Toggle SGML Header (+)


Section 1: 8-K (8-K)

Document


 

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):
October 26, 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 October 26, 2016, Limelight Networks, Inc. issued a press release regarding its financial results for the third quarter ended September 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 October 26, 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: October 26, 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 October 26, 2016 (furnished herewith).



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

October 26, 2016
Limelight Networks(R) Reports Financial Results for the Third Quarter of 2016
Q3 revenue of $39.5 million, down 6 percent
Gross margin of 41.1%, up 330 basis points
GAAP EPS of $(0.06), compared to $(0.08) prior year
Break-even non-GAAP EPS, compared to $(0.04) prior year
Generated cash from operations
Guidance reflects momentum heading into Q4
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $39.5 million for the third quarter ended September 30, 2016, compared to $42.0 million in the third quarter of 2015, a decrease of six percent.
Gross margin was 41.1% in the third quarter of 2016, an increase of 330 basis points from 37.8% in the third quarter of 2015.
Limelight reported a net loss of $6.1 million, or $0.06 per basic share, for the third quarter of 2016, compared to a net loss of $7.8 million, or $0.08 per basic share, in the third quarter of 2015.
Non-GAAP net loss was $0.3 million, or break-even per basic share, for the third quarter of 2016 compared to a non-GAAP net loss of $4.3 million, or $0.04 per basic share, in the third quarter of 2015.
EBITDA was negative $0.7 million for the third quarter of 2016 compared to negative $3.0 million for the third quarter of 2015. Adjusted EBITDA was $5.1 million for the third quarter of 2016 compared to $0.3 million for the third quarter of 2015.
During the third quarter of 2016, Limelight generated $1.0 million in cash from operations. This is the sixth consecutive quarter of cash provided by operations.
Limelight ended the third quarter with 502 employees and employee equivalents, down from 512 employees at the end of the second quarter of 2016, and down from 556 employees in the year ago period.
Commenting on the results, Chief Executive Officer, Robert Lento said, “We delivered strong financial and operational performance driven by margin expansion, meaningful cost structure improvements, and disciplined revenue acquisition and restrained discounting. Limelight has achieved four consecutive quarters of triple digit gross margin expansion compared to prior year. Limelight’s customer satisfaction as measured by NPS score improved to the highest level since we started tracking this measure. Increasingly, we are being recognized for our quality, performance and service.”
He added, "We expect to deliver a strong fourth quarter with sequential and year over year quarterly revenue growth, and possibly the best quarterly gross margin and profitability profile for the year. With a strong financial foundation in place, we are focused on driving profitable revenue growth, and we expect to grow the business in the fourth quarter and into 2017, even as we further expand margins.”
Based on current conditions, for the fourth quarter, Limelight expects revenues to be between $43 and $45 million. Gross margin is expected to improve by over 250 basis points versus prior year, translating into positive non-GAAP earnings per share. Capital expenditures should total less than $15 million for the full year.






Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
September 30,
2016
 
June 30,
2016
 
December 31,
2015
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
74,400

 
$
30,885

 
$
44,680

Restricted cash

 
62,790

 

Marketable securities

 

 
28,322

Accounts receivable, net
22,859

 
24,872

 
26,795

Income taxes receivable
117

 
135

 
170

Deferred income taxes
85

 
80

 
89

Prepaid expenses and other current assets
5,347

 
6,278

 
9,578

Total current assets
102,808

 
125,040

 
109,634

Property and equipment, net
29,643

 
30,647

 
36,143

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes, less current portion
1,317

 
1,284

 
1,252

Goodwill
76,437

 
76,242

 
76,143

Other assets
1,848

 
1,903

 
2,415

Total assets
$
212,093

 
$
235,156

 
$
225,627

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
9,922

 
$
7,630

 
$
9,137

Deferred revenue
1,400

 
2,469

 
2,890

Capital lease obligations

 
1,119

 
466

Income taxes payable
141

 
165

 
204

Provision for litigation
18,000

 
18,000

 

Other current liabilities
10,828

 
10,391

 
10,857

Total current liabilities
40,291

 
39,774

 
23,554

Long-term debt

 
12,790

 

Capital lease obligations, less current portion

 
3,008

 
1,436

Deferred income taxes
148

 
145

 
137

Deferred revenue, less current portion
30

 
52

 
92

Provision for litigation, less current portion
31,500

 
36,000

 

Other long-term liabilities
1,747

 
1,963

 
2,311

Total liabilities
73,716

 
93,732

 
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; 105,218, 104,653 and 102,299 shares issued and outstanding at September 30, 2016, June 30, 2016 and December 31, 2015, respectively
105

 
104

 
102

Additional paid-in capital
486,574

 
483,903

 
477,202

Accumulated other comprehensive loss
(9,901
)
 
(10,304
)
 
(10,812
)
Accumulated deficit
(338,401
)
 
(332,279
)
 
(268,395
)
Total stockholders’ equity
138,377

 
141,424

 
198,097

Total liabilities and stockholders’ equity
$
212,093

 
$
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
 
Nine Months Ended
 
Sept. 30,
 
June 30,
 
Percent
 
Sept. 30,
 
Percent
 
Sept. 30,
 
Sept. 30,
 
Percent
 
2016
 
2016
 
Change
 
2015
 
Change
 
2016
 
2015
 
Change
Revenues
$
39,473

 
$
43,560

 
(9
)%
 
$
42,049

 
(6
)%
 
$
124,456

 
$
128,173

 
(3
)%
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
18,834

 
20,271

 
(7
)%
 
21,502

 
(12
)%
 
59,214

 
64,430
 
(8
)%
Depreciation — network
4,401

 
4,489

 
(2
)%
 
4,636

 
(5
)%
 
13,558

 
13,164
 
3
 %
Total cost of revenue
23,235

 
24,760

 
(6
)%
 
26,138

 
(11
)%
 
72,772

 
77,594
 
(6
)%
Gross profit
16,238

 
18,800

 
(14
)%
 
15,911

 
2
 %
 
51,684

 
50,579
 
2
 %
Gross profit percentage
41.1
%
 
43.2
%
 
 
 
37.8
%
 
 
 
41.5
%
 
39.5
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
8,033

 
7,241

 
11
 %
 
6,586

 
22
 %
 
22,082

 
19,518
 
13
 %
Sales and marketing (1)
7,711

 
8,117

 
(5
)%
 
9,489

 
(19
)%
 
24,730

 
29,767
 
(17
)%
Research and development (1)
5,626

 
6,289

 
(11
)%
 
7,429

 
(24
)%
 
18,241

 
21,338
 
(15
)%
Depreciation and amortization
613

 
626

 
(2
)%
 
648

 
(5
)%
 
1,862

 
1,924
 
(3
)%
Provision for litigation

 
54,000

 
NA

 

 
NA

 
54,000

 
 
NA

Total operating expenses
21,983

 
76,273

 
(71
)%
 
24,152

 
(9
)%
 
120,915

 
72,547
 
67
 %
Operating loss
(5,745
)
 
(57,473
)
 
(90
)%
 
(8,241
)
 
(30
)%
 
(69,231
)
 
(21,968)
 
215
 %
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(406
)
 
(279
)
 
46
 %
 

 
NA

 
(865
)
 
(4)
 
NA

Interest income
8

 
8

 
 %
 
82

 
(90
)%
 
22

 
231
 
(90
)%
Other, net
151

 
(79
)
 
(291
)%
 
473

 
(68
)%
 
472

 
2,155
 
(78
)%
Total other income (expense)
(247
)
 
(350
)
 
(29
)%
 
555

 
(145
)%
 
(371
)
 
2,382
 
(116
)%
Loss before income taxes
(5,992
)
 
(57,823
)
 
(90
)%
 
(7,686
)
 
(22
)%
 
(69,602
)
 
(19,586)
 
255
 %
Income tax expense
130

 
115

 
13
 %
 
76

 
71
 %
 
404

 
221
 
83
 %
Net loss
$
(6,122
)
 
$
(57,938
)
 
(89
)%
 
$
(7,762
)
 
(21
)%
 
(70,006
)
 
(19,807)
 
253
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic and diluted
$
(0.06
)
 
$
(0.56
)
 
 
 
$
(0.08
)
 
 
 
(0.67
)
 
(0.20
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
104,860

 
103,904

 
 
 
100,552

 
 
 
103,819

 
99,676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
Nine Months Ended
 
Sept. 30,
 
June 30,
 
Sept. 30,
 
Sept. 30,
 
Sept. 30,
 
2016
 
2016
 
2015
 
2016
 
2015
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
209

 
$
436

 
$
400

 
$
1,118

 
$
1,484

General and administrative
1,616

 
1,677

 
1,513

 
5,119

 
4,395

Sales and marketing
641

 
638

 
643

 
2,016

 
1,940

Research and development
521

 
542

 
568

 
1,523

 
1,654

Total share-based compensation
$
2,987

 
$
3,293

 
$
3,124

 
$
9,776

 
$
9,473

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,401

 
$
4,489

 
$
4,636

 
$
13,558

 
$
13,164

Other depreciation and amortization
611

 
620

 
445

 
1,848

 
1,322

Amortization of intangible assets
2

 
6

 
203

 
14

 
602

Total depreciation and amortization
$
5,014

 
$
5,115

 
$
5,284

 
$
15,420

 
$
15,088

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and marketable securities:
$
43,515

 
$
6,744

 
$
(5,342
)
 
$
1,398

 
$
(23,509
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
875

 
904

 
981

 
875

 
981

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
502

 
512

 
556

 
502

 
556





Exhibit 99.1

Limelight Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
Sept. 30,
 
June 30,
 
Sept. 30,
 
Sept. 30,
 
Sept. 30,
 
2016
 
2016
 
2015
 
2016
 
2015
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(6,122
)
 
$
(57,938
)
 
$
(7,762
)
 
$
(70,006
)
 
$
(19,807
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,014

 
5,115

 
5,284

 
15,420

 
15,088

Share-based compensation
2,987

 
3,293

 
3,124

 
9,776

 
9,473

Provision for litigation

 
54,000

 

 
54,000

 

Foreign currency remeasurement loss (gain)
343

 
467

 
(488
)
 
509

 
(2,083
)
Deferred income taxes
(39
)
 
(68
)
 
94

 
(25
)
 
(21
)
Gain on sale of property and equipment
(162
)
 
(134
)
 

 
(296
)
 

Accounts receivable charges
69

 
83

 
268

 
36

 
738

Amortization of premium on marketable securities

 

 
46

 
19

 
152

Realized loss on sale of marketable securities

 

 

 
32

 

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
1,944

 
2,497

 
4,025

 
3,901

 
(5,267
)
Prepaid expenses and other current assets
941

 
(191
)
 
498

 
4,333

 
296

Income taxes receivable
16

 
51

 
24

 
54

 
35

Other assets
50

 
166

 
578

 
558

 
1,587

Accounts payable and other current liabilities
1,769

 
1,566

 
(1,156
)
 
(670
)
 
510

Deferred revenue
(1,091
)
 
(934
)
 
(568
)
 
(1,552
)
 
(251
)
Income taxes payable
(21
)
 
72

 
(78
)
 
(76
)
 
(78
)
Provision for litigation
(4,500
)
 

 

 
(4,500
)
 

Other long term liabilities
(213
)
 
(1,237
)
 
(225
)
 
(550
)
 
(669
)
Net cash provided by (used in) operating activities
985

 
6,808

 
3,664

 
10,963

 
(297
)
Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities

 

 
(4,899
)
 

 
(16,820
)
Sale and maturities of marketable securities

 

 
5,160

 
28,315

 
16,920

Change in restricted cash
62,790

 

 

 

 

Purchases of property and equipment
(2,986
)
 
(259
)
 
(8,693
)
 
(4,666
)
 
(20,754
)
Net cash provided by (used in) investing activities
59,804

 
(259
)
 
(8,432
)
 
23,649

 
(20,654
)
Financing activities
 
 
 
 
 
 
 
 
 
Principal payments on capital lease obligations
(4,207
)
 
(319
)
 

 
(4,685
)
 
(358
)
Payment of employee tax withholdings related to restricted stock vesting
(362
)
 
(298
)
 
(335
)
 
(1,306
)
 
(2,279
)
Cash paid for purchase of common stock

 

 

 

 
(957
)
Proceeds from line of credit
(12,790
)
 

 

 

 

Proceeds from employee stock plans
48

 
813

 
212

 
904

 
2,731

Net cash (used in) provided by financing activities
(17,311
)
 
196

 
(123
)
 
(5,087
)
 
(863
)
Effect of exchange rate changes on cash and cash equivalents
37

 
(1
)
 
(159
)
 
195

 
(501
)
Net increase (decrease) in cash and cash equivalents
43,515

 
6,744

 
(5,050
)
 
29,720

 
(22,315
)
Cash and cash equivalents, beginning of period
30,885

 
24,141

 
40,502

 
44,680

 
57,767

Cash and cash equivalents, end of period
$
74,400

 
$
30,885

 
$
35,452

 
$
74,400

 
$
35,452

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
 
Nine Months Ended
 
September 30, 2016
 
June 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(6,122
)
 
$
(0.06
)
 
$
(57,938
)
 
$
(0.56
)
 
$
(7,762
)
 
$
(0.08
)
 
$
(70,006
)
 
$
(0.67
)
 
$
(19,807
)
 
$
(0.20
)
Provision for litigation

 

 
54,000

 
0.52

 

 

 
54,000

 
0.52

 

 

Share-based compensation
2,987

 
0.03

 
3,293

 
0.03

 
3,124

 
0.03

 
9,776

 
0.09

 
9,473

 
0.10

Litigation expenses
2,837

 
0.03

 
1,271

 
0.01

 
140

 

 
5,286

 
0.05

 
(1,015
)
 
(0.01
)
Amortization of intangible assets
2

 

 
6

 

 
203

 

 
14

 

 
602

 
0.01

Non-GAAP net loss
$
(296
)
 
$

 
$
632

 
$
0.01

 
$
(4,295
)
 
$
(0.04
)
 
$
(930
)
 
$
(0.01
)
 
$
(10,747
)
 
$
(0.11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
104,860

 
 
 
103,904

 
 
 
100,552

 
 
 
103,819

 
 
 
99,676



Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
(In thousands)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
Sept. 30,
 
June 30,
 
Sept. 30,
 
Sept. 30,
 
Sept. 30,
 
2016
 
2016
 
2015
 
2016
 
2015
U.S. GAAP net loss
$
(6,122
)
 
$
(57,938
)
 
$
(7,762
)
 
$
(70,006
)
 
$
(19,807
)
Depreciation and amortization
5,014

 
5,115

 
5,284

 
15,420

 
15,088

Interest expense
406

 
279

 

 
865

 
4

Interest and other (income) expense
(159
)
 
71

 
(555
)
 
(494
)
 
(2,386
)
Income tax expense
130

 
115

 
76

 
404

 
221

EBITDA
$
(731
)
 
$
(52,358
)
 
$
(2,957
)
 
$
(53,811
)
 
$
(6,880
)
Provision for litigation

 
54,000

 

 
54,000

 

Share-based compensation
2,987

 
3,293

 
3,124

 
9,776

 
9,473

Litigation expenses
2,837

 
1,271

 
140

 
5,286

 
(1,015
)
Adjusted EBITDA
$
5,093

 
$
6,206

 
$
307

 
$
15,251

 
$
1,578

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.



Exhibit 99.1

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 revenue, gross margin, non-GAAP net income, capital expenditures, 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 October 26, 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



(Back To Top)