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Section 1: 8-K (8-K)

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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):
July 27, 2016
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 July 27, 2016, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2016, 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 July 27, 2016 (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: July 27, 2016
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary










EXHIBIT INDEX
 
 
 
 
Exhibit
Number
 
Description
99.1
 
Limelight Networks, Inc. Press Release dated July 27, 2016 (furnished herewith).



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

July 27, 2016
Limelight Networks(R) Reports Financial Results for the Second Quarter of 2016
Q2 revenue of $43.6 million
GAAP gross margin of 43.2%, up 180 basis points versus prior year
GAAP EPS of $(0.53), Non-GAAP EPS of $0.01
Generated $6.7 million cash
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $43.6 million for the second quarter ended June 30, 2016, compared to $43.8 million in the second quarter of 2015.
Gross margin was 43.2% in the second quarter of 2016, an increase of 180 basis points from 41.4% in the second quarter of 2015.
Limelight reported a net loss of $54.9 million, or $0.53 per basic share, for the second quarter of 2016, compared to a net loss of $6.4 million, or $0.06 per basic share in the second quarter of 2015. The second quarter of 2016 net loss included a $51 million provision for litigation related to the Akamai lawsuit. As a result, in July 2016, we have regained access to $11.8 million of availability under our $25 million secured revolving line of credit.
Non-GAAP net income was $0.6 million or $0.01 per basic share for the second quarter of 2016, compared to a non-GAAP net loss of $4.1 million, or $0.04 per basic share in the second quarter of 2015.
EBITDA was negative $49.3 million for the second quarter of 2016, compared to negative $1.2 million for the second quarter of 2015. Adjusted EBITDA was $6.2 million for the second quarter of 2016, compared to $0.9 million for the second quarter of 2015.
During the second quarter of 2016, Limelight generated $6.7 million in cash.
Limelight ended the second quarter with 512 employees and employee equivalents, up from 501 employees at the end of the first quarter of 2016, and down from 563 employees in the year ago period.
Commenting on the results, Chief Executive Officer, Robert Lento said, “This was a milestone quarter in many ways. Our reported revenue suggests we strengthened our market position. At the same time, we improved our gross margin, achieved positive non-GAAP net income for the first time since 2007, and generated almost $7 million in cash from operations.”
He added, “Our financials, service quality, and performance are much improved over prior year, and, during the quarter, we entered into strategic agreements with Neustar and Google, demonstrating growing trust major corporations are placing in our global capabilities. We believe we have sufficient cash to invest in our operations, and our focus is on delighting our customers, strengthening our balance sheet, generating cash, and building shareholder value.”
We believe the longstanding 703 litigation is largely behind us. In addition, we are pursuing compensation for unauthorized use of our intellectual property by Akamai and XO Communications in the patent infringement case we filed against those companies in the Eastern District of Virginia back in November 2015.”
Based on current conditions, Limelight expects revenue to grow year-over-year in the single-digit percentages for the remainder of 2016. Management expects gross margin improvement for the full year of over 250 basis points, versus 200 basis points previously expected. We are also raising the lower end of our non-GAAP net income projection to between break-even and positive $0.05 per share. Capital expenditures should be $3 million less than prior guidance, and should total less than $17 million for the full year.



Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
June 30,
2016
 
December 31,
2015
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
30,885

 
$
44,680

Restricted cash
62,790

 

Marketable securities

 
28,322

Accounts receivable, net
24,872

 
26,795

Income taxes receivable
135

 
170

Deferred income taxes
80

 
89

Prepaid expenses and other current assets
6,278

 
9,578

Total current assets
125,040

 
109,634

Property and equipment, net
30,647

 
36,143

Marketable securities, less current portion
40

 
40

Deferred income taxes, less current portion
1,284

 
1,252

Goodwill
76,242

 
76,143

Other assets
1,903

 
2,415

Total assets
$
235,156

 
$
225,627

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
7,630

 
$
9,137

Deferred revenue
2,469

 
2,890

Capital lease obligations
1,119

 
466

Income taxes payable
165

 
204

Provision for litigation
50,956

 

Other current liabilities
10,391

 
10,857

Total current liabilities
72,730

 
23,554

Long-term debt
12,790

 

Capital lease obligations, less current portion
3,008

 
1,436

Deferred income taxes
145

 
137

Deferred revenue, less current portion
52

 
92

Other long-term liabilities
1,963

 
2,311

Total liabilities
90,688

 
27,530

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; 104,653 and 102,299 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively
104

 
102

Additional paid-in capital
483,903

 
477,202

Accumulated other comprehensive loss
(10,304
)
 
(10,812
)
Accumulated deficit
(329,235
)
 
(268,395
)
Total stockholders’ equity
144,468

 
198,097

Total liabilities and stockholders’ equity
$
235,156

 
$
225,627


 



Exhibit 99.1

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
 
2016
 
2016
 
Change
 
2015
 
Change
 
2016
 
2015
 
Change
Revenues
$
43,560

 
$
41,422

 
5
 %
 
$
43,795

 
(1
)%
 
$
84,982

 
$
86,124

 
(1
)%
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
20,271

 
20,110

 
1
 %
 
21,271

 
(5
)%
 
40,380

 
42,928
 
(6
)%
Depreciation — network
4,489

 
4,668

 
(4
)%
 
4,376

 
3
 %
 
9,157

 
8,528
 
7
 %
Total cost of revenue
24,760

 
24,778

 
 %
 
25,647

 
(3
)%
 
49,537

 
51,456
 
(4
)%
Gross profit
18,800

 
16,644

 
13
 %
 
18,148

 
4
 %
 
35,445

 
34,668
 
2
 %
Gross profit percentage
43.2
%
 
40.2
%
 
 
 
41.4
%
 
 
 
41.7
%
 
40.3
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
7,241

 
6,808

 
6
 %
 
6,081

 
19
 %
 
14,049

 
12,932
 
9
 %
Sales and marketing (1)
8,117

 
8,903

 
(9
)%
 
10,002

 
(19
)%
 
17,020

 
20,278
 
(16
)%
Research and development (1)
6,289

 
6,325

 
(1
)%
 
7,646

 
(18
)%
 
12,614

 
13,909
 
(9
)%
Depreciation and amortization
626

 
623

 
 %
 
635

 
(1
)%
 
1,249

 
1,276
 
(2
)%
Provision for litigation
50,956

 

 
NA

 

 
NA

 
50,956

 
 
NA

Total operating expenses
73,229

 
22,659

 
223
 %
 
24,364

 
201
 %
 
95,888

 
48,395
 
98
 %
Operating loss
(54,429
)
 
(6,015
)
 
805
 %
 
(6,216
)
 
776
 %
 
(60,443
)
 
(13,727)
 
340
 %
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(279
)
 
(179
)
 
56
 %
 

 
NA

 
(459
)
 
(4)
 
11,375
 %
Interest income
8

 
6

 
33
 %
 
75

 
(89
)%
 
14

 
149
 
(91
)%
Other, net
(79
)
 
400

 
(120
)%
 
(131
)
 
(40
)%
 
321

 
1,682
 
(81
)%
Total other income (expense)
(350
)
 
227

 
(254
)%
 
(56
)
 
525
 %
 
(124
)
 
1,827
 
(107
)%
Loss before income taxes
(54,779
)
 
(5,788
)
 
846
 %
 
(6,272
)
 
773
 %
 
(60,567
)
 
(11,900)
 
409
 %
Income tax expense
115

 
158

 
(27
)%
 
90

 
28
 %
 
273

 
145
 
88
 %
Net loss
$
(54,894
)
 
$
(5,946
)
 
823
 %
 
$
(6,362
)
 
763
 %
 
(60,840
)
 
(12,045)
 
405
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic and diluted
$
(0.53
)
 
$
(0.06
)
 
 
 
$
(0.06
)
 
 
 
(0.59
)
 
(0.12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
103,904

 
102,693

 
 
 
99,841

 
 
 
103,299

 
99,239

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes share-based compensation (see supplemental table for figures)
 
 
 
 
 
 




Exhibit 99.1

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,
 
2016
 
2016
 
2015
 
2016
 
2015
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
436

 
$
473

 
$
571

 
$
909

 
$
1,084

General and administrative
1,677

 
1,826

 
1,476

 
3,503

 
2,882

Sales and marketing
638

 
737

 
608

 
1,375

 
1,297

Research and development
542

 
460

 
625

 
1,002

 
1,086

Total share-based compensation
$
3,293

 
$
3,496

 
$
3,280

 
$
6,789

 
$
6,349

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,489

 
$
4,668

 
$
4,376

 
$
9,157

 
$
8,528

Other depreciation and amortization
620

 
617

 
434

 
1,237

 
877

Amortization of intangible assets
6

 
6

 
201

 
12

 
399

Total depreciation and amortization
$
5,115

 
$
5,291

 
$
5,011

 
$
10,406

 
$
9,804

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and marketable securities:
$
6,744

 
$
(48,861
)
 
$
(6,027
)
 
$
(42,117
)
 
$
(18,167
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
904

 
926

 
1,035

 
904

 
1,035

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
512

 
501

 
563

 
512

 
563





Exhibit 99.1

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,
 
2016
 
2016
 
2015
 
2016
 
2015
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(54,894
)
 
$
(5,946
)
 
$
(6,362
)
 
$
(60,840
)
 
$
(12,045
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,115

 
5,291

 
5,011

 
10,406

 
9,804

Share-based compensation
3,293

 
3,496

 
3,280

 
6,789

 
6,349

Provision for litigation
50,956

 

 

 
50,956

 

Foreign currency remeasurement (gain) loss
467

 
(301
)
 
96

 
166

 
(1,595
)
Deferred income taxes
(68
)
 
82

 
(62
)
 
14

 
(115
)
Gain on sale of property and equipment
(134
)
 

 

 
(134
)
 

Accounts receivable charges (recoveries)
83

 
(116
)
 
224

 
(33
)
 
470

Amortization of premium on marketable securities

 
19

 
48

 
19

 
106

Realized loss on marketable securities

 
32

 

 
32

 

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
2,497

 
(540
)
 
(4,312
)
 
1,957

 
(9,292
)
Prepaid expenses and other current assets
(191
)
 
3,583

 
(1,352
)
 
3,392

 
(202
)
Income taxes receivable
51

 
(13
)
 
13

 
38

 
11

Other assets
166

 
342

 
217

 
508

 
1,009

Accounts payable and other current liabilities
1,566

 
(4,005
)
 
3,389

 
(2,439
)
 
1,666

Deferred revenue
(934
)
 
473

 
520

 
(461
)
 
317

Income taxes payable
72

 
(127
)
 
52

 
(55
)
 

Other long term liabilities
(1,237
)
 
900

 
(175
)
 
(337
)
 
(444
)
Net cash provided by (used in) operating activities
6,808

 
3,170

 
587

 
9,978

 
(3,961
)
Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities

 

 
(1,965
)
 

 
(11,921
)
Sale and maturities of marketable securities

 
28,315

 
1,920

 
28,315

 
11,760

Change in restricted cash

 
(62,790
)
 

 
(62,790
)
 

Purchases of property and equipment
(259
)
 
(1,421
)
 
(5,395
)
 
(1,680
)
 
(12,061
)
Net cash (used in) provided by investing activities
(259
)
 
(35,896
)
 
(5,440
)
 
(36,155
)
 
(12,222
)
Financing activities
 
 
 
 
 
 
 
 
 
Principal payments on capital lease obligations
(319
)
 
(159
)
 

 
(478
)
 
(358
)
Payment of employee tax withholdings related to restricted stock vesting
(298
)
 
(646
)
 
(837
)
 
(944
)
 
(1,944
)
Cash paid for purchase of common stock

 

 

 

 
(957
)
Proceeds from line of credit

 
12,790

 

 
12,790

 

Proceeds from employee stock plans
813

 
43

 
544

 
856

 
2,519

Net cash provided by (used in) financing activities
196

 
12,028

 
(293
)
 
12,224

 
(740
)
Effect of exchange rate changes on cash and cash equivalents
(1
)
 
159

 
140

 
158

 
(342
)
Net increase (decrease) in cash and cash equivalents
6,744

 
(20,539
)
 
(5,006
)
 
(13,795
)
 
(17,265
)
Cash and cash equivalents, beginning of period
24,141

 
44,680

 
45,508

 
44,680

 
57,767

Cash and cash equivalents, end of period
$
30,885

 
$
24,141

 
$
40,502

 
$
30,885

 
$
40,502

Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles (Non-GAAP) net income (loss), EBITDA and Adjusted EBITDA as supplemental measures 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. We define Non-GAAP net income (loss) to be U.S. GAAP net income (loss), adjusted to exclude provision for litigation, share-based compensation, litigation expenses, and amortization of intangible assets. We believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define EBITDA as U.S. GAAP net income (loss) adjusted to exclude interest and other (income) expense, interest expense, income tax expense, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted to exclude provision for litigation, share-based compensation and litigation expenses. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. Our management uses these Non-GAAP financial measures because,



Exhibit 99.1

collectively, they provide valuable information on the performance of our on-going operations, excluding non-cash charges, taxes and non-core activities (including interest payments related to financing activities). These measures also enable our management to compare the results of our on-going operations from period to period, and allow management to review the performance of our on-going operations against our peer companies and against other companies in our industry and adjacent industries. We believe these measures also provide similar insights to investors, and enable investors to review our results of operations “through the eyes of management.”
Furthermore, our management uses these Non-GAAP financial measures to assist them in making decisions regarding our strategic priorities and areas for future investment and focus.
The terms Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. 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 U.S. 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;
these measures do not reflect changes in, or cash requirements for, our working capital needs;
Non-GAAP net income (loss) and Adjusted EBITDA do not reflect the cash requirements necessary for litigation costs, including provision for litigation and litigation expenses;
these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;
these measures 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 Non-GAAP net income (loss), EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income (loss), EBITDA, 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
Limelight is presenting the most directly comparable U.S. GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable U.S. GAAP measures. Per share amounts may not foot due to rounding.









Exhibit 99.1

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited
 
Three Months Ended
 
Six Months Ended
 
June 30, 2016
 
March 31, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(54,894
)
 
$
(0.53
)
 
$
(5,946
)
 
$
(0.06
)
 
$
(6,362
)
 
$
(0.06
)
 
$
(60,840
)
 
$
(0.59
)
 
$
(12,045
)
 
$
(0.12
)
Provision for litigation
50,956

 
0.49

 

 

 

 

 
50,956

 
0.49

 

 

Share-based compensation
3,293

 
0.03

 
3,496

 
0.03

 
3,280

 
0.03

 
6,789

 
0.07

 
6,349

 
0.06

Litigation expenses
1,271

 
0.01

 
1,178

 
0.01

 
(1,174
)
 
(0.01
)
 
2,449

 
0.02

 
(1,155
)
 
(0.01
)
Amortization of intangible assets
6

 

 
6

 

 
201

 

 
12

 

 
399

 

Non-GAAP net loss
$
632

 
$
0.01

 
$
(1,266
)
 
$
(0.01
)
 
$
(4,055
)
 
$
(0.04
)
 
$
(634
)
 
$
(0.01
)
 
$
(6,452
)
 
$
(0.07
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
103,904

 
 
 
102,693

 
 
 
99,841

 
 
 
103,299

 
 
 
99,239



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,
 
2016
 
2016
 
2015
 
2016
 
2015
U.S. GAAP net loss
$
(54,894
)
 
$
(5,946
)
 
$
(6,362
)
 
$
(60,840
)
 
$
(12,045
)
Depreciation and amortization
5,115

 
5,291

 
5,011

 
10,406

 
9,804

Interest expense
279

 
179

 

 
459

 
4

Interest and other (income) expense
71

 
(406
)
 
56

 
(335
)
 
(1,831
)
Income tax expense
115

 
158

 
90

 
273

 
145

EBITDA
$
(49,314
)
 
$
(724
)
 
$
(1,205
)
 
$
(50,037
)
 
$
(3,923
)
Provision for litigation
50,956

 

 

 
50,956

 

Share-based compensation
3,293

 
3,496

 
3,280

 
6,789

 
6,349

Litigation expenses
1,271

 
1,178

 
(1,174
)
 
2,449

 
(1,155
)
Adjusted EBITDA
$
6,206

 
$
3,950

 
$
901

 
$
10,157

 
$
1,271

For future periods, we are unable to provide a reconciliation of EBITDA and Adjusted EBITDA to net loss as a result of the uncertainty regarding, and the potential variability of, the amounts of depreciation and amortization, interest expense, interest and other (income) expense and income tax expense, that may be incurred in the future.
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 audio cast live from http://www.limelight.com and a replay will be available following the call from the Limelight website.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding our expectations regarding revenues for the full



Exhibit 99.1

year 2016; our gross margin, non-GAAP net income and capital expenditures for the full year 2016; our expectations regarding litigation; and our future prospects. Our expectations and beliefs regarding these matters may not materialize. The potential risks and uncertainties that could cause actual results or outcomes to differ materially from the results or outcomes predicted include, among other things, reduction of demand for our services from new or existing customers, unforeseen changes in our hiring patterns, adverse outcomes in litigation, and experiencing expenses that exceed our expectations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online on our investor relations website at investors.limelightnetworks.com and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of July 27, 2016, and we undertake no duty to update this information in light of new information or future events, unless required by law.
About Limelight
Limelight Networks (NASDAQ: LLNW), a global leader in digital content delivery, empowers customers to better engage online audiences by enabling them to securely manage and globally deliver digital content, on any device. The company’s award winning Limelight Orchestrate™ platform includes an integrated suite of content delivery technology and services that helps organizations secure digital content, 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, follow us on Twitter , Facebook and LinkedIn and be sure to visit Limelight Connect.”
Copyright (C) 2016 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.
Source: Limelight Networks
Language:
English
CONTACT:
Limelight Networks, Inc.
Sajid Malhotra, 602-850-5778
ir@llnw.com
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ



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