UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported):
August
4, 2014
LIMELIGHT
NETWORKS, INC.
(Exact
name of Registrant as specified in its charter)
Delaware
|
001-33508
|
20-1677033
|
(State or other jurisdiction of
incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
222 South
Mill Avenue, 8th
Floor
Tempe,
AZ 85281
(Address,
including zip code, of principal executive offices)
(602)
850-5000
(Registrant’s
telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02
|
Results of Operations and Financial Condition.
|
On August 4, 2014, Limelight Networks, Inc. issued a press release
regarding its financial results for the second quarter ended June 30,
2014 and certain other information. The full text of this press release
is furnished herewith as Exhibit 99.1.
The information in this Form 8-K and the Exhibit attached hereto shall
not be deemed “filed” for purposes of Section 18 of the Securities Act
of 1934, as amended (the “Exchange Act”), or otherwise subject to the
liabilities of that Section, or incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act,
except as shall be expressly set forth by specific reference in such
filing.
Item 9.01
|
Financial Statements and Exhibits.
|
(d) Exhibits
Exhibit
Number
|
|
Description
|
99.1
|
|
Limelight Networks, Inc. Press Release dated August 4, 2014
(furnished herewith).
|
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
|
LIMELIGHT NETWORKS, INC.
|
|
|
|
|
|
Dated:
|
August 4, 2014
|
By:
|
|
/s/ Philip C. Maynard
|
|
|
|
|
Philip C. Maynard
|
|
|
|
|
Senior Vice President, Chief Legal Officer and Secretary
|
EXHIBIT INDEX
Exhibit
Number
|
|
Description
|
99.1
|
|
Limelight Networks, Inc. Press Release dated August 4, 2014
(furnished herewith).
|
Exhibit 99.1
Limelight
Networks(R) Reports Financial Results for the Second Quarter of 2014
-
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
TEMPE, Ariz.--(BUSINESS WIRE)--August 4, 2014--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.
CONTACT:
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
Grafico Azioni Limelight Networks (NASDAQ:LLNW)
Storico
Da Lug 2024 a Ago 2024
Grafico Azioni Limelight Networks (NASDAQ:LLNW)
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