Limelight Networks(R) Sells EyeWonder Unit to DG(R), Announces Share Repurchase Program, Updates Guidance for Third Quarter 2...
30 Agosto 2011 - 1:48PM
Marketwired
Limelight Networks, Inc. (NASDAQ: LLNW) ("Limelight") today
announced the sale of its EyeWonder rich media advertising unit to
DG (NASDAQ: DGIT) for approximately $66 million in cash after
adjustments. The company also announced a share repurchase program
as well as updated its third quarter 2011 financial guidance as a
result of the EyeWonder transaction.
Sales of EyeWonder In a transaction
expected to close on September 1, DG will acquire the EyeWonder
rich media advertising unit from Limelight. DG plans to combine the
resources of EyeWonder and MediaMind to create a global, at-scale
provider of interactive advertising services. This transaction will
enable Limelight to focus on continuing to grow and invest in its
globally distributed computing platform and its rapidly expanding
software-as-a-service (SaaS) solutions. These solutions include
mobility, web and video content management, web application
acceleration, cloud storage, and consulting.
"Limelight sees a bright future for our SaaS solutions, as they
deepen our relationships with customers by streamlining their
publishing workflows while providing the performance and
operational benefits inherent in cloud applications. These open
solutions also enable customers to monetize their online businesses
using many different sources. Through this transaction, we are
gaining more resources to strengthen the innovation pipeline and
go-to market activities for these high-value, rapidly growing SaaS
solutions and for continuing to scale our core CDN platform upon
which these solutions run," said Jeff Lunsford, chairman and chief
executive officer, Limelight Networks, Inc.
RBC Capital Markets LLC provided Limelight with a fairness
opinion related to this transaction.
Share Repurchase Program
Limelight today announced that its Board of Directors has
approved a $25 million share repurchase program, which it intends
to implement.
"The Board's decision to implement this share repurchase program
reflects our confidence in the growth opportunities ahead for our
CDN and SaaS businesses," commented Lunsford.
Updated Guidance
With the sale of EyeWonder, the Company now anticipates third
quarter revenue to be in the range of $46.1 million to $47.3
million. This revenue range includes EyeWonder revenues through
August 31, 2011. The company expects revenue excluding EyeWonder to
be in the range of $41.5 million to $42.5 million. In addition the
Company anticipates that it will incur transaction and severance
related expenses of approximately $1.6 million during the third
quarter.
Moving forward, the company will use the term "value added
services" to collectively refer to its software-as-a-service
solutions for mobility, web and video content management, web
application acceleration, cloud storage, and consulting. The
company will continue to use the term "core CDN services" to refer
to its services that distribute digital media such as video, music,
games, software and social media.
About Limelight Networks, Inc. Limelight
Networks, Inc. (NASDAQ: LLNW) provides solutions that enable
business and technology decision makers to profit from the shift of
content and advertising to the online world, the explosive growth
of mobile and connected devices, and the migration of IT
applications and services into the cloud. As of Q2, 2011,
approximately 1870 customers worldwide use Limelight's massively
scalable software services to engage audiences, enhance brand
presence, analyze viewer preferences, manage and monetize digital
assets, and ultimately build stronger customer relationships. For
more information, please visit http://www.limelight.com or follow
us on Twitter at www.twitter.com/llnw.
Copyright © 2011 Limelight Networks, Inc. All rights reserved.
All product or service names are the property of their respective
owners.
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CONTACT: Paul Alfieri Limelight Networks, Inc. +1-646-875-8835
palfieri@llnw.com
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