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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 17, 2019
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)

Securities registered pursuant to Section 12(b) of the Act:
 
 
 
 
 
Title of each class
 
Trading Symbol(s)
 
Name of exchange on which registered
Common stock, par value $0.001 per share
 
LLNW
 
NASDAQ
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
 
 
 
 
 
Emerging growth company
 
¨

 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
¨








Item 2.02
Results of Operations and Financial Condition.
On July 17, 2019, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2019, 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: July 17, 2019
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary




 




(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

July 17, 2019
Limelight Networks(R) Reports Financial Results for the Second Quarter of 2019
Q2 Revenue of $45.9 million
Q2 GAAP basic EPS of $(0.06) and Non-GAAP EPS of $(0.03)
Cash and marketable securities of $29.0 million
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a leading provider of edge cloud services, today reported revenue of $45.9 million for the second quarter of 2019, down 9% compared to $50.2 million in the second quarter of 2018. Currency negatively impacted year-over-year comparison by $0.3 million.
Limelight reported a net loss of $7.2 million, or $0.06 per basic share for the second quarter of 2019, compared to net income of $15.2 million, or $0.14 per basic share and $0.13 per fully diluted share, in the second quarter of 2018. Net income in the second quarter of 2018 included $14.9 million of non-operating income ($0.13 per basic share and $0.12 per fully diluted share) related to a settlement and patent license agreement.
Non-GAAP net loss was $3.5 million, or $0.03 per basic share, for the second quarter of 2019, compared to Non-GAAP net income of $4.0 million, or $0.04 per basic share, in the second quarter of 2018.
EBITDA was negative $2.2 million for the second quarter of 2019, compared to $20.3 million for the second quarter of 2018, which included the positive impact of $14.9 million of non-operating income related to the settlement and patent license agreement. Adjusted EBITDA was $1.4 million for the second quarter of 2019, compared to $9.2 million for the second quarter of 2018.
Limelight ended the second quarter with 594 employees and employee equivalents, up from 562 at the end of the first quarter of 2019, and up from 549 at the end of the second quarter of 2018.
“Second quarter results were in line with analyst expectations,” said Bob Lento, Chief Executive Officer. “Building upon our sequential top-line growth, we continue to anticipate year-over-year growth accelerating in the back half of the year and into 2020. We believe that the fourth quarter, in particular, will set us up for industry leading growth in revenue in 2020. During the first half of the year, we have achieved significant increases in capacity through software enhancements and investments in our infrastructure which leaves us well positioned to take advantage of the massive growth in demand for digital video services that most industry analysts are predicting for the near future.”
We are updating guidance to reflect the impact of timing issues on completion of certain major customer and partner-driven initiatives in 2019. Based on current conditions, we expect 2019 revenue to be between $200 and $210 million dollars. GAAP net loss is expected to be approximately $0.10 per share and Non-GAAP earnings per share should be near breakeven. Capital expenditures should be approximately $25 million dollars.







Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
24,698

 
$
16,499

 
$
25,383

Marketable securities
4,224

 
22,142

 
25,083

Accounts receivable, net
31,098

 
29,505

 
26,041

Income taxes receivable
125

 
124

 
122

Prepaid expenses and other current assets
8,739

 
12,276

 
14,789

Total current assets
68,884

 
80,546

 
91,418

Property and equipment, net
35,531

 
32,996

 
27,378

Operating lease right of use assets
2,701

 
3,012

 

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes
1,443

 
1,508

 
1,462

Goodwill
76,848

 
76,707

 
76,407

Other assets
5,848

 
4,199

 
2,220

Total assets
$
191,295

 
$
199,008

 
$
198,925

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
14,346

 
$
17,858

 
$
9,216

Deferred revenue
1,331

 
1,524

 
1,883

Operating lease liability obligations
1,579

 
1,620

 

Income taxes payable
270

 
186

 
124

Provision for litigation

 
4,500

 
9,000

Other current liabilities
15,227

 
11,656

 
12,922

Total current liabilities
32,753

 
37,344

 
33,145

Operating lease liability obligations, less current portion
1,325

 
1,630

 

Deferred income taxes
140

 
128

 
152

Deferred revenue, less current portion
149

 
105

 
42

Other long-term liabilities
283

 
263

 
435

Total liabilities
34,650

 
39,470

 
33,774

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; 115,760 114,874 and 114,246 shares issued and outstanding at June 30, 2019, March 31, 2019 and December 31, 2018, respectively
116

 
115

 
114

Additional paid-in capital
520,375

 
516,251

 
513,682

Accumulated other comprehensive loss
(9,483
)
 
(9,657
)
 
(10,033
)
Accumulated deficit
(354,363
)
 
(347,171
)
 
(338,612
)
Total stockholders’ equity
156,645

 
159,538

 
165,151

Total liabilities and stockholders’ equity
$
191,295

 
$
199,008

 
$
198,925

 
 
 
 
 
 

 



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
 
2019
 
2019
 
Change
 
2018
 
Change
 
2019
 
2018
 
Change
Revenue
$
45,904

 
$
43,280

 
6
 %
 
$
50,249

 
(9
)%
 
$
89,184

 
$
102,363

 
(13
)%
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
22,769

 
22,941

 
(1
)%
 
21,206

 
7
 %
 
45,710

 
42,260

 
8
 %
Depreciation — network
4,628

 
4,317

 
7
 %
 
4,196

 
10
 %
 
8,944

 
8,576

 
4
 %
Total cost of revenue
27,397

 
27,258

 
1
 %
 
25,402

 
8
 %
 
54,654

 
50,836

 
8
 %
Gross profit
18,507

 
16,022

 
16
 %
 
24,847

 
(26
)%
 
34,530

 
51,527

 
(33
)%
Gross profit percentage
40.3
%
 
37.0
%
 
 
 
49.4
%
 
 
 
38.7
%
 
50.3
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
8,340

 
7,535

 
11
 %
 
7,517

 
11
 %
 
15,875

 
17,038

 
(7
)%
Sales and marketing (1)
10,994

 
10,972

 
 %
 
10,022

 
10
 %
 
21,966

 
20,302

 
8
 %
Research and development (1)
6,013

 
5,901

 
2
 %
 
6,073

 
(1
)%
 
11,915

 
12,412

 
(4
)%
Depreciation and amortization
127

 
245

 
(48
)%
 
633

 
(80
)%
 
372

 
1,221

 
(70
)%
Total operating expenses
25,474

 
24,653

 
3
 %
 
24,245

 
5
 %
 
50,128

 
50,973

 
(2
)%
Operating (loss) income
(6,967
)
 
(8,631
)
 
NM

 
602

 
NM

 
(15,598
)
 
554

 
NM

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(10
)
 
(10
)
 
NM

 
(7
)
 
NM

 
(20
)
 
(66
)
 
NM

Interest income
110

 
212

 
NM

 
134

 
NM

 
321

 
263

 
NM

Settlement and patent license income

 

 
NM

 
14,900

 
NM

 

 
14,900

 
NM

Other, net
(70
)
 
(6
)
 
NM

 
(221
)
 
NM

 
(76
)
 
(109
)
 
NM

Total other income (expense)
30

 
196

 
NM

 
14,806

 
NM

 
225

 
14,988

 
NM

(Loss) income before income taxes
(6,937
)
 
(8,435
)
 
NM

 
15,408

 
NM

 
(15,373
)
 
15,542

 
NM

Income tax expense
255

 
124

 
NM

 
249

 
NM

 
378

 
234

 
NM

Net (loss) income
$
(7,192
)
 
$
(8,559
)
 
NM

 
$
15,159

 
NM

 
$
(15,751
)
 
$
15,308

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.06
)
 
$
(0.07
)
 
 
 
$
0.14

 
 
 
$
(0.14
)
 
$
0.14

 
 
Diluted
$
(0.06
)
 
$
(0.07
)
 
 
 
$
0.13

 
 
 
$
(0.14
)
 
$
0.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
115,275

 
114,410

 
 
 
111,356

 
 
 
114,843

 
111,059

 
 
Diluted
115,275

 
114,410

 
 
 
120,033

 
 
 
114,843

 
119,454

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2019
 
2019
 
2018
 
2019
 
2018
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
377

 
$
411

 
$
350

 
$
788

 
$
707

General and administrative
2,140

 
2,094

 
1,969

 
4,234

 
3,779

Sales and marketing
598

 
484

 
633

 
1,082

 
1,236

Research and development
534

 
467

 
605

 
1,001

 
1,202

Total share-based compensation
$
3,649

 
$
3,456

 
$
3,557

 
$
7,105

 
$
6,924

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,628

 
$
4,317

 
$
4,196

 
$
8,944

 
$
8,576

Other depreciation and amortization
127

 
245

 
633

 
372

 
1,221

Total depreciation and amortization
$
4,755

 
$
4,562

 
$
4,829

 
$
9,316

 
$
9,797

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and marketable securities:
$
(9,719
)
 
$
(11,825
)
 
$
1,875

 
$
(21,544
)
 
$
(3,746
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
621

 
643

 
689

 
621

 
689

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
594

 
562

 
549

 
594

 
549





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,
 
2019
 
2019
 
2018
 
2019
 
2018
Operating activities
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(7,192
)
 
$
(8,559
)
 
$
15,159

 
$
(15,751
)
 
$
15,308

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4,755

 
4,562

 
4,829

 
9,316

 
9,797

Share-based compensation
3,649

 
3,456

 
3,557

 
7,105

 
6,924

Settlement and patent license income

 

 
(14,900
)
 

 
(14,900
)
Foreign currency remeasurement (gain) loss
(135
)
 
10

 
(271
)
 
(125
)
 
(161
)
Deferred income taxes
82

 
(51
)
 
(111
)
 
31

 
(70
)
(Gain) loss on sale of property and equipment
(21
)
 
(30
)
 
(97
)
 
(51
)
 
(113
)
Accounts receivable charges
437

 
257

 
78

 
694

 
296

Amortization of premium on marketable securities
8

 
12

 
25

 
20

 
58

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(2,031
)
 
(3,720
)
 
493

 
(5,751
)
 
223

Prepaid expenses and other current assets
582

 
(474
)
 
(655
)
 
108

 
227

Income taxes receivable

 
(2
)
 
61

 
(2
)
 
(63
)
Other assets
(1,685
)
 
(1,737
)
 
(72
)
 
(3,422
)
 
(567
)
Accounts payable and other current liabilities
4,230

 
2,243

 
(3,298
)
 
6,473

 
(5,584
)
Deferred revenue
(148
)
 
(297
)
 
37

 
(445
)
 
167

Income taxes payable
81

 
62

 
160

 
143

 
(237
)
Payments related to litigation, net
(1,520
)
 
(1,520
)
 
(1,520
)
 
(3,040
)
 
(6,020
)
Other long term liabilities
22

 
(175
)
 
(19
)
 
(152
)
 
(170
)
Net cash provided by (used in) operating activities
1,114

 
(5,963
)
 
3,456

 
(4,849
)
 
5,115

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
(1,013
)
 
(9,266
)
 

 
(10,279
)
 

Sale and maturities of marketable securities
18,929

 
12,224

 
7,000

 
31,153

 
11,515

Purchases of property and equipment
(11,456
)
 
(5,018
)
 
(4,291
)
 
(16,474
)
 
(6,281
)
Proceeds from sale of property and equipment
17

 
29

 
97

 
46

 
113

Net cash provided by (used in) investing activities
6,477

 
(2,031
)
 
2,806

 
4,446

 
5,347

Financing activities
 
 
 
 
 
 
 
 
 
Payment of employee tax withholdings related to restricted stock vesting
(619
)
 
(894
)
 
(1,206
)
 
(1,513
)
 
(2,812
)
Cash paid for purchase of common stock

 

 

 

 
(3,800
)
Proceeds from employee stock plans
1,095

 
8

 
4,032

 
1,103

 
4,062

Net cash provided by (used in) financing activities
476

 
(886
)
 
2,826

 
(410
)
 
(2,550
)
Effect of exchange rate changes on cash and cash equivalents
132

 
(4
)
 
(232
)
 
128

 
(105
)
Net increase (decrease) in cash and cash equivalents
8,199

 
(8,884
)
 
8,856

 
(685
)
 
7,807

Cash and cash equivalents, beginning of period
16,499

 
25,383

 
19,863

 
25,383

 
20,912

Cash and cash equivalents, end of period
$
24,698

 
$
16,499

 
$
28,719

 
$
24,698

 
$
28,719

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 the settlement and patent license income, share-based compensation and litigation expenses. 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 Adjusted EBITDA as EBITDA adjusted to exclude the settlement and patent license income, share-based compensation and litigation expenses. We use Adjusted EBITDA as a supplemental measure to



Exhibit 99.1

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 Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited
 
Three Months Ended
 
Six Months Ended
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net (loss) income
$
(7,192
)
 
$
(0.06
)
 
$
(8,559
)
 
$
(0.07
)
 
$
15,159

 
$
0.14

 
$
(15,751
)
 
$
(0.14
)
 
$
15,308

 
$
0.14

Settlement and patent license income

 

 

 

 
(14,900
)
 
(0.13
)
 

 

 
(14,900
)
 
(0.13
)
Share-based compensation
3,649

 
0.03

 
3,456

 
0.03

 
3,557

 
0.03

 
7,105

 
0.06

 
6,924

 
0.06

Litigation expenses

 

 

 

 
215

 

 

 

 
2,885

 
0.03

Non-GAAP net (loss) income
$
(3,543
)
 
$
(0.03
)
 
$
(5,103
)
 
$
(0.04
)
 
$
4,031

 
$
0.04

 
$
(8,646
)
 
$
(0.08
)
 
$
10,217

 
$
0.09

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
115,275

 
 
 
114,410

 
 
 
111,356

 
 
 
114,843

 
 
 
111,059


Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Income (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,
 
2019
 
2019
 
2018
 
2019
 
2018
U.S. GAAP net (loss) income
$
(7,192
)
 
$
(8,559
)
 
$
15,159

 
$
(15,751
)
 
$
15,308

Depreciation and amortization
4,755

 
4,562

 
4,829

 
9,316

 
9,797

Interest expense
10

 
10

 
7

 
20

 
66

Interest and other (income) expense
(40
)
 
(206
)
 
87

 
(245
)
 
(154
)
Income tax expense
255

 
124

 
249

 
378

 
234

EBITDA
$
(2,212
)
 
$
(4,069
)
 
$
20,331

 
$
(6,282
)
 
$
25,251

Settlement and patent license income

 

 
(14,900
)
 

 
(14,900
)
Share-based compensation
3,649

 
3,456

 
3,557

 
7,105

 
6,924

Litigation expenses

 

 
215

 

 
2,885

Adjusted EBITDA
$
1,437

 
$
(613
)
 
$
9,203

 
$
823

 
$
20,160

For future periods, we are unable to provide a reconciliation of EBITDA and Adjusted EBITDA to net income (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 877-296-5190 within the United States or +1 412-317-5233 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, 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 17, 2019, 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 Inc., (NASDAQ: LLNW), a leading provider of digital content delivery, video, cloud security, and edge computing services, empowers customers to provide exceptional digital experiences. Limelight’s edge services platform includes a unique combination of global private infrastructure, intelligent software, and expert support services that enable current and future workflows. For more information, please visit www.limelight.com, follow us on Twitter, Facebook and LinkedIn.
Copyright (C) 2019 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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