-
Q4 Revenue of $40.7 million and $0.05 net loss per basic share
-
Non-GAAP net loss of $0.02 per basic share
- $93.1 million of cash, cash equivalents and marketable securities
-
2015 revenue expected to be between $156 and $164 million
TEMPE, Ariz.--(BUSINESS WIRE)--
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in
digital content delivery, today reported revenue of $40.7 million for
the fourth quarter which ended December 31, 2014, compared to $42.2
million in the fourth quarter of 2013 and $39.0 million in the third
quarter of 2014.
Fourth quarter 2013 included $2.9 million of revenue from the Company’s
Web Content Management (WCM) business divested in December 2013. Netflix
revenue was $4.5 million in the fourth quarter of 2013, and $1.2 million
in the third quarter of 2014. Revenue was negatively impacted by foreign
exchange fluctuations of $0.4 million from the fourth quarter of 2013
and $0.5 million from the third quarter of 2014.
On a GAAP basis, the Company reported a loss from continuing operations
of $5.0 million or $0.05 per basic share for the fourth quarter of 2014,
compared to a loss from continuing operations of $4.7 million, or $0.05
per basic share in the fourth quarter of 2013. Fourth quarter 2013
included a $3.8 million gain from the sale of WCM.
Non-GAAP net loss was $2.1 million or $0.02 per basic share for the
fourth quarter of 2014 compared to a non-GAAP net loss of $5.1 million
or $0.05 per basic share in the fourth quarter of 2013.
EBITDA from continuing operations was negative $1.2 million for the
fourth quarter of 2014 compared to negative $2.9 million for the fourth
quarter of 2013. Adjusted EBITDA was positive $1.5 million for the
fourth quarter of 2014 compared to negative $0.1 million for the fourth
quarter of 2013.
For the full year ending December 31, 2014, the Company reported revenue
of $162.3 million compared to $173.4 million for the year ending on
December 31, 2013. Revenue in 2013 included $12.5 million from the WCM
business, and $20.2 million from Netflix. Revenue in 2014 included $11.3
million of Netflix revenues.
On a GAAP basis, the Company reported a loss from continuing operations
of $24.9 million, or $0.25 per basic share for the year ended December
31, 2014, compared to a loss from continuing operations of $35.0
million, or $0.36 per basic share in the same period of 2013.
Non-GAAP net loss was $12.3 million, or $0.13 per basic share for the
year ended December 31, 2014, compared to a non-GAAP net loss of $23.0
million or $0.24 per basic share in the same period of 2013.
During the fourth quarter of 2014, Limelight purchased 0.8 million
shares under its repurchase authorization in the open market at an
average price of $2.83, for a total of $2.0 million. The Company has
$10.3 million remaining under its previously announced repurchase
authorization.
Limelight ended the fourth quarter with 520 employees, up from 509
employees at the end of the third quarter of 2014, and up from 482
employees in the year ago period.
Based on current conditions, the Company is providing revenue guidance
of between $156 million and $164 million for 2015. To support the growth
opportunities, the Company expects higher capital expenditures in 2015,
compared to 2014. Non-GAAP net loss is expected to be between $0.10 and
$0.20 per share.
Commenting on the fourth quarter and full year results, Chief Executive
Officer Robert Lento said, “We ended the year on a strong note with
rising confidence and positive business momentum. Our focus on revenue
capture, operational efficiency, a customer centric engagement model,
and employee retention is having a definite impact, and this is
reflected in our improving performance.”
He added, “We are entering 2015 with an improved market position, a
richer set of product capabilities, a stronger team to take these to the
market, and a recovering set of business and financial metrics. As
reflected in our guidance, we expect to build on this momentum and
further advance our operational and financial profile. Our priorities
remain unchanged and our resolve is stronger. We will be working hard to
make 2015 materially better than 2014 for our customers, our employees
and for our shareholders. Our industry is healthy and our position in it
is advancing.”
Financial Tables
LIMELIGHT NETWORKS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except per share data) |
|
|
| |
|
| |
| | | December 31, | | | December 31, |
| | | 2014 | | | 2013 |
| | | (Unaudited) | | | |
ASSETS | | | | | | |
Current assets:
| | | | | | |
Cash and cash equivalents
| | |
$
|
57,767
| | | |
$
|
85,956
| |
Marketable securities
| | | |
35,317
| | | | |
32,506
| |
Accounts receivable, net
| | | |
22,622
| | | | |
21,430
| |
Income taxes receivable
| | | |
237
| | | | |
371
| |
Deferred income taxes
| | | |
78
| | | | |
93
| |
Prepaid expenses and other current assets
| | |
|
9,625
|
| | |
|
8,192
|
|
Total current assets
| | | |
125,646
| | | | |
148,548
| |
Property and equipment, net
| | | |
32,636
| | | | |
32,905
| |
Marketable securities, less current portion
| | | |
40
| | | | |
46
| |
Deferred income taxes, less current portion
| | | |
1,364
| | | | |
1,307
| |
Goodwill
| | | |
76,133
| | | | |
77,035
| |
Other intangible assets, net
| | | |
1,071
| | | | |
2,354
| |
Other assets
| | |
|
4,451
|
| | |
|
6,103
|
|
Total assets
| | |
$
|
241,341
|
| | |
$
|
268,298
|
|
| | | | | |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
Current liabilities:
| | | | | | |
Accounts payable
| | |
$
|
7,065
| | | |
$
|
5,473
| |
Deferred revenue
| | | |
3,509
| | | | |
3,523
| |
Capital lease obligations
| | | |
223
| | | | |
466
| |
Income taxes payable
| | | |
248
| | | | |
799
| |
Other current liabilities
| | |
|
14,383
|
| | |
|
15,022
|
|
Total current liabilities
| | | |
25,428
| | | | |
25,283
| |
Capital lease obligations, less current portion
| | | |
135
| | | | |
358
| |
Deferred income taxes
| | | |
170
| | | | |
321
| |
Deferred revenue, less current portion
| | | |
405
| | | | |
1,500
| |
Other long-term liabilities
| | |
|
3,040
|
| | |
|
3,505
|
|
Total liabilities
| | | |
29,178
| | | | |
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
December 31, 2014 and December 31, 2013; 98,409 and 97,677
shares issued and outstanding at December 31, 2014 and December
31, 2013, respectively
| | | |
98
| | | | |
98
| |
Additional paid-in capital
| | | |
464,294
| | | | |
458,748
| |
Accumulated other comprehensive loss
| | | |
(7,786
|
)
| | | |
(1,663
|
)
|
Accumulated deficit
| | |
|
(244,443
|
)
| | |
|
(219,852
|
)
|
Total stockholders' equity
| | |
|
212,163
|
| | |
|
237,331
|
|
Total liabilities and stockholders' equity
| | |
$
|
241,341
|
| | |
$
|
268,298
|
|
| | | | | | | | | |
|
| | | | | | | | | |
|
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, | | Percent | | December 31, | | Percent | | | December 31, | | December 31, | | Percent |
| | | 2014 | | 2014 | | Change | | 2013 | | Change | | | 2014 | | 2013 | | Change |
| | | | | | | | | | | | | | | | | |
|
Revenues
| | |
$
|
40,727
|
| |
$
|
39,020
|
| |
4
|
%
| |
$
|
42,200
|
| |
-3
|
%
| | |
$
|
162,259
|
| |
$
|
173,433
|
| |
-6
|
%
|
Cost of revenue:
| | | | | | | | | | | | | | | | | | |
Cost of services (1)
| | | |
20,613
| | | |
18,672
| | |
10
|
%
| | |
22,061
| | |
-7
|
%
| | | |
82,176
| | | |
88,783
| | |
-7
|
%
|
Depreciation - network
| | |
|
3,985
|
| |
|
4,207
|
| |
-5
|
%
| |
|
4,864
|
| |
-18
|
%
| | |
|
16,673
|
| |
|
22,942
|
| |
-27
|
%
|
Total cost of revenue
| | |
|
24,598
|
| |
|
22,879
|
| |
8
|
%
| |
|
26,925
|
| |
-9
|
%
| | |
|
98,849
|
| |
|
111,725
|
| |
-12
|
%
|
Gross profit
| | | |
16,129
| | | |
16,141
| | |
0
|
%
| | |
15,275
| | |
6
|
%
| | | |
63,410
| | | |
61,708
| | |
3
|
%
|
Gross profit percentage
| | | |
39.6
|
%
| | |
41.4
|
%
| | | | |
36.2
|
%
| | | | | |
39.1
|
%
| | |
35.6
|
%
| | |
Operating expenses:
| | | | | | | | | | | | | | | | | | |
General and administrative (1)
| | | |
6,210
| | | |
7,295
| | |
-15
|
%
| | |
7,882
| | |
-21
|
%
| | | |
28,176
| | | |
31,904
| | |
-12
|
%
|
Sales and marketing (1)
| | | |
9,103
| | | |
8,731
| | |
4
|
%
| | |
9,929
| | |
-8
|
%
| | | |
37,458
| | | |
41,474
| | |
-10
|
%
|
Research & development (1)
| | | |
6,014
| | | |
5,514
| | |
9
|
%
| | |
5,189
| | |
16
|
%
| | | |
20,965
| | | |
22,003
| | |
-5
|
%
|
Depreciation and amortization
| | |
|
661
|
| |
|
825
|
| |
-20
|
%
| |
|
1,479
|
| |
-55
|
%
| | |
|
3,529
|
| |
|
5,804
|
| |
-39
|
%
|
Total operating expenses
| | |
|
21,988
|
| |
|
22,365
|
| |
-2
|
%
| |
|
24,479
|
| |
-10
|
%
| | |
|
90,128
|
| |
|
101,185
|
| |
-11
|
%
|
| | | | | | | | | | | | | | | | | |
|
Operating loss
| | | |
(5,859
|
)
| | |
(6,224
|
)
| |
-6
|
%
| | |
(9,204
|
)
| |
-36
|
%
| | | |
(26,718
|
)
| | |
(39,477
|
)
| |
-32
|
%
|
| | | | | | | | | | | | | | | | | |
|
Other income (expense):
| | | | | | | | | | | | | | | | | | |
Interest expense
| | | |
(6
|
)
| | |
(7
|
)
| |
-14
|
%
| | |
(12
|
)
| |
-50
|
%
| | | |
(32
|
)
| | |
(76
|
)
| |
-58
|
%
|
Interest income
| | | |
73
| | | |
66
| | |
11
|
%
| | |
82
| | |
-11
|
%
| | | |
276
| | | |
321
| | |
-14
|
%
|
Other, net
| | |
|
807
|
| |
|
1,192
|
| |
-32
|
%
| |
|
4,489
|
| |
-82
|
%
| | |
|
1,821
|
| |
|
4,643
|
| |
-61
|
%
|
Total other income (expense)
| | |
|
874
|
| |
|
1,251
|
| |
-30
|
%
| |
|
4,559
|
| |
-81
|
%
| | |
|
2,065
|
| |
|
4,888
|
| |
-58
|
%
|
| | | | | | | | | | | | | | | | | |
|
Loss from continuing operations before income taxes
| | | |
(4,985
|
)
| | |
(4,973
|
)
| |
0
|
%
| | |
(4,645
|
)
| |
7
|
%
| | | |
(24,653
|
)
| | |
(34,589
|
)
| |
-29
|
%
|
Income tax provision
| | |
|
22
|
| |
|
98
|
| |
-78
|
%
| |
|
59
|
| |
-63
|
%
| | |
|
203
|
| |
|
387
|
| |
-48
|
%
|
| | | | | | | | | | | | | | | | | |
|
Loss from continuing operations
| | | |
(5,007
|
)
| | |
(5,071
|
)
| |
-1
|
%
| | |
(4,704
|
)
| |
6
|
%
| | | |
(24,856
|
)
| | |
(34,976
|
)
| |
-29
|
%
|
| | | | | | | | | | | | | | | | | |
|
Discontinued operations:
| | | | | | | | | | | | | | | | | | |
(Loss) income from discontinued operations, net of income taxes
| | |
|
-
|
| |
|
(4
|
)
| |
-100
|
%
| |
|
(411
|
)
| |
-100
|
%
| | |
|
265
|
| |
|
(426
|
)
| |
-162
|
%
|
| | | | | | | | | | | | | | | | | |
|
Net loss
| | |
$
|
(5,007
|
)
| |
$
|
(5,075
|
)
| |
-1
|
%
| |
$
|
(5,115
|
)
| |
-2
|
%
| | |
$
|
(24,591
|
)
| |
$
|
(35,402
|
)
| |
-31
|
%
|
| | | | | | | | | | | | | | | | | |
|
Net loss per share:
| | | | | | | | | | | | | | | | | | |
Basic and diluted
| | | | | | | | | | | | | | | | | | |
Continuing operations
| | |
$
|
(0.05
|
)
| |
$
|
(0.05
|
)
| | | |
$
|
(0.05
|
)
| | | | |
$
|
(0.25
|
)
| |
$
|
(0.36
|
)
| | |
Discontinued operations
| | |
$
|
-
|
| |
$
|
(0.00
|
)
| | | |
$
|
(0.00
|
)
| | | | |
$
|
0.00
|
| |
$
|
(0.01
|
)
| | |
Total
| | |
$
|
(0.05
|
)
| |
$
|
(0.05
|
)
| | | |
$
|
(0.05
|
)
| | | | |
$
|
(0.25
|
)
| |
$
|
(0.37
|
)
| | |
| | | | | | | | | | | | | | | | | |
|
Weighted average shares used in per share calculation:
| | | | | | | | | | | | | | | | | | |
Basic and diluted
| | | |
98,637
| | | |
98,458
| | | | | |
97,380
| | | | | | |
98,365
| | | |
96,851
| | | |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
(1) Includes share-based compensation (see supplemental table for
figures)
|
|
|
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, |
| | | 2014 | | 2014 | | 2013 | | | 2014 | | 2013 |
Supplemental financial data (in thousands): | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Share-based compensation: | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Cost of services
| | |
$
|
490
| | |
$
|
464
| | |
$
|
356
| | |
$
|
1,956
| | |
$
|
1,873
| |
General and administrative
| | | |
1,202
| | | |
1,174
| | | |
1,154
| | | |
4,741
| | | |
5,971
| |
Sales and marketing
| | | |
624
| | | |
567
| | | |
348
| | | |
2,317
| | | |
2,245
| |
Research and development
| | |
|
375
|
| |
|
382
|
| |
|
687
| | |
|
1,477
|
| |
|
2,256
|
|
| | | | | | | | | | | |
|
Total share-based compensation
| | |
$
|
2,691
|
| |
$
|
2,587
|
| |
$
|
2,545
| | |
$
|
10,491
|
| |
$
|
12,345
|
|
| | | | | | | | | | | |
|
Depreciation and amortization: | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Network-related depreciation
| | |
$
|
3,985
| | |
$
|
4,207
| | |
$
|
4,864
| | |
$
|
16,673
| | |
$
|
22,942
| |
Other depreciation and amortization
| | | |
457
| | | |
566
| | | |
797
| | | |
2,391
| | | |
2,961
| |
Amortization of intangible assets
| | |
|
204
|
| |
|
259
|
| |
|
682
| | |
|
1,138
|
| |
|
2,843
|
|
| | | | | | | | | | | |
|
Total depreciation and amortization
| | |
$
|
4,646
|
| |
$
|
5,032
|
| |
$
|
6,343
| | |
$
|
20,202
|
| |
$
|
28,746
|
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
Net (decrease) increase in cash, cash equivalents and marketable
securities:
| | |
$
|
(8,172
|
)
| |
$
|
(6,200
|
)
| |
$
|
6,237
| | |
$
|
(25,384
|
)
| |
$
|
(9,465
|
)
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
End of period statistics: | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Approximate number of active customers
| | | |
1,095
| | | |
1,134
| | | |
1,295
| | | |
1,095
| | | |
1,295
| |
| | | | | | | | | | | |
|
Number of employees
| | | |
520
| | | |
509
| | | |
482
| | | |
520
| | | |
482
| |
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
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, |
| | | | | 2014 | | 2014 | | 2013 | | | 2014 | | 2013 |
| | | | | | | | | | | | | |
|
Operating activities | | | | | | | | | | | | |
|
Net loss
| | |
$
|
(5,007
|
)
| |
$
|
(5,075
|
)
| |
$
|
(5,115
|
)
| | |
$
|
(24,591
|
)
| |
$
|
(35,402
|
)
|
|
(Loss) income from discontinued operations
| | |
|
-
|
| |
|
(4
|
)
| |
|
(411
|
)
| | |
|
265
|
| |
|
(426
|
)
|
|
Net loss from continuing operations
| | | |
(5,007
|
)
| | |
(5,071
|
)
| | |
(4,704
|
)
| | | |
(24,856
|
)
| | |
(34,976
|
)
|
| | | | | | | | | | | | | |
|
|
Adjustments to reconcile net loss from continuing operations to net
cash (used in) provided by operating activities of continuing
operations:
| | | | | | | | | |
| |
Depreciation and amortization
| | | |
4,646
| | | |
5,032
| | | |
6,343
| | | | |
20,202
| | | |
28,746
| |
| |
Share-based compensation
| | | |
2,691
| | | |
2,587
| | | |
2,545
| | | | |
10,491
| | | |
12,345
| |
| |
Deferred income taxes
| | | |
(174
|
)
| | |
17
| | | |
(119
|
)
| | | |
(359
|
)
| | |
(328
|
)
|
| |
Foreign currency remeasurement gain
| | | |
(1,100
|
)
| | |
(1,207
|
)
| | |
(27
|
)
| | | |
(2,167
|
)
| | |
(531
|
)
|
| |
Loss on disposal of property and equipment
| | | |
-
| | | |
-
| | | |
417
| | | | |
-
| | | |
442
| |
| |
Accounts receivable charges
| | | |
(75
|
)
| | |
(29
|
)
| | |
206
| | | | |
408
| | | |
965
| |
| |
Amortization of premium on marketable securities
| | | |
85
| | | |
88
| | | |
176
| | | | |
459
| | | |
639
| |
| |
Non cash tax benefit associated with sale of discontinued operations
| | | |
-
| | | |
-
| | | |
-
| | | | |
(59
|
)
| | |
-
| |
| |
Gain on sale of the Web Content Management business
| | | |
-
| | | |
-
| | | |
(3,836
|
)
| | | |
-
| | | |
(3,836
|
)
|
| |
Changes in operating assets and liabilities:
| | | | | | | | | | | | |
| |
Accounts receivable
| | | |
(104
|
)
| | |
1,652
| | | |
2,404
| | | | |
(1,600
|
)
| | |
2,581
| |
| |
Prepaid expenses and other current assets
| | | |
(747
|
)
| | |
(1,617
|
)
| | |
(707
|
)
| | | |
(1,792
|
)
| | |
1,222
| |
| |
Income taxes receivable
| | | |
95
| | | |
(53
|
)
| | |
(27
|
)
| | | |
150
| | | |
105
| |
| |
Other assets
| | | |
616
| | | |
63
| | | |
(390
|
)
| | | |
1,607
| | | |
519
| |
| |
Accounts payable
| | | |
(2,486
|
)
| | |
1,466
| | | |
(3,293
|
)
| | | |
2,276
| | | |
(2,192
|
)
|
| |
Deferred revenue
| | | |
(216
|
)
| | |
(86
|
)
| | |
(252
|
)
| | | |
(1,109
|
)
| | |
4
| |
| |
Other current liabilities
| | | |
1,509
| | | |
(844
|
)
| | |
822
| | | | |
(2,154
|
)
| | |
384
| |
| |
Income taxes payable
| | | |
(19
|
)
| | |
(95
|
)
| | |
(149
|
)
| | | |
(233
|
)
| | |
305
| |
| |
Other long term liabilities
| | |
|
(251
|
)
| |
|
(310
|
)
| |
|
(350
|
)
| | |
|
(796
|
)
| |
|
(798
|
)
|
|
Net cash (used in) provided by operating activities of continuing
operations
| | |
|
(537
|
)
| |
|
1,593
|
| |
|
(941
|
)
| | |
|
468
|
| |
|
5,596
|
|
| | | | | | | | | | | | | |
|
Investing activities | | | | | | | | | | | | |
| |
Purchases of marketable securities
| | | |
(7,813
|
)
| | |
(2,986
|
)
| | |
(9,236
|
)
| | | |
(25,482
|
)
| | |
(59,047
|
)
|
| |
Maturities of marketable securities
| | | |
6,600
| | | |
2,685
| | | |
9,580
| | | | |
22,150
| | | |
44,901
| |
| |
Purchases of property and equipment
| | | |
(4,597
|
)
| | |
(5,075
|
)
| | |
(5,890
|
)
| | | |
(18,581
|
)
| | |
(18,575
|
)
|
| |
Proceeds from the sale of cost basis investment
| | | |
-
| | | |
-
| | | |
1,237
| | | | |
-
| | | |
1,237
| |
| |
Proceeds from sale of the Web Content Management business
| | | |
-
| | | |
-
| | | |
12,341
| | | | |
-
| | | |
12,341
| |
| |
Proceeds from the sale of discontinued operations
| | |
|
-
|
| |
|
-
|
| |
|
-
|
| | |
|
414
|
| |
|
124
|
|
|
Net cash (used in) provided by
investing activities of continuing operations
| | |
|
(5,810
|
)
| |
|
(5,376
|
)
| |
|
8,032
|
| | |
|
(21,499
|
)
| |
|
(19,019
|
)
|
| | | | | | | | | | | | | |
|
Financing activities | | | | | | | | | | | | |
| |
Payments on capital lease obligations
| | | |
(54
|
)
| | |
(89
|
)
| | |
(177
|
)
| | | |
(466
|
)
| | |
(1,301
|
)
|
| |
Proceeds from exercise of stock options and employee stock plan
| | | |
414
| | | |
233
| | | |
234
| | | | |
1,381
| | | |
263
| |
| |
Cash paid for purchase of common stock
| | | |
(2,042
|
)
| | |
(1,296
|
)
| | |
-
| | | | |
(4,542
|
)
| | |
(5,512
|
)
|
| |
Payment of employee tax withholdings related to restricted stock
| | |
|
(340
|
)
| |
|
(284
|
)
| |
|
(64
|
)
| | |
|
(1,795
|
)
| |
|
(2,372
|
)
|
|
Net cash used in financing activities of continuing operations
| | |
|
(2,022
|
)
| |
|
(1,436
|
)
| |
|
(7
|
)
| | |
|
(5,422
|
)
| |
|
(8,922
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| | |
|
(892
|
)
| |
|
(1,153
|
)
| |
|
(350
|
)
| | |
|
(1,732
|
)
| |
|
(606
|
)
|
Discontinued Operations | | | | | | | | | | | | |
|
Cash used in operating activities of discontinued operations
| | |
|
-
|
| |
|
(4
|
)
| |
|
-
|
| | |
|
(4
|
)
| |
|
(8
|
)
|
Net (decrease) increase in cash and cash equivalents | | | |
(9,261
|
)
| | |
(6,376
|
)
| | |
6,734
| | | | |
(28,189
|
)
| | |
(22,959
|
)
|
Cash and cash equivalents, beginning of period | | |
|
67,028
|
| |
|
73,404
|
| |
|
79,222
|
| | |
|
85,956
|
| |
|
108,915
|
|
Cash and cash equivalents, end of period | | |
$
|
57,767
|
| |
$
|
67,028
|
| |
$
|
85,956
|
| | |
$
|
57,767
|
| |
$
|
85,956
|
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
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 from continuing operations 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 from continuing operations provides a useful metric
to investors to compare us with other companies within our industry and
across industries. We define Adjusted EBITDA as EBITDA from continuing
operations 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 from continuing operations
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 from continuing operations and Adjusted EBITDA have
limitations as analytical tools, and when assessing our operating
performance, Non-GAAP net income (loss), EBITDA from continuing
operations 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 from continuing operations 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 from continuing operations 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 from continuing operations 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 from continuing operations 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, |
| | | 2014 | | 2014 | | 2013 | | | 2014 | | 2013 |
| | | | | | | | | | | |
|
U.S. GAAP net loss
| | |
$
|
(5,007
|
)
| |
$
|
(5,075
|
)
| |
$
|
(5,115
|
)
| | |
$
|
(24,591
|
)
| |
$
|
(35,402
|
)
|
| | | | | | | | | | | |
|
Share-based compensation
| | | |
2,691
| | | |
2,587
| | | |
2,545
| | | | |
10,491
| | | |
12,345
| |
Litigation defense expenses
| | | |
(3
|
)
| | |
10
| | | |
151
| | | | |
817
| | | |
450
| |
Amortization of intangible assets
| | | |
204
| | | |
259
| | | |
682
| | | | |
1,138
| | | |
2,843
| |
(Gain) loss on sale of the Web Content Management business
| | | |
-
| | | |
-
| | | |
(3,836
|
)
| | | |
62
| | | |
(3,836
|
)
|
Acquisition related expenses
| | | |
-
| | | |
-
| | | |
63
| | | | |
-
| | | |
176
| |
Loss (income) from discontinued operations
| | |
|
-
|
| |
|
4
|
| |
|
411
|
| | |
|
(265
|
)
| |
|
426
|
|
| | | | | | | | | | | |
|
Non-GAAP net loss
| | |
$
|
(2,115
|
)
| |
$
|
(2,215
|
)
| |
$
|
(5,099
|
)
| | |
$
|
(12,348
|
)
| |
$
|
(22,998
|
)
|
| | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
|
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, |
| | | | 2014 | | 2014 | | 2013 | | | 2014 | | 2013 |
| | | | | | | | | | | | |
|
U.S. GAAP net loss
| | |
$
|
(5,007
|
)
| |
$
|
(5,075
|
)
| |
$
|
(5,115
|
)
| | |
$
|
(24,591
|
)
| |
$
|
(35,402
|
)
|
| | | | | | | | | | | | |
|
|
Depreciation and amortization
| | | |
4,646
| | | |
5,032
| | | |
6,343
| | | | |
20,202
| | | |
28,746
| |
|
Interest expense
| | | |
6
| | | |
7
| | | |
12
| | | | |
32
| | | |
76
| |
|
(Gain) loss on sale of the Web Content Management business
| | | |
-
| | | |
-
| | | |
(3,836
|
)
| | | |
62
| | | |
(3,836
|
)
|
|
Interest and other (income) expense
| | | |
(880
|
)
| | |
(1,258
|
)
| | |
(735
|
)
| | | |
(2,159
|
)
| | |
(1,128
|
)
|
|
Income tax provision
| | | |
22
| | | |
98
| | | |
59
| | | | |
203
| | | |
387
| |
|
Loss (income) from discontinued operations
| | |
|
-
|
| |
|
4
|
| |
|
411
|
| | |
|
(265
|
)
| |
|
426
|
|
| | | | | | | | | | | | |
|
EBITDA from continuing operations
| | | |
(1,213
|
)
| | |
(1,192
|
)
| | |
(2,861
|
)
| | | |
(6,516
|
)
| | |
(10,731
|
)
|
| | | | | | | | | | | | |
|
|
Share-based compensation
| | | |
2,691
| | | |
2,587
| | | |
2,545
| | | | |
10,491
| | | |
12,345
| |
|
Litigation defense expenses
| | | |
(3
|
)
| | |
10
| | | |
151
| | | | |
817
| | | |
450
| |
|
Acquisition related expenses
| | |
|
-
|
| |
|
-
|
| |
|
63
|
| | |
|
-
|
| |
|
176
|
|
| | | | | | | | | | | | |
|
Adjusted EBITDA
| | |
$
|
1,475
|
| |
$
|
1,405
|
| |
$
|
(102
|
)
| | |
$
|
4,792
|
| |
$
|
2,240
|
|
| | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
|
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) 2015 Limelight Networks, Inc. All rights reserved. All
product or service names are the property of their respective owners.

Limelight Networks, Inc.
Sajid Malhotra, 602-850-5778
ir@llnw.com
Source: Limelight Networks, Inc.