- 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
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,
602-850-5000ir@llnw.comorfamaPR on behalf of Limelight NetworksAmy
Peterson, 617-986-5020limelight@famapr.com
Grafico Azioni Limelight Networks (NASDAQ:LLNW)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Limelight Networks (NASDAQ:LLNW)
Storico
Da Set 2023 a Set 2024