) on sale of WCM business and discontinued
operations. We define EBITDA as GAAP net income (loss) before interest
income, interest expense, gain (loss) on sale of 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.
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 | | Nine Months Ended |
| | | | | | | | | |
|
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| | 2014 | | 2014 | | 2013 | | 2014 | | 2013 |
| | | | | | | | | |
|
U.S. GAAP net loss
| |
$
|
(5,075
|
)
| |
$
|
(6,869
|
)
| |
$
|
(10,918
|
)
| |
$
|
(19,584
|
)
| |
$
|
(30,288
|
)
|
| | | | | | | | | |
|
Share-based compensation
| | |
2,587
| | | |
2,634
| | | |
3,223
| | | |
7,800
| | | |
9,800
| |
Litigation defense expenses
| | |
10
| | | |
536
| | | |
149
| | | |
819
| | | |
299
| |
Amortization of intangible assets
| | |
259
| | | |
338
| | | |
711
| | | |
934
| | | |
2,161
| |
Loss on sale of the Web Content Management business
| | |
-
| | | |
-
| | | |
-
| | | |
62
| | | |
-
| |
Acquisition related expenses
| | |
-
| | | |
-
| | | |
146
| | | |
-
| | | |
113
| |
Loss (income) from discontinued operations
| |
|
4
|
| |
|
(269
|
)
| |
|
15
|
| |
|
(265
|
)
| |
|
15
|
|
| | | | | | | | | |
|
Non-GAAP net loss
| |
$
|
(2,215
|
)
| |
$
|
(3,630
|
)
| |
$
|
(6,674
|
)
| |
$
|
(10,234
|
)
| |
$
|
(17,900
|
)
|
| | | | | | | | | |
|
| | | | | | | | | |
|
Includes the correction of approximately $1.1 million in over
billings by a co-location provider recorded as a reduction in cost
of revenues in the three and nine months ended September 30, 2014.
|
|
LIMELIGHT NETWORKS, INC. |
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA |
(In thousands) |
(Unaudited) |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | |
|
| | | Three Months Ended | | Nine Months Ended |
| | | | | | | | | | |
|
| | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| | | 2014 | | 2014 | | 2013 | | 2014 | | 2013 |
| | | | | | | | | | |
|
U.S. GAAP net loss
| |
$
|
(5,075
|
)
| |
$
|
(6,869
|
)
| |
$
|
(10,918
|
)
| |
$
|
(19,584
|
)
| |
$
|
(30,288
|
)
|
| | | | | | | | | | |
|
|
Depreciation and amortization
| | |
5,032
| | | |
5,121
| | | |
6,711
| | | |
15,556
| | | |
22,403
| |
|
Interest expense
| | |
7
| | | |
7
| | | |
15
| | | |
26
| | | |
64
| |
|
Loss on sale of the Web Content Management business
| | |
-
| | | |
-
| | | |
-
| | | |
62
| | | |
-
| |
|
Interest and other (income) expense
| | |
(1,258
|
)
| | |
128
| | | |
468
| | | |
(1,279
|
)
| | |
(392
|
)
|
|
Income tax provision
| | |
98
| | | |
27
| | | |
197
| | | |
181
| | | |
328
| |
|
Loss (income) from discontinued operations
| |
|
4
|
| |
|
(269
|
)
| |
|
15
|
| |
|
(265
|
)
| |
|
15
|
|
| | | | | | | | | | |
|
EBITDA from continuing operations
| | |
(1,192
|
)
| | |
(1,855
|
)
| | |
(3,512
|
)
| | |
(5,303
|
)
| | |
(7,870
|
)
|
| | | | | | | | | | |
|
|
Share-based compensation
| | |
2,587
| | | |
2,634
| | | |
3,223
| | | |
7,800
| | | |
9,800
| |
|
Litigation defense expenses
| | |
10
| | | |
536
| | | |
149
| | | |
819
| | | |
299
| |
|
Acquisition related expenses
| |
|
-
|
| |
|
-
|
| |
|
146
|
| |
|
-
|
| |
|
113
|
|
| | | | | | | | | | |
|
Adjusted EBITDA
| |
$
|
1,405
|
| |
$
|
1,315
|
| |
$
|
6
|
| |
$
|
3,316
|
| |
$
|
2,342
|
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
Includes the correction of approximately $1.1 million in over
billings by a co-location provider recorded as a reduction in cost
of revenues in the three and nine months ended September 30, 2014.
|
|
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.

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20141110006467/en/
Limelight Networks, Inc.
Sajid Malhotra, 602-850-5778
ir@llnw.com
or
famaPR
on behalf of Limelight Networks
Amy Peterson, 617-986-5020
limelight@famapr.com
Source: Limelight Networks, Inc.