- Revenue of $39.0 million and $0.05 loss
per basic share
- Non-GAAP loss of $0.02 per share
- $101.3 million, or $1.03 per share, of
cash, cash equivalents and marketable securities
- 2014 revenue guidance raised to between
$159 and $161 million
Limelight Networks, Inc. (Nasdaq:LLNW) ("Limelight"), a global
leader in digital content delivery, today reported revenue of $39.0
million for the quarter ended September 30, 2014, compared to $42.7
million in the third quarter of 2013 and $41.3 million in the
second quarter of 2014. Netflix revenue was $1.2 million in the
third quarter of 2014, compared to $4.2 million in the third
quarter of 2013 and $5.4 million in the second quarter of 2014. The
third quarter of 2013 included $3.3 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 $5.1 million or $0.05 per basic and fully diluted
share for the third quarter of 2014, compared to a loss of $10.9
million, or $0.11 per basic and fully diluted share in the same
period of 2013.
On a non-GAAP basis, net loss was $2.2 million, or $0.02 per
basic share for the quarter ended September 30, 2014 compared to a
non-GAAP net loss of $6.7 million or $0.07 per basic share in the
third quarter of 2013.
EBITDA from continuing operations for the quarter was negative
$1.2 million. After adjusting for share based compensation,
litigation expense, and acquisition related expenses the Company
reported adjusted EBITDA of $1.4 million compared to an adjusted
breakeven EBITDA in the year ago period.
During the quarter, Limelight purchased 0.4 million shares at an
average price of $2.83, in the open market, under its repurchase
authorization. The Company has $12.5 million remaining under its
previously announced repurchase authorization.
Limelight ended the quarter with 509 employees, up from 477
employees at the end of the second quarter of 2014, and slightly up
from 508 employees in the year ago period.
Based on current conditions, the company is raising it full year
revenue guidance to between $159 and $161 million, from its
previous revenue guidance of between $155 and $159 million.
Commenting on the quarter, Chief Executive Officer, Robert Lento
said, “I’m very pleased with the overall performance in the
quarter. Our revenue attainment, coupled with operational and
financial improvements, and expense discipline, validates our
approach and priorities.”
He added, “we believe, demand for our existing products, the
introduction of new features and functionality, and the opportunity
to further improve our gross margins will improve our position in
the market and create shareholder value. We remain focused on
executing our plan for the remainder of 2014 and exiting the year
well positioned for sustained performance improvements in
2015.”
Financial Tables
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (In thousands, except per share data)
September 30, December 31, 2014
2013 (Unaudited) ASSETS Current assets: Cash
and cash equivalents $ 67,028 $ 85,956 Marketable securities 34,228
32,506 Accounts receivable, net 22,443 21,430 Income taxes
receivable 289 371 Deferred income taxes 65 93 Prepaid expenses and
other current assets 9,040 8,192 Total
current assets 133,093 148,548 Property and equipment, net 32,154
32,905 Marketable securities, less current portion 40 46 Deferred
income taxes, less current portion 1,337 1,307 Goodwill 76,583
77,035 Other intangible assets, net 1,344 2,354 Other assets
5,098 6,103 Total assets $ 249,649 $
268,298
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 9,314 $ 5,473 Deferred
revenue 3,503 3,523 Capital lease obligation 219 466 Income taxes
payable 634 799 Other current liabilities 12,245
15,022 Total current liabilities 25,915 25,283
Capital lease obligation, less current portion 192 358 Deferred
income taxes 181 321 Deferred revenue, less current portion 627
1,500 Other long-term liabilities 2,955 3,505
Total liabilities 29,870 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 September 30, 2014 and December 31, 2013;
98,655 and 97,677 shares issued and outstanding at September 30,
2014 and December 31, 2013, respectively
99 98 Additional paid-in capital 463,712 458,748 Accumulated other
comprehensive loss (4,596 ) (1,663 ) Accumulated deficit
(239,436 ) (219,852 ) Total stockholders' equity
219,779 237,331 Total liabilities and
stockholders' equity $ 249,649 $ 268,298
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except per share
data) (Unaudited)
Three Months Ended Nine
Months Ended September 30, June 30,
Percent September 30, Percent September
30, September 30, Percent 2014 2014
Change 2013 Change 2014 2013
Change Revenues $ 39,020 $ 41,343 -6 %
$ 42,656 -9 % $ 121,533 $ 131,232 -7 % Cost of
revenue: Cost of services (1) (2) (3) 18,672 21,326 -12 % 22,138
-16 % 61,563 66,721 -8 % Depreciation - network 4,207
4,144 2 % 5,278 -20 % 12,688
18,078 -30 % Total cost of revenue (1) (3)
22,879 25,470 -10 % 27,416
-17 % 74,251 84,799 -12 % Gross
profit (1) (3) 16,141 15,873 2 % 15,240 6 % 47,282 46,433 2 % Gross
profit percentage 41.4 % 38.4 % 35.7 % 38.9 % 35.4 % Operating
expenses: General and administrative (2) (3) 7,295 7,643 -5 % 8,244
-12 % 21,966 24,022 -9 % Sales and marketing (2) 8,731 9,370 -7 %
10,363 -16 % 28,356 31,545 -10 % Research & development (2)
5,514 4,859 13 % 5,423 2 % 14,951 16,814 -11 % Depreciation and
amortization 825 977 -16 % 1,433
-42 % 2,868 4,325 -34 % Total
operating expenses (3) 22,365 22,849 -2
% 25,463 -12 % 68,141 76,706
-11 % Operating loss (6,224 ) (6,976 ) -11 % (10,223
) -39 % (20,859 ) (30,273 ) -31 % Other income (expense):
Interest expense (7 ) (7 ) 0 % (15 ) -53 % (26 ) (64 ) -59 %
Interest income 66 67 -1 % 89 -26 % 203 238 -15 % Other, net
1,192 (195 ) -711 % (557 ) -314 % 1,014
154 558 % Total other income (expense)
1,251 (135 ) -1027 % (483 ) -359 %
1,191 328 263 % Loss from continuing
operations before income taxes (4,973 ) (7,111 ) -30 % (10,706 )
-54 % (19,668 ) (29,945 ) -34 % Income tax provision 98
27 263 % 197 -50 % 181
328 -45 % Loss from continuing
operations (5,071 ) (7,138 ) -29 % (10,903 ) -53 % (19,849 )
(30,273 ) -34 % Discontinued operations: (Loss) income from
discontinued operations, net of income taxes (4 ) 269
-101 % (15 ) -73 % 265 (15 )
-1867 % Net loss $ (5,075 ) $ (6,869 ) -26 % $ (10,918 ) -54
% $ (19,584 ) $ (30,288 ) -35 % Net loss per share: Basic
and diluted Continuing operations $ (0.05 ) $ (0.07 ) $ (0.11 ) $
(0.20 ) $ (0.31 ) Discontinued operations $ (0.00 ) $ 0.00 $
(0.00 ) $ 0.00 $ (0.00 ) Total $ (0.05 ) $ (0.07 ) $ (0.11 )
$ (0.20 ) $ (0.31 ) Weighted average shares used in per
share calculation: Basic and diluted 98,458 98,419 96,949 98,274
96,675
(1) Includes the correction of
approximately $1.1 million in over billings by a co-location
provider recorded as a reduction in cost of revenues in the three
and nine months ended September 30, 2014.
(2) Includes share-based compensation (see supplemental
table for figures) (3) 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 Nine Months Ended
September 30, June 30, September 30,
September 30, September 30, 2014 2014
2013 2014 2013 Supplemental financial data
(in thousands): Share-based compensation:
Cost of revenues $ 464 $ 498 $ 499 $ 1,466 $ 1,518 General and
administrative 1,174 1,165 1,591 3,539 4,817 Sales and marketing
567 601 638 1,693 1,896 Research and development 382
370 495 1,102
1,569 Total share-based compensation $ 2,587 $
2,634 $ 3,223 $ 7,800 $ 9,800
Depreciation and amortization: Network-related
depreciation $ 4,207 $ 4,144 $ 5,278 $ 12,688 $ 18,078 Other
depreciation and amortization 566 639 722 1,934 2,164 Amortization
of intangible assets 259 338 711
934 2,161 Total
depreciation and amortization $ 5,032 $ 5,121 $ 6,711
$ 15,556 $ 22,403 Net (decrease)
increase in cash, cash equivalents and marketable securities: $
(6,200 ) $ (4,921 ) $ (6,603 ) $ (17,212 ) $ (15,702 )
End of period statistics: Approximate number
of active customers 1,134 1,186 1,341 1,134 1,341 Number of
employees 509 477 508 509 508
LIMELIGHT NETWORKS,
INC. SUMMARY OF RECLASSIFICATIONS (In thousands)
(Unaudited) Three Months Ended
Nine Months Ended September 30, September 30,
2013 2013 Summary of reclassifications (in
thousands): Cost of services As previously
reported $ 21,773 $ 65,696 Reclassification 365
1,025 After Reclassification $ 22,138 $ 66,721
Total cost of revenue As previously reported $
27,051 $ 83,774 Reclassification 365 1,025
After reclassifications $ 27,416 $ 84,799
Gross profit As previously reported $ 15,605 $ 47,458
Reclassifications (365 ) (1,025 ) After
reclassifications $ 15,240 $ 46,433
General
and administrative As previously reported $ 8,609 $ 25,047
Reclassifications (365 ) (1,025 ) After
reclassifications $ 8,244 $ 24,022
Total
operating expenses As previously reported $ 25,828 $ 77,731
Reclassifications (365 ) (1,025 ) After
reclassifications $ 25,463 $ 76,706
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, June 30, September 30,
September 30, September 30, 2014 2014
2013 2014 2013 Operating
activities Net loss $ (5,075 ) $ (6,869 ) $ (10,918 ) $ (19,584
) $ (30,288 ) Income (loss) from discontinued operations (4
) 269 (15 ) 265 (15 ) Net
loss from continuing operations (5,071 ) (7,138 ) (10,903 ) (19,849
) (30,273 ) Adjustments to reconcile net loss from
continuing operations to net cash provided by (used in) operating
activities of continuing operations: Depreciation and amortization
5,032 5,121 6,711 15,556 22,403 Share-based compensation 2,587
2,634 3,223 7,800 9,800 Deferred income taxes 17 (179 ) 80 (185 )
(209 ) Foreign currency remeasurement (gain) loss (1,207 ) 152 641
(1,067 ) (504 ) Loss on sale of property and equipment - - 3 - 25
Accounts receivable charges (29 ) 352 225 483 758 Amortization of
premium on marketable securities 88 113 182 374 462 Non cash tax
benefit associated with income from discontinued operations - (59 )
- (59 ) - Changes in operating assets and liabilities: Accounts
receivable 1,652 (1,169 ) (1,398 ) (1,496 ) 177 Prepaid expenses
and other current assets (1,617 ) 1,645 (33 ) (1,045 ) 1,930 Income
taxes receivable (53 ) 129 (17 ) 55 131 Other assets 63 311 341 991
908 Accounts payable 1,466 (512 ) 252 4,762 1,102 Deferred revenue
(86 ) 24 (827 ) (893 ) 256 Other current liabilities (844 ) 153 803
(3,663 ) (436 ) Income taxes payable (95 ) (13 ) 96 (214 ) 456
Other long term liabilities (310 ) (62 ) (166
) (545 ) (448 ) Net cash provided by (used in)
operating activities 1,593 1,502
(787 ) 1,005 6,538
Investing
activities Purchases of marketable securities (2,986 ) (9,486 )
(3,841 ) (17,669 ) (49,811 ) Maturities of marketable securities
2,685 8,485 7,426 15,550 35,321 Purchases of property and equipment
(5,075 ) (5,844 ) (5,563 ) (13,984 ) (12,685 ) Proceeds from sale
of discontinued operations - 414
5 414 124 Net cash used in
investing activities (5,376 ) (6,431 ) (1,973
) (15,689 ) (27,051 )
Financing
activities Payments on capital lease obligations (89 ) (163 )
(278 ) (412 ) (1,124 ) Proceeds from exercise of stock options and
employee stock plan 233 617 27 967 29 Cash paid for purchase of
common stock (1,296 ) (1,204 ) - (2,500 ) (5,512 ) Payment of
employee tax withholdings related to restricted stock (284 )
(307 ) (180 ) (1,455 ) (2,309 ) Net
cash used in financing activities (1,436 ) (1,057 )
(431 ) (3,400 ) (8,916 ) Effect of exchange
rate changes on cash and cash equivalents (1,153 )
176 310 (840 ) (256 )
Discontinued Operations Cash used in operating activities of
discontinued operations (4 ) - (8 )
(4 ) (8 )
Net (decrease) increase in cash and cash
equivalents (6,376 ) (5,810 ) (2,889 ) (18,928 ) (29,693 )
Cash and cash equivalents, beginning of period 73,404
79,214 82,111 85,956
108,915
Cash and cash equivalents, end of
period $ 67,028 $ 73,404 $ 79,222 $ 67,028
$ 79,222
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 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
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.
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 Nine Months Ended
September 30, June 30, September 30,
September 30, September 30, 2014 2014
2013 2014 2013 U.S. GAAP net loss $
(5,075 ) $ (6,869 ) $ (10,918 ) $ (19,584 ) $ (30,288 )
Share-based compensation 2,587 2,634 3,223 7,800 9,800 Litigation
defense expenses 10 536 149 819 299 Amortization of intangible
assets 259 338 711 934 2,161 Loss on sale of the Web Content
Management business - - - 62 - Acquisition related expenses - - 146
- 113 Loss (income) from discontinued operations 4
(269 ) 15 (265 ) 15
Non-GAAP net loss $ (2,215 ) $ (3,630 ) $ (6,674 ) $ (10,234
) $ (17,900 ) Includes the correction of
approximately $1.1 million in over billings by a co-location
provider recorded as a reduction in cost of revenues in the three
and nine months ended September 30, 2014.
LIMELIGHT
NETWORKS, INC. Reconciliation of U.S. GAAP Net Loss to
EBITDA to Adjusted EBITDA (In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, June 30, September 30,
September 30, September 30, 2014 2014
2013 2014 2013 U.S. GAAP net loss $
(5,075 ) $ (6,869 ) $ (10,918 ) $ (19,584 ) $ (30,288 )
Depreciation and amortization 5,032 5,121 6,711 15,556 22,403
Interest expense 7 7 15 26 64 Loss on sale of the Web Content
Management business - - - 62 - Interest and other (income) expense
(1,258 ) 128 468 (1,279 ) (392 ) Income tax provision 98 27 197 181
328 Loss (income) from discontinued operations 4
(269 ) 15 (265 ) 15
EBITDA from continuing operations (1,192 ) (1,855 ) (3,512 )
(5,303 ) (7,870 ) Share-based compensation 2,587 2,634 3,223
7,800 9,800 Litigation defense expenses 10 536 149 819 299
Acquisition related expenses - -
146 - 113 Adjusted EBITDA
$ 1,405 $ 1,315 $ 6 $ 3,316 $ 2,342
Includes the correction of approximately $1.1
million in over billings by a co-location provider recorded as a
reduction in cost of revenues in the three and nine months ended
September 30, 2014.
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.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20141110006467/en/
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