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 18, 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 October 18, 2017, Limelight Networks, Inc. issued a press release regarding its financial results for the third quarter ended September 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
 













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 18, 2017
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary










EXHIBIT INDEX
 
 
 
 
Exhibit
Number
 
Description
99.1
 



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

October 18, 2017
Limelight Networks(R) Reports Record Financial Results for the Third Quarter of 2017
17% revenue growth and 730 basis points of gross margin improvements underscore record performance
Revenue of $46.1 million, up 17 percent year over year
GAAP gross margin of 48.4%, up 730 basis points, year over year
GAAP EPS of $(0.02) and Non-GAAP EPS of $0.02
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 $46.1 million for the third quarter of 2017, up 17% compared to $39.5 million in the third quarter of 2016, and up two percent compared to $45.4 million in the second quarter of 2017. Currency exchange negatively impacted year-over-year comparison by $0.2 million, or less than one percent.
Gross margin was 48.4% in the third quarter of 2017, an increase of 730 basis points from 41.1% in the third quarter of 2016.
On a GAAP basis, Limelight reported a net loss of $1.8 million, or $0.02 per basic share, for the third quarter of 2017, compared to a net loss of $6.1 million, or $0.06 per basic share, in the third quarter of 2016.
Non-GAAP net income was $2.2 million, or $0.02 per basic share, for the third quarter of 2017, compared to non-GAAP net loss of $0.3 million, or break-even per basic share, in the third quarter of 2016.
EBITDA was $3.4 million for the third quarter of 2017, compared to negative $0.7 million for the third quarter of 2016. Adjusted EBITDA was $7.4 million for the third quarter of 2017, compared to $5.1 million for the third quarter of 2016.
Limelight ended the third quarter with 535 employees and employee equivalents, up from 533 employees at the end of the second quarter of 2017, and up from 502 employees in the year ago period.
“We are pleased with Limelight’s third quarter results that showed sequential improvements even in a seasonally weak quarter, and marked record achievements across multiple key financial and non-financial metrics. Customers continue to reward Limelight’s performance gains by sending us more business, and we believe we are continuing to take market share. Pricing discipline and operational efficiencies are driving massive gains in gross margin, and the significant and continuing improvement in our Net Promoter Score confirms our customer’s growing satisfaction with the value they obtain from Limelight,” said Bob Lento, Chief Executive Officer at Limelight.
“In light of the strength of our results, we are again raising guidance for Limelight’s full year revenue, gross margin, non-GAAP earnings per share, and Adjusted EBITDA.  We foresee Limelight’s 2017 operating performance to be our best ever, and we plan on improving further in 2018.  As we’ve said before, we operate in a healthy and growing industry, we are proud to serve our customers, we are a good partner for our vendors, we are a desirable employer, and we are acutely focused on delivering exceptional shareholder returns,” Mr. Lento added. 




Exhibit 99.1

Based on current conditions, for the full-year 2017, we are providing the following updates to our previously announced guidance:
Limelight Networks, Inc.
2017 Guidance
 
 
 
 
 
 
 
 
 
 
 
October 18, 2017
 
July 26, 2017
 
April 24, 2017
 
February 8, 2017
Revenue
 
$182 to $185 million
 
$180 to $182 million
 
$177 to $181 million

$175 to $180 million
 
 

 

 
 
 
 
Gross margin percentage
 
Expansion of more than 450 basis points over 2016
 
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
 
$0.06 to $0.08
 
$0.05 to $0.07
 
$0.03 to $0.06

$0.02 to $0.06
 
 

 

 
 
 
 
Adjusted EBITDA
 
$26 to $29 million
 
$24 to $28 million
 
$23 to $27 million

$22 to $27 million
 
 

 

 
 
 
 
Capital expenditures
 
Approx. $20 million
 
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)
 
September 30,
2017
 
June 30,
2017
 
December 31,
2016
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
20,744

 
$
22,972

 
$
21,734

Marketable securities
36,948

 
37,624

 
44,453

Accounts receivable, net
28,712

 
28,154

 
27,418

Income taxes receivable
102

 
112

 
125

Prepaid expenses and other current assets
4,453

 
4,121

 
4,865

Total current assets
90,959

 
92,983

 
98,595

Property and equipment, net
29,835

 
30,415

 
30,352

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes
1,393

 
1,307

 
1,105

Goodwill
76,925

 
77,032

 
76,243

Other assets
1,794

 
1,802

 
1,794

Total assets
$
200,946

 
$
203,579

 
$
208,129

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
8,804

 
$
10,763

 
$
8,790

Deferred revenue
1,694

 
1,741

 
2,138

Income taxes payable
383

 
334

 
188

Provision for litigation
18,000

 
18,000

 
18,000

Other current liabilities
15,665

 
12,722

 
12,836

Total current liabilities
44,546

 
43,560

 
41,952

Deferred income taxes
146

 
147

 
152

Deferred revenue, less current portion
15

 
15

 
22

Provision for litigation, less current portion
13,500

 
18,000

 
27,000

Other long-term liabilities
859

 
1,057

 
1,435

Total liabilities
59,066

 
62,779

 
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; 109,638, 109,248 and 107,059 shares issued and outstanding at September 30, 2017, June 30, 2017 and December 31, 2016, respectively
110

 
109

 
107

Additional paid-in capital
499,487

 
497,018

 
490,819

Accumulated other comprehensive loss
(8,679
)
 
(9,045
)
 
(11,038
)
Accumulated deficit
(349,038
)
 
(347,282
)
 
(342,320
)
Total stockholders’ equity
141,880

 
140,800

 
137,568

Total liabilities and stockholders’ equity
$
200,946

 
$
203,579

 
$
208,129

 
 
 
 
 
 

 



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
 
2017
 
2017
 
Change
 
2016
 
Change
 
2017
 
2016
 
Change
Revenues
$
46,069

 
$
45,370

 
2
 %
 
$
39,473

 
17
 %
 
$
136,173

 
$
124,456

 
9
 %
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
19,287

 
19,464

 
(1
)%
 
18,834

 
2
 %
 
57,758

 
59,214
 
(2
)%
Depreciation — network
4,506

 
4,531

 
(1
)%
 
4,401

 
2
 %
 
13,594

 
13,558
 
 %
Total cost of revenue
23,793

 
23,995

 
(1
)%
 
23,235

 
2
 %
 
71,352

 
72,772
 
(2
)%
Gross profit
22,276

 
21,375

 
4
 %
 
16,238

 
37
 %
 
64,821

 
51,684
 
25
 %
Gross profit percentage
48.4
%
 
47.1
%
 
 
 
41.1
%
 
 
 
47.6
%
 
41.5
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
8,079

 
6,804

 
19
 %
 
8,033

 
1
 %
 
23,397

 
22,082
 
6
 %
Sales and marketing (1)
8,836

 
8,997

 
(2
)%
 
7,711

 
15
 %
 
27,100

 
24,730
 
10
 %
Research and development (1)
6,443

 
6,715

 
(4
)%
 
5,626

 
15
 %
 
19,377

 
18,241
 
6
 %
Depreciation and amortization
603

 
597

 
1
 %
 
613

 
(2
)%
 
1,789

 
1,862
 
(4
)%
Provision for litigation

 

 
NA

 

 
NA

 

 
54,000
 
NA

Total operating expenses
23,961

 
23,113

 
4
 %
 
21,983

 
9
 %
 
71,663

 
120,915
 
(41
)%
Operating loss
(1,685
)
 
(1,738
)
 
(3
)%
 
(5,745
)
 
(71
)%
 
(6,842
)
 
(69,231)
 
(90
)%
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(18
)
 
(10
)
 
80
 %
 
(406
)
 
(96
)%
 
(42
)
 
(865)
 
(95
)%
Interest income
127

 
121

 
5
 %
 
8

 
1,488
 %
 
365

 
22
 
1,559
 %
Other, net
8

 
153

 
(95
)%
 
151

 
(95
)%
 
249

 
472
 
(47
)%
Total other income (expense)
117

 
264

 
(56
)%
 
(247
)
 
(147
)%
 
572

 
(371)
 
(254
)%
Loss before income taxes
(1,568
)
 
(1,474
)
 
6
 %
 
(5,992
)
 
(74
)%
 
(6,270
)
 
(69,602)
 
(91
)%
Income tax expense
188

 
151

 
25
 %
 
130

 
45
 %
 
448

 
404
 
11
 %
Net loss
$
(1,756
)
 
$
(1,625
)
 
8
 %
 
$
(6,122
)
 
(71
)%
 
(6,718
)
 
(70,006)
 
(90
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic and diluted
$
(0.02
)
 
$
(0.01
)
 
 
 
$
(0.06
)
 
 
 
(0.06
)
 
(0.67
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
109,342

 
108,422

 
 
 
104,860

 
 
 
108,376

 
103,819

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2017
 
2017
 
2016
 
2017
 
2016
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
352

 
$
364

 
$
209

 
$
1,075

 
$
1,118

General and administrative
1,565

 
1,674

 
1,616

 
4,773

 
5,119

Sales and marketing
611

 
617

 
641

 
1,848

 
2,016

Research and development
584

 
600

 
521

 
1,746

 
1,523

Total share-based compensation
$
3,112

 
$
3,255

 
$
2,987

 
$
9,442

 
$
9,776

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,506

 
$
4,531

 
$
4,401

 
$
13,594

 
$
13,558

Other depreciation and amortization
603

 
597

 
611

 
1,789

 
1,848

Amortization of intangible assets

 

 
2

 

 
14

Total depreciation and amortization
$
5,109

 
$
5,128

 
$
5,014

 
$
15,383

 
$
15,420

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and marketable securities:
$
(2,904
)
 
$
(232
)
 
$
43,515

 
$
(8,495
)
 
$
1,398

 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
753

 
779

 
875

 
753

 
875

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
535

 
533

 
502

 
535

 
502





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,
 
2017
 
2017
 
2016
 
2017
 
2016
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(1,756
)
 
$
(1,625
)
 
$
(6,122
)
 
$
(6,718
)
 
$
(70,006
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,109

 
5,128

 
5,014

 
15,383

 
15,420

Share-based compensation
3,112

 
3,255

 
2,987

 
9,442

 
9,776

Provision for litigation

 

 

 

 
54,000

Foreign currency remeasurement (gain) loss
79

 
290

 
343

 
658

 
509

Deferred income taxes
(73
)
 
(94
)
 
(39
)
 
(217
)
 
(25
)
Gain on sale of property and equipment
(2
)
 
(17
)
 
(162
)
 
(94
)
 
(296
)
Accounts receivable charges
242

 
241

 
69

 
732

 
36

Amortization of premium on marketable securities
65

 
80

 

 
228

 
19

Realized loss on sale of marketable securities

 

 

 

 
32

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(800
)
 
(2,204
)
 
1,944

 
(2,026
)
 
3,901

Prepaid expenses and other current assets
(322
)
 
(47
)
 
941

 
545

 
4,333

Income taxes receivable
13

 
(8
)
 
16

 
34

 
54

Other assets
13

 
11

 
50

 
21

 
558

Accounts payable and other current liabilities
2,048

 
3,861

 
1,769

 
4,749

 
(670
)
Deferred revenue
(47
)
 
(101
)
 
(1,091
)
 
(450
)
 
(1,552
)
Income taxes payable
46

 
138

 
(21
)
 
180

 
(76
)
Payments for provision for litigation
(4,500
)
 
(4,500
)
 
(4,500
)
 
(13,500
)
 
(4,500
)
Other long term liabilities
(202
)
 
(185
)
 
(213
)
 
(584
)
 
(550
)
Net cash provided by operating activities
3,025

 
4,223

 
985

 
8,383

 
10,963

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
(2,864
)
 
(2,993
)
 

 
(10,383
)
 

Sale and maturities of marketable securities
3,500

 
6,994

 

 
17,744

 
28,315

Change in restricted cash

 

 
62,790

 

 

Purchases of property and equipment
(5,328
)
 
(4,733
)
 
(2,986
)
 
(15,806
)
 
(4,666
)
Proceeds from sale of property and equipment
3

 
22

 

 
83

 

Net cash (used in) provided by investing activities
(4,689
)
 
(710
)
 
59,804

 
(8,362
)
 
23,649

Financing activities
 
 
 
 
 
 
 
 
 
Principal payments on capital lease obligations

 

 
(4,207
)
 

 
(4,685
)
Payment of employee tax withholdings related to restricted stock vesting
(655
)
 
(880
)
 
(362
)
 
(2,571
)
 
(1,306
)
Proceeds from line of credit

 

 
(12,790
)
 

 

Proceeds from employee stock plans
12

 
1,077

 
48

 
1,200

 
904

Net cash (used in) provided by financing activities
(643
)
 
197

 
(17,311
)
 
(1,371
)
 
(5,087
)
Effect of exchange rate changes on cash and cash equivalents
79

 
110

 
37

 
360

 
195

Net increase (decrease) in cash and cash equivalents
(2,228
)
 
3,820

 
43,515

 
(990
)
 
29,720

Cash and cash equivalents, beginning of period
22,972

 
19,152

 
30,885

 
21,734

 
44,680

Cash and cash equivalents, end of period
$
20,744

 
$
22,972

 
$
74,400

 
$
20,744

 
$
74,400

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
 
Nine Months Ended
 
September 30, 2017
 
June 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(1,756
)
 
$
(0.02
)
 
$
(1,625
)
 
$
(0.01
)
 
$
(6,122
)
 
$
(0.06
)
 
$
(6,718
)
 
$
(0.06
)
 
$
(70,006
)
 
$
(0.67
)
Provision for litigation

 

 

 

 

 

 

 

 
54,000

 
0.52

Share-based compensation
3,112

 
0.03

 
3,255

 
0.03

 
2,987

 
0.03

 
9,442

 
0.09

 
9,776

 
0.09

Litigation expenses
863

 
0.01

 
1,276

 
0.01

 
2,837

 
0.03

 
4,048

 
0.04

 
5,286

 
0.05

Amortization of intangible assets

 

 

 

 
2

 
0.00

 

 

 
14

 
0.00

Non-GAAP net income (loss)
$
2,219

 
$
0.02

 
$
2,906

 
$
0.03

 
$
(296
)
 
$
0.00

 
$
6,772

 
$
0.06

 
$
(930
)
 
$
(0.01
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
109,342

 
 
 
108,422

 
 
 
104,860

 
 
 
108,376

 
 
 
103,819



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,
 
2017
 
2017
 
2016
 
2017
 
2016
U.S. GAAP net loss
$
(1,756
)
 
$
(1,625
)
 
$
(6,122
)
 
$
(6,718
)
 
$
(70,006
)
Depreciation and amortization
5,109

 
5,128

 
5,014

 
15,383

 
15,420

Interest expense
18

 
10

 
406

 
42

 
865

Interest and other (income) expense
(135
)
 
(274
)
 
(159
)
 
(614
)
 
(494
)
Income tax expense
188

 
151

 
130

 
448

 
404

EBITDA
$
3,424

 
$
3,390

 
$
(731
)
 
$
8,541

 
$
(53,811
)
Provision for litigation

 

 

 

 
54,000

Share-based compensation
3,112

 
3,255

 
2,987

 
9,442

 
9,776

Litigation expenses
863

 
1,276

 
2,837

 
4,048

 
5,286

Adjusted EBITDA
$
7,399

 
$
7,921

 
$
5,093

 
$
22,031

 
$
15,251

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.



Exhibit 99.1

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 October 18, 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, 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 Limelight Orchestrate Platform includes a global infrastructure with a fully-integrated suite of capabilities and services to help you address all your content delivery needs. The Orchestrate Platform solves your most important content delivery challenges so you can deliver the next great digital experience anywhere. For more information, please visit www.limelight.com and follow us on Twitter, Facebook and LinkedIn.
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
ir@llnw.com




Exhibit 99.1

Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ



(Back To Top)