- GAAP Revenue of $41.3 million and $0.07
loss per basic share
- Non-GAAP loss of $0.04 per share
- $107.5 million, or $1.09 per share, of
cash, cash equivalents and marketable securities
Limelight Networks, Inc. (Nasdaq:LLNW) ("Limelight"), a global
leader in digital content delivery, today reported revenue of $41.3
million for the quarter ended June 30, 2014, compared to $42.8
million for the second quarter of 2013 and $41.2 million in the
first quarter of 2014. The second quarter of 2013 included $3.1
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 $7.1 million or $0.07 per basic share for the second
quarter of 2014, compared to a loss of $11.2 million, or $0.12 per
basic and fully diluted share in the same period of 2013.
On a non-GAAP basis, net loss was $3.6 million, or $0.04 per
basic share for the quarter ended June 30, 2014 compared to a
non-GAAP net loss of $7.2 million or $0.07 per basic share in the
second quarter of 2013.
EBITDA from continuing operations for the quarter was negative
$1.9 million. After adjusting for share based compensation,
litigation expense, and acquisition related expenses the Company
reported adjusted EBITDA of $1.3 million compared to an adjusted
EBITDA loss of $0.5 million in the year ago period.
During the quarter, Limelight purchased 0.5 million shares at an
average price of $2.47, in the open market, under its buyback
authorization. The Company has $13.8 million remaining under its
buyback authorization.
Limelight ended the quarter with 477 employees.
Commenting on the quarter, Chief Executive Officer, Robert Lento
said, “I’m pleased with our performance improvements across
multiple measures during the quarter. I’m equally pleased with the
favorable Supreme Court ruling delivered during the quarter.”
“We continue to make investments to advance our infrastructure
capabilities, streamline our business processes flows, improve our
reporting and analytics capabilities, and enhance the customer
experience. We are seeing higher customer satisfaction, lower
customer churn and employee turnover, and improved financial
performance,” he added.
Financial Tables
LIMELIGHT NETWORKS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except per share
data) June 30, December 31,
2014 2013 (Unaudited)
ASSETS Current assets: Cash and cash equivalents $ 73,404 $
85,956 Marketable securities 34,052 32,506 Accounts receivable, net
24,066 21,430 Income taxes receivable 258 371 Deferred income taxes
80 93 Prepaid expenses and other current assets 7,652
8,192 Total current assets 139,512 148,548 Property
and equipment, net 32,562 32,905 Marketable securities, less
current portion 40 46 Deferred income taxes, less current portion
1,476 1,307 Goodwill 77,164 77,035 Other intangible assets, net
1,704 2,354 Other assets 5,188 6,103
Total assets $ 257,646 $ 268,298
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $ 9,282 $ 5,473 Deferred revenue 3,411 3,523
Capital lease obligation 253 466 Income taxes payable 766 799 Other
current liabilities 12,079 15,022 Total
current liabilities 25,791 25,283 Capital lease obligation, less
current portion 248 358 Deferred income taxes 234 321 Deferred
revenue, less current portion 805 1,500 Other long-term liabilities
3,273 3,505 Total liabilities 30,351
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 June 30, 2014 and
December 31, 2013; 98,656 and 97,677 shares issued and outstanding
at June 30, 2014 and December 31, 2013, respectively 99 98
Additional paid-in capital 462,442 458,748 Accumulated other
comprehensive loss (888 ) (1,663 ) Accumulated deficit
(234,358 ) (219,852 ) Total stockholders' equity
227,295 237,331 Total liabilities and
stockholders' equity $ 257,646 $ 268,298
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except per share
data) (Unaudited)
Three Months Ended Six
Months Ended June 30, March 31,
Percent June 30, Percent June 30,
June 30, Percent 2014
2014 Change 2013
Change 2014 2013
Change Revenues $ 41,343 $ 41,170 0 % $
42,763 -3 % $ 82,512 $ 88,576 -7 % Cost of
revenue: Cost of services * + 21,130 21,351 -1 % 22,226 -5 % 42,480
44,583 -5 % Depreciation - network 4,141 4,337
-5 % 6,120 -32 % 8,478
12,800 -34 % Total cost of revenue + 25,271
25,688 -2 % 28,346 -11 % 50,958
57,383 -11 % Gross profit + 16,072 15,482 4 %
14,417 11 % 31,554 31,193 1 % Gross profit percentage 38.9 % 37.6 %
33.7 % 38.2 % 35.2 % Operating expenses: General and administrative
* + 8,452 7,982 6 % 8,009 6 % 16,434 15,778 4 % Sales and marketing
* 8,951 9,725 -8 % 10,699 -16 % 18,676 21,183 -12 % Research &
development * 4,665 4,368 7 % 5,650 -17 % 9,033 11,391 -21 %
Depreciation and amortization 977 1,066
-8 % 1,442 -32 % 2,043 2,892
-29 % Total operating expenses + 23,045
23,141 0 % 25,800 -11 % 46,186
51,244 -10 % Operating loss (6,973 ) (7,659 )
-9 % (11,383 ) -39 % (14,632 ) (20,051 ) -27 % Other income
(expense): Interest expense (7 ) (12 ) -42 % (21 ) -67 % (19 ) (48
) -60 % Interest income 67 70 -4 % 79 -15 % 137 149 -8 % Other, net
(195 ) 17 -1247 % 143 -236 %
(178 ) 711 -125 % Total other (expense) income
(135 ) 75 -280 % 201 -167 %
(60 ) 812 -107 % Loss from continuing
operations before income taxes (7,108 ) (7,584 ) -6 % (11,182 ) -36
% (14,692 ) (19,239 ) -24 % Income tax provision 27
56 -52 % 51 -47 % 83
131 -37 % Loss from continuing operations
(7,135 ) (7,640 ) -7 % (11,233 ) -36 % (14,775 ) (19,370 ) -24 %
Discontinued operations: Income from discontinued
operations, net of income taxes 269 -
NA - NA 269 - NA
Net loss $ (6,866 ) $ (7,640 ) -10 % $ (11,233 ) -39 % $ (14,506 )
$ (19,370 ) -25 % Net loss per share: Basic and diluted
Continuing operations $ (0.07 ) $ (0.08 ) $ (0.12 ) $ (0.15 ) $
(0.20 ) Discontinued operations $ - $ - $ - $
- $ - Total $ (0.07 ) $ (0.08 ) $ (0.12 ) $ (0.15 ) $
(0.20 ) Weighted average shares used in per share
calculation: Basic and diluted 98,419 97,946 96,257 98,183 96,538
* 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 Six Months Ended June
30, March 31, June 30, June 30, June
30, 2014 2014
2013 2014 2013
Supplemental financial data (in thousands):
Share-based compensation: Cost of revenues $ 395 $
424 $ 513 $ 819 $ 1,018 General and administrative 1,518 1,468
1,605 2,986 3,226 Sales and marketing 420 391 595 811 1,258
Research and development 301 296
514 597 1,075 Total
share-based compensation $ 2,634 $ 2,579 $ 3,227
$ 5,213 $ 6,577
Depreciation and
amortization: Network-related depreciation $ 4,141 $
4,337 $ 6,120 $ 8,478 $ 12,800 Other depreciation and amortization
639 729 724 1,368 1,442 Amortization of intangible assets
338 337 718 675
1,450 Total depreciation and amortization $
5,118 $ 5,403 $ 7,562 $ 10,521 $ 15,692
Net (decrease) increase in cash, cash
equivalents and marketable securities: $ (4,921 ) $ (6,091 ) $
(1,341 ) $ (11,012 ) $ (9,099 )
End of period
statistics: Approximate number of active customers 1,186
1,208 1,358 1,186 1,358 Number of employees 477 472 495 477
495
LIMELIGHT NETWORKS, INC. SUMMARY OF
RECLASSIFICATIONS (In thousands) (Unaudited)
Three Months Ended Six Months
Ended June 30, June 30, 2013
2013 Summary of reclassifications (in
thousands): Cost of services As previously
reported 21,870 43,923 Reclassification 356 660 After
Reclassification 22,226 44,583
Total cost
of revenue As previously reported 27,990 56,723
Reclassification 356 660 After reclassifications
28,346 57,383
Gross profit As
previously reported 14,773 31,853 Reclassifications (356 ) (660 )
After reclassifications 14,417 31,193
General and administrative As previously reported 8,365
16,438 Reclassifications (356 ) (660 ) After reclassifications
8,009 15,778
Total operating expenses
As previously reported 26,156 51,904 Reclassifications (356 ) (660
) After reclassifications 25,800 51,244
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
June 30, 2014 2014
2013 2014
2013 Operating activities Net loss $
(6,866 ) $ (7,640 ) $ (11,233 ) $ (14,506 ) $ (19,370 ) Income from
discontinued operations 269 - -
269 - Net loss from continuing
operations (7,135 ) (7,640 ) (11,233 ) (14,775 ) (19,370 )
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities of continuing operations: Depreciation and
amortization 5,118 5,403 7,562 10,521 15,692 Share-based
compensation 2,634 2,579 3,227 5,213 6,577 Deferred income taxes
(179 ) (23 ) (118 ) (202 ) (289 ) Foreign currency remeasurement
loss (gain) 152 (12 ) (284 ) 140 (1,145 ) Loss on sale of property
and equipment - - 22 - 22 Accounts receivable charges 352 160 207
512 533 Amortization of premium on marketable securities 113 173
184 286 280 Non cash tax benefit associated with income from
discontinued operations (59 ) - - (59 ) - Changes in operating
assets and liabilities: Accounts receivable (1,169 ) (1,979 ) 2,835
(3,148 ) 1,575 Prepaid expenses and other current assets 1,645
(1,073 ) 878 572 1,963 Income taxes receivable 129 (21 ) 7 108 148
Other assets 311 617 461 928 567 Accounts payable (512 ) 3,808 946
3,296 850 Deferred revenue 24 (831 ) (615 ) (807 ) 1,083 Other
current liabilities 153 (2,972 ) 708 (2,819 ) (1,239 ) Income taxes
payable (13 ) (106 ) 53 (119 ) 360 Other long term liabilities
(62 ) (173 ) (167 ) (235 ) (282
) Net cash (used in) provided by operating activities of continuing
operations 1,502 (2,090 ) 4,673
(588 ) 7,325
Investing
activities Purchases of marketable securities (9,486 ) (5,197 )
(7,931 ) (14,683 ) (45,970 ) Maturities of marketable securities
8,485 4,380 5,000 12,865 27,895 Purchases of property and equipment
(5,844 ) (3,065 ) (4,519 ) (8,909 ) (7,122 ) Proceeds from sale of
discontinued operations 414 -
119 414 119 Net cash used in
investing activities of continuing operations (6,431 )
(3,882 ) (7,331 ) (10,313 ) (25,078 )
Financing activities Payments on capital lease
obligations (163 ) (160 ) (417 ) (323 ) (846 ) Proceeds from
exercise of stock options and employee stock plan 617 117 2 734 2
Cash paid for purchase of common stock (1,204 ) - - (1,204 ) (5,512
) Payment of employee tax withholdings related to restricted stock
(307 ) (864 ) (771 ) (1,171 )
(2,129 ) Net cash used in financing activities of continuing
operations (1,057 ) (907 ) (1,186 )
(1,964 ) (8,485 ) Effect of exchange rate changes on cash
and cash equivalents 176 137
(208 ) 313 (566 )
Net (decrease) increase
in cash and cash equivalents (5,810 ) (6,742 ) (4,052 ) (12,552
) (26,804 )
Cash and cash equivalents, beginning of period
79,214 85,956 86,163
85,956 108,915
Cash and cash
equivalents, end of period $ 73,404 $ 79,214 $
82,111 $ 73,404 $ 82,111
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 Six Months Ended June
30, March 31, June 30, June 30, June
30, 2014 2014
2013 2014 2013
U.S. GAAP net loss $ (6,866 ) $ (7,640 ) $ (11,233 )
$ (14,506 ) $ (19,370 ) Share-based compensation 2,634 2,579
3,227 5,213 6,577 Litigation defense expenses 536 273 109 809 151
Amortization of intangible assets 338 337 718 675 1,450 Loss on
sale of the Web Content Management business - 62 - 62 - Acquisition
related expenses - - (9 ) - (33 ) Income from discontinued
operations (269 ) - -
(269 ) - Non-GAAP net loss $ (3,627 ) $ (4,389
) $ (7,188 ) $ (8,016 ) $ (11,225 )
LIMELIGHT NETWORKS,
INC. Reconciliation of U.S. GAAP Net Loss to EBITDA to
Adjusted EBITDA (In thousands) (Unaudited)
Three Months Ended
Six Months Ended June 30, March 31,
June 30, June 30, June 30, 2014
2014 2013
2014 2013 U.S. GAAP net
loss $ (6,866 ) $ (7,640 ) $ (11,233 ) $ (14,506 ) $ (19,370 )
Depreciation and amortization 5,118 5,403 7,562 10,521
15,692 Interest expense 7 12 21 19 48 Loss on sale of the Web
Content Management business - 62 - 62
-
Interest and other expense (income) 128 (149 ) (222 ) (21 ) (860 )
Income tax provision 27 56 51 83 131 Income from discontinued
operations (269 ) - -
(269 ) - EBITDA from continuing operations
(1,855 ) (2,256 ) (3,821 ) (4,111 ) (4,359 ) Share-based
compensation 2,634 2,579 3,227 5,213 6,577 Litigation defense
expenses 536 273 109 809 151 Acquisition related expenses -
- (9 ) - (33 )
Adjusted EBITDA (loss) $ 1,315 $ 596 $ (494 )
$ 1,911 $ 2,336
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.Sajid Malhotra,
602-850-5778ir@llnw.comorfamaPR on behalf of Limelight NetworksAmy
Peterson, 617-986-5020limelight@famapr.com
Grafico Azioni Limelight Networks (NASDAQ:LLNW)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Limelight Networks (NASDAQ:LLNW)
Storico
Da Lug 2023 a Lug 2024