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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 26, 2017
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 26, 2017, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2017, 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 26, 2017 (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 26, 2017
 
 
 
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 26, 2017 (furnished herewith).



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

July 26, 2017
Limelight Networks(R) Reports Financial Results for the Second Quarter of 2017

Revenue of $45.4 million, up 4 percent year over year
GAAP gross margin of 47.1%, up 390 basis points, year over year
GAAP EPS of $(0.01) and Non-GAAP EPS of $0.03
Cash and marketable securities of $60.6 million
Raising 2017 revenue, gross margin, Non-GAAP earnings per share and Adjusted EBITDA guidance
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $45.4 million for the second quarter of 2017, up four percent compared to $43.6 million in the second quarter of 2016, and up one percent compared to $44.7 million in the first quarter of 2017. Currency headwinds negatively impacted year-over-year comparison by $0.3 million, or one percent.
Gross margin was 47.1% in the second quarter of 2017, an increase of 390 basis points from 43.2% in the second quarter of 2016.
On a GAAP basis, Limelight reported a net loss of $1.6 million, or $0.01 per basic share, for the second quarter of 2017, compared to a net loss of $57.9 million, or $0.56 per basic share, in the second quarter of 2016. The second quarter of 2016 net loss included a $54 million provision for litigation related to the settlement of the Akamai lawsuit.
Non-GAAP net income was $2.9 million or $0.03 per basic share, for the second quarter of 2017, compared to non-GAAP net income of $0.6 million, or $0.01 per basic share, in the second quarter of 2016.
EBITDA was $3.4 million for the second quarter of 2017, compared to negative $52.4 million for the second quarter of 2016. Adjusted EBITDA was $7.9 million for the second quarter of 2017, compared to $6.2 million for the second quarter of 2016.
Limelight ended the second quarter with 533 employees and employee equivalents, up from 528 employees at the end of the first quarter of 2017, and up from 512 employees in the year ago period.
“Our second quarter results continued to show meaningful year-over year improvements across revenue, margin, profitability and cash flow measures. Our performance improvements have strengthened our financial profile and improved our competitive position. Demand for our capabilities and services is growing and our R&D investments and strategic focus are continuing to gain traction. We continue to pursue numerous internal and external opportunities to accelerate growth and profitability and expect their realization to generate incremental shareholder returns,” said Bob Lento, Chief Executive Officer at Limelight.
“Our solid and consistent first half performance coupled with growing confidence as to our second half outlook, leads us to expect that we can deliver full year 2017 results above our previous guidance. We believe we may deliver close to double digit revenue growth for the two remaining quarters, and along with improving margins and continuing expense discipline, Limelight’s 2017 performance could represent our best year since we became a publicly traded company,” Mr. Lento added. 
Based on current conditions, for the full-year 2017, we are providing the following updates to our previously announced guidance for 2017:



Exhibit 99.1

Limelight Networks, Inc.
2017 Guidance
 
 
 
July 26, 2017
 
April 24, 2017
 
February 8, 2017
Revenue
 
$180 to $182 million
 
$177 to $181 million

$175 to $180 million
 
 

 
 
 
 
Gross margin percentage
 
Expansion of 300 basis points over 2016
 
Expansion of 200 basis points over 2016

Expansion of more than 150 basis points over 2016
 
 

 
 
 
 
Non-GAAP EPS
 
$0.05 to $0.07
 
$0.03 to $0.06

$0.02 to $0.06
 
 

 
 
 
 
Adjusted EBITDA
 
$24 to $28 million
 
$23 to $27 million

$22 to $27 million
 
 

 
 
 
 
Capital expenditures
 
Approx. $20 million
 
Approx. $20 million

Approx. $20 million



Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
22,972

 
$
19,152

 
$
21,734

Marketable securities
37,624

 
41,676

 
44,453

Accounts receivable, net
28,154

 
26,191

 
27,418

Income taxes receivable
112

 
99

 
125

Prepaid expenses and other current assets
4,121

 
3,989

 
4,865

Total current assets
92,983

 
91,107

 
98,595

Property and equipment, net
30,415

 
30,204

 
30,352

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes
1,307

 
1,193

 
1,105

Goodwill
77,032

 
76,702

 
76,243

Other assets
1,802

 
1,806

 
1,794

Total assets
$
203,579

 
$
201,052

 
$
208,129

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
10,763

 
$
8,558

 
$
8,790

Deferred revenue
1,741

 
1,845

 
2,138

Income taxes payable
334

 
193

 
188

Provision for litigation
18,000

 
18,000

 
18,000

Other current liabilities
12,722

 
10,600

 
12,836

Total current liabilities
43,560

 
39,196

 
41,952

Deferred income taxes
147

 
154

 
152

Deferred revenue, less current portion
15

 
13

 
22

Provision for litigation, less current portion
18,000

 
22,500

 
27,000

Other long-term liabilities
1,057

 
1,238

 
1,435

Total liabilities
62,779

 
63,101

 
70,561

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; 109,248, 107,979 and 107,059 shares issued and outstanding at June 30, 2017, March 31, 2017 and December 31, 2016, respectively
109

 
108

 
107

Additional paid-in capital
497,018

 
493,567

 
490,819

Accumulated other comprehensive loss
(9,045
)
 
(10,067
)
 
(11,038
)
Accumulated deficit
(347,282
)
 
(345,657
)
 
(342,320
)
Total stockholders’ equity
140,800

 
137,951

 
137,568

Total liabilities and stockholders’ equity
$
203,579

 
$
201,052

 
$
208,129

 
 
 
 
 
 

 



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
 
2017
 
2017
 
Change
 
2016
 
Change
 
2017
 
2016
 
Change
Revenues
$
45,370

 
$
44,735

 
1
 %
 
$
43,560

 
4
 %
 
$
90,105

 
$
84,982

 
6
 %
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
19,464

 
19,007

 
2
 %
 
20,271

 
(4
)%
 
38,471

 
40,380
 
(5
)%
Depreciation — network
4,531

 
4,557

 
(1
)%
 
4,489

 
1
 %
 
9,088

 
9,157
 
(1
)%
Total cost of revenue
23,995

 
23,564

 
2
 %
 
24,760

 
(3
)%
 
47,559

 
49,537
 
(4
)%
Gross profit
21,375

 
21,171

 
1
 %
 
18,800

 
14
 %
 
42,546

 
35,445
 
20
 %
Gross profit percentage
47.1
%
 
47.3
%
 
 
 
43.2
%
 
 
 
47.2
%
 
41.7
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
6,804

 
8,514

 
(20
)%
 
7,241

 
(6
)%
 
15,319

 
14,049
 
9
 %
Sales and marketing (1)
8,997

 
9,267

 
(3
)%
 
8,117

 
11
 %
 
18,265

 
17,020
 
7
 %
Research and development (1)
6,715

 
6,220

 
8
 %
 
6,289

 
7
 %
 
12,934

 
12,614
 
3
 %
Depreciation and amortization
597

 
589

 
1
 %
 
626

 
(5
)%
 
1,186

 
1,249
 
(5
)%
Provision for litigation

 

 
NA

 
54,000

 
NA

 

 
54,000
 
NA

Total operating expenses
23,113

 
24,590

 
(6
)%
 
76,273

 
(70
)%
 
47,704

 
98,932
 
(52
)%
Operating loss
(1,738
)
 
(3,419
)
 
(49
)%
 
(57,473
)
 
(97
)%
 
(5,158
)
 
(63,487)
 
(92
)%
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(10
)
 
(14
)
 
(29
)%
 
(279
)
 
(96
)%
 
(24
)
 
(459)
 
(95
)%
Interest income
121

 
117

 
3
 %
 
8

 
1,413
 %
 
239

 
14
 
1,607
 %
Other, net
153

 
87

 
76
 %
 
(79
)
 
(294
)%
 
241

 
321
 
(25
)%
Total other income (expense)
264

 
190

 
39
 %
 
(350
)
 
(175
)%
 
456

 
(124)
 
(468
)%
Loss before income taxes
(1,474
)
 
(3,229
)
 
(54
)%
 
(57,823
)
 
(97
)%
 
(4,702
)
 
(63,611)
 
(93
)%
Income tax expense
151

 
108

 
40
 %
 
115

 
31
 %
 
260

 
273
 
(5
)%
Net loss
$
(1,625
)
 
$
(3,337
)
 
(51
)%
 
$
(57,938
)
 
(97
)%
 
(4,962
)
 
(63,884)
 
(92
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic and diluted
$
(0.01
)
 
$
(0.03
)
 
 
 
$
(0.56
)
 
 
 
(0.05
)
 
(0.62
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
108,422

 
107,363

 
 
 
103,904

 
 
 
107,893

 
103,299

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2017
 
2017
 
2016
 
2017
 
2016
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
364

 
$
359

 
$
436

 
$
723

 
$
909

General and administrative
1,674

 
1,534

 
1,677

 
3,208

 
3,503

Sales and marketing
617

 
620

 
638

 
1,237

 
1,375

Research and development
600

 
562

 
542

 
1,162

 
1,002

Total share-based compensation
$
3,255

 
$
3,075

 
$
3,293

 
$
6,330

 
$
6,789

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,531

 
$
4,557

 
$
4,489

 
$
9,088

 
$
9,157

Other depreciation and amortization
597

 
589

 
620

 
1,186

 
1,237

Amortization of intangible assets

 

 
6

 

 
12

Total depreciation and amortization
$
5,128

 
$
5,146

 
$
5,115

 
$
10,274

 
$
10,406

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and marketable securities:
$
(232
)
 
$
(5,359
)
 
$
6,744

 
$
(5,591
)
 
$
(42,117
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
779

 
813

 
904

 
779

 
904

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
533

 
528

 
512

 
533

 
512





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,
 
2017
 
2017
 
2016
 
2017
 
2016
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(1,625
)
 
$
(3,337
)
 
$
(57,938
)
 
$
(4,962
)
 
$
(63,884
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,128

 
5,146

 
5,115

 
10,274

 
10,406

Share-based compensation
3,255

 
3,075

 
3,293

 
6,330

 
6,789

Provision for litigation

 

 
54,000

 

 
54,000

Foreign currency remeasurement loss
290

 
289

 
467

 
579

 
166

Deferred income taxes
(94
)
 
(50
)
 
(68
)
 
(144
)
 
14

Gain on sale of property and equipment
(17
)
 
(75
)
 
(134
)
 
(92
)
 
(134
)
Accounts receivable charges (recoveries)
241

 
249

 
83

 
490

 
(33
)
Amortization of premium on marketable securities
80

 
83

 

 
163

 
19

Realized loss on sale of marketable securities

 

 

 

 
32

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(2,204
)
 
978

 
2,497

 
(1,226
)
 
1,957

Prepaid expenses and other current assets
(47
)
 
914

 
(191
)
 
867

 
3,392

Income taxes receivable
(8
)
 
29

 
51

 
21

 
38

Other assets
11

 
(3
)
 
166

 
8

 
508

Accounts payable and other current liabilities
3,861

 
(1,160
)
 
1,566

 
2,701

 
(2,439
)
Deferred revenue
(101
)
 
(302
)
 
(934
)
 
(403
)
 
(461
)
Income taxes payable
138

 
(4
)
 
72

 
134

 
(55
)
Payments for provision for litigation
(4,500
)
 
(4,500
)
 

 
(9,000
)
 

Other long term liabilities
(185
)
 
(197
)
 
(1,237
)
 
(382
)
 
(337
)
Net cash provided by operating activities
4,223

 
1,135

 
6,808

 
5,358

 
9,978

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
(2,993
)
 
(4,526
)
 

 
(7,519
)
 

Sale and maturities of marketable securities
6,994

 
7,250

 

 
14,244

 
28,315

Change in restricted cash

 

 

 

 
(62,790
)
Purchases of property and equipment
(4,733
)
 
(5,745
)
 
(259
)
 
(10,478
)
 
(1,680
)
Proceeds from sale of property and equipment
22

 
58

 

 
80

 

Net cash used in investing activities
(710
)
 
(2,963
)
 
(259
)
 
(3,673
)
 
(36,155
)
Financing activities
 
 
 
 
 
 
 
 
 
Principal payments on capital lease obligations

 

 
(319
)
 

 
(478
)
Payment of employee tax withholdings related to restricted stock vesting
(880
)
 
(1,036
)
 
(298
)
 
(1,916
)
 
(944
)
Proceeds from line of credit

 

 

 

 
12,790

Proceeds from employee stock plans
1,077

 
111

 
813

 
1,188

 
856

Net cash provided by (used in) financing activities
197

 
(925
)
 
196

 
(728
)
 
12,224

Effect of exchange rate changes on cash and cash equivalents
110

 
171

 
(1
)
 
281

 
158

Net increase (decrease) in cash and cash equivalents
3,820

 
(2,582
)
 
6,744

 
1,238

 
(13,795
)
Cash and cash equivalents, beginning of period
19,152

 
21,734

 
24,141

 
21,734

 
44,680

Cash and cash equivalents, end of period
$
22,972

 
$
19,152

 
$
30,885

 
$
22,972

 
$
30,885

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 depreciation and amortization, interest expense, interest and other (income) expense, and income tax expense. We define



Exhibit 99.1

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, 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:



Exhibit 99.1


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.

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, 2017
 
March 31, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(1,625
)
 
$
(0.01
)
 
$
(3,337
)
 
$
(0.03
)
 
$
(57,938
)
 
$
(0.56
)
 
$
(4,962
)
 
$
(0.05
)
 
$
(63,884
)
 
$
(0.62
)
Provision for litigation

 

 

 

 
54,000

 
0.52

 

 

 
54,000

 
0.52

Share-based compensation
3,255

 
0.03

 
3,075

 
0.03

 
3,293

 
0.03

 
6,330

 
0.06

 
6,789

 
0.07

Litigation expenses
1,276

 
0.01

 
1,909

 
0.02

 
1,271

 
0.01

 
3,185

 
0.03

 
2,449

 
0.02

Amortization of intangible assets

 

 

 

 
6

 
0.00

 

 

 
12

 
0.00

Non-GAAP net income (loss)
$
2,906

 
$
0.03

 
$
1,647

 
$
0.02

 
$
632

 
$
0.01

 
$
4,553

 
$
0.04

 
$
(634
)
 
$
(0.01
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
108,422

 
 
 
107,363

 
 
 
103,904

 
 
 
107,893

 
 
 
103,299



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,
 
2017
 
2017
 
2016
 
2017
 
2016
U.S. GAAP net loss
$
(1,625
)
 
$
(3,337
)
 
$
(57,938
)
 
$
(4,962
)
 
$
(63,884
)
Depreciation and amortization
5,128

 
5,146

 
5,115

 
10,274

 
10,406

Interest expense
10

 
14

 
279

 
24

 
459

Interest and other (income) expense
(274
)
 
(204
)
 
71

 
(480
)
 
(335
)
Income tax expense
151

 
108

 
115

 
260

 
273

EBITDA
$
3,390

 
$
1,727

 
$
(52,358
)
 
$
5,116

 
$
(53,081
)
Provision for litigation

 

 
54,000

 

 
54,000

Share-based compensation
3,255

 
3,075

 
3,293

 
6,330

 
6,789

Litigation expenses
1,276

 
1,909

 
1,271

 
3,185

 
2,449

Adjusted EBITDA
$
7,921

 
$
6,711

 
$
6,206

 
$
14,631

 
$
10,157

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



Exhibit 99.1

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 888-317-6016 within the United States or +1 412-317-6016 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 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 July 26, 2017, 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) 2017 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



Exhibit 99.1

ir@llnw.com
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ



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