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, 2018
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, 2018, Limelight Networks, Inc. issued a press release regarding its financial results for the third quarter ended September 30, 2018, 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, 2018 | By: | /s/ Michael DiSanto | ||||
Michael DiSanto Chief Administrative and Legal Officer & Secretary | ||||||
EXHIBIT INDEX
Exhibit Number | Description | |
99.1 | ||
Exhibit 99.1
October 18, 2018
Limelight Networks(R) Reports Financial Results for the Third Quarter of 2018
• | Revenue of $49.3 million, up 7 percent year over year |
• | GAAP basic EPS of break-even and Non-GAAP EPS of $0.03 |
• | Operating cash inflow of over $11 million, highest in over a decade |
• | Cash and marketable securities of $52.7 million |
• | Confirming guidance and tightening ranges with lower capital expenditures |
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a leading provider of edge cloud services, today reported revenue of $49.3 million for the third quarter of 2018, up 7% compared to $46.1 million in the third quarter of 2017. Currency negatively impacted year-over-year comparison by $0.2 million, or less than one percent.
Gross margin was 48.7% in the third quarter of 2018, an increase of 30 basis points from 48.4% in the third quarter of 2017.
On a GAAP basis, Limelight reported a net loss of $0.3 million, or break-even per basic share for the third quarter of 2018, compared to a net loss of $1.8 million, or $0.02 per basic share, in the third quarter of 2017.
Non-GAAP net income was $3.2 million, or $0.03 per basic share, for the third quarter of 2018, compared to non-GAAP net income of $2.2 million, or $0.02 per basic share, in the third quarter of 2017.
EBITDA was $4.3 million for the third quarter of 2018, compared to $3.4 million for the third quarter of 2017. Adjusted EBITDA was $7.7 million for the third quarter of 2018, compared to $7.4 million for the third quarter of 2017.
Limelight ended the third quarter with 551 employees and employee equivalents, up from 549 at the end of the second quarter of 2018, and up from 535 in the year ago period.
“We are pleased with Limelight’s third quarter results that showed year over year 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 gains in gross margin and overall profitability, and at the same time, the continuing improvement in an already strong 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 confident we will finish 2018 ahead of the expectations we set at the start of the year and within the range of outcomes we laid out last quarter. Importantly, our focus on new initiatives is yielding results. The two-way partnership with Tencent is exciting for the near term. The Ericsson initiative and the Realtime streaming opportunities should drive revenue and margin growth in the medium-term and our strategic focus on edge services will contribute to meaningful growth and profitability in the long-term. While there is opportunity to do even better, we are very pleased with our performance on multiple fronts. Our talented and dedicated employees continue to enhance our strategic focus while driving ever-higher operating discipline. Altogether, we believe we are building a better Limelight for all stakeholders and remain acutely focused on delivering exceptional shareholder returns,” Mr. Lento added.
Exhibit 99.1
Based on current conditions, for the full-year 2018, we are providing the following updates to our previously announced guidance.
2018 Guidance Table
Limelight Networks, Inc. | ||||||||
2018 Guidance | ||||||||
October 18, 2018 | July 19, 2018 | April 19, 2018 | February 7, 2018 | |||||
Revenue | No change | $200 to $203 million | $198 to $202 million | $196 to $200 million | ||||
Gross margin percentage | No change | No change | Expansion of more than 150 basis points over 2017 | Expansion of more than 100 basis points over 2017 | ||||
GAAP EPS | $0.12 to $0.14 | No change | $0.07 to $0.11 | $(0.07) to $(0.03) | ||||
Non-GAAP EPS | $0.14 to $0.17 | No change | $0.13 to $0.17 | $0.11 to $0.15 | ||||
Adjusted EBITDA | $35 to $37 million | No change | $33 to $37 million | $32 to $36 million | ||||
Capital expenditures | Below $18 million | Below $20 million | $20 to $22 million | $22 to $24 million | ||||
Exhibit 99.1
Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
September 30, 2018 | June 30, 2018 | December 31, 2017 | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 28,678 | $ | 28,719 | $ | 20,912 | |||||
Marketable securities | 23,957 | 16,851 | 28,404 | ||||||||
Accounts receivable, net | 26,147 | 31,862 | 32,381 | ||||||||
Income taxes receivable | 154 | 153 | 98 | ||||||||
Prepaid expenses and other current assets | 17,859 | 18,147 | 5,397 | ||||||||
Total current assets | 96,795 | 95,732 | 87,192 | ||||||||
Property and equipment, net | 27,392 | 26,303 | 28,991 | ||||||||
Marketable securities, less current portion | 40 | 40 | 40 | ||||||||
Deferred income taxes | 1,590 | 1,550 | 1,506 | ||||||||
Goodwill | 76,683 | 76,648 | 77,054 | ||||||||
Other assets | 2,434 | 2,235 | 1,665 | ||||||||
Total assets | $ | 204,934 | $ | 202,508 | $ | 196,448 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 8,976 | $ | 6,179 | $ | 4,439 | |||||
Deferred revenue | 853 | 965 | 1,187 | ||||||||
Income taxes payable | 111 | 219 | 452 | ||||||||
Provision for litigation | 13,500 | 18,000 | 18,000 | ||||||||
Other current liabilities | 13,804 | 12,269 | 18,507 | ||||||||
Total current liabilities | 37,244 | 37,632 | 42,585 | ||||||||
Deferred income taxes | 174 | 124 | 144 | ||||||||
Deferred revenue, less current portion | 68 | 37 | 16 | ||||||||
Provision for litigation, less current portion | — | — | 9,000 | ||||||||
Other long-term liabilities | 385 | 389 | 558 | ||||||||
Total liabilities | 37,871 | 38,182 | 52,303 | ||||||||
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; 113,198, 112,478, and 110,824 shares issued and outstanding at September 30, 2018, June 30, 2018 and December 31, 2017, respectively | 113 | 112 | 111 | ||||||||
Additional paid-in capital | 509,846 | 506,684 | 502,312 | ||||||||
Accumulated other comprehensive loss | (9,477 | ) | (9,324 | ) | (8,328 | ) | |||||
Accumulated deficit | (333,419 | ) | (333,146 | ) | (349,950 | ) | |||||
Total stockholders’ equity | 167,063 | 164,326 | 144,145 | ||||||||
Total liabilities and stockholders’ equity | $ | 204,934 | $ | 202,508 | $ | 196,448 | |||||
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 | |||||||||||||||||||||
2018 | 2018 | Change | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||
Revenue | $ | 49,315 | $ | 50,249 | (2 | )% | $ | 46,069 | 7 | % | $ | 151,678 | $ | 136,173 | 11 | % | ||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||||
Cost of services (1) | 21,519 | 21,206 | 1 | % | 19,287 | 12 | % | 63,779 | 57,758 | 10 | % | |||||||||||||||||
Depreciation — network | 3,761 | 4,196 | (10 | )% | 4,506 | (17 | )% | 12,337 | 13,594 | (9 | )% | |||||||||||||||||
Total cost of revenue | 25,280 | 25,402 | — | % | 23,793 | 6 | % | 76,116 | 71,352 | 7 | % | |||||||||||||||||
Gross profit | 24,035 | 24,847 | (3 | )% | 22,276 | 8 | % | 75,562 | 64,821 | 17 | % | |||||||||||||||||
Gross profit percentage | 48.7 | % | 49.4 | % | 48.4 | % | 49.8 | % | 47.6 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
General and administrative (1) | 7,851 | 7,517 | 4 | % | 8,079 | (3 | )% | 24,890 | 23,397 | 6 | % | |||||||||||||||||
Sales and marketing (1) | 9,766 | 10,022 | (3 | )% | 8,836 | 11 | % | 30,068 | 27,100 | 11 | % | |||||||||||||||||
Research and development (1) | 5,882 | 6,073 | (3 | )% | 6,443 | (9 | )% | 18,294 | 19,377 | (6 | )% | |||||||||||||||||
Depreciation and amortization | 616 | 633 | (3 | )% | 603 | 2 | % | 1,837 | 1,789 | 3 | % | |||||||||||||||||
Total operating expenses | 24,115 | 24,245 | (1 | )% | 23,961 | 1 | % | 75,089 | 71,663 | 5 | % | |||||||||||||||||
Operating (loss) income | (80 | ) | 602 | (113 | )% | (1,685 | ) | (95 | )% | 473 | (6,842 | ) | (107 | )% | ||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense | (10 | ) | (7 | ) | NM | (18 | ) | NM | (76 | ) | (42 | ) | NM | |||||||||||||||
Interest income | 177 | 134 | 32 | % | 127 | 39 | % | 440 | 365 | 21 | % | |||||||||||||||||
Settlement and patent license income | — | 14,900 | NM | — | NM | 14,900 | — | NM | ||||||||||||||||||||
Other, net | (246 | ) | (221 | ) | NM | 8 | NM | (355 | ) | 249 | NM | |||||||||||||||||
Total other (expense) income | (79 | ) | 14,806 | NM | 117 | NM | 14,909 | 572 | NM | |||||||||||||||||||
(Loss) income before income taxes | (159 | ) | 15,408 | NM | (1,568 | ) | NM | 15,382 | (6,270 | ) | NM | |||||||||||||||||
Income tax expense | 113 | 249 | NM | 188 | NM | 347 | 448 | NM | ||||||||||||||||||||
Net (loss) income | $ | (272 | ) | $ | 15,159 | NM | $ | (1,756 | ) | NM | 15,035 | (6,718 | ) | NM | ||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||||||
Basic | $ | — | $ | 0.14 | $ | (0.02 | ) | 0.13 | (0.06 | ) | ||||||||||||||||||
Diluted | $ | — | $ | 0.13 | $ | (0.02 | ) | 0.13 | (0.06 | ) | ||||||||||||||||||
Weighted average shares used in per share calculation: | ||||||||||||||||||||||||||||
Basic | 112,760 | 111,356 | 109,342 | 111,626 | 108,376 | |||||||||||||||||||||||
Diluted | 112,760 | 120,033 | 109,342 | 120,025 | 108,376 | |||||||||||||||||||||||
(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, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Share-based compensation: | |||||||||||||||||||
Cost of services | $ | 352 | $ | 350 | $ | 352 | $ | 1,059 | $ | 1,075 | |||||||||
General and administrative | 1,887 | 1,969 | 1,565 | 5,666 | 4,773 | ||||||||||||||
Sales and marketing | 638 | 633 | 611 | 1,874 | 1,848 | ||||||||||||||
Research and development | 544 | 605 | 584 | 1,746 | 1,746 | ||||||||||||||
Total share-based compensation | $ | 3,421 | $ | 3,557 | $ | 3,112 | $ | 10,345 | $ | 9,442 | |||||||||
Depreciation and amortization: | |||||||||||||||||||
Network-related depreciation | $ | 3,761 | $ | 4,196 | $ | 4,506 | $ | 12,337 | $ | 13,594 | |||||||||
Other depreciation and amortization | 616 | 633 | 603 | 1,837 | 1,789 | ||||||||||||||
Total depreciation and amortization | $ | 4,377 | $ | 4,829 | $ | 5,109 | $ | 14,174 | $ | 15,383 | |||||||||
Net increase (decrease) in cash, cash equivalents and marketable securities: | $ | 7,065 | $ | 1,875 | $ | (2,904 | ) | $ | 3,319 | $ | (8,495 | ) | |||||||
End of period statistics: | |||||||||||||||||||
Approximate number of active customers | 667 | 689 | 753 | 667 | 753 | ||||||||||||||
Number of employees and employee equivalents | 551 | 549 | 535 | 551 | 535 | ||||||||||||||
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, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
Operating activities | |||||||||||||||||||
Net (loss) income | $ | (272 | ) | $ | 15,159 | $ | (1,756 | ) | $ | 15,035 | $ | (6,718 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||
Depreciation and amortization | 4,377 | 4,829 | 5,109 | 14,174 | 15,383 | ||||||||||||||
Share-based compensation | 3,421 | 3,557 | 3,112 | 10,345 | 9,442 | ||||||||||||||
Settlement and patent license income | — | (14,900 | ) | — | (14,900 | ) | — | ||||||||||||
Foreign currency remeasurement (gain) loss | 64 | (271 | ) | 79 | (97 | ) | 658 | ||||||||||||
Deferred income taxes | (16 | ) | (111 | ) | (73 | ) | (86 | ) | (217 | ) | |||||||||
Gain on sale of property and equipment | (18 | ) | (97 | ) | (2 | ) | (131 | ) | (94 | ) | |||||||||
Accounts receivable charges | 157 | 78 | 242 | 453 | 732 | ||||||||||||||
Amortization of premium on marketable securities | 24 | 25 | 65 | 82 | 228 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | 5,558 | 493 | (800 | ) | 5,781 | (2,026 | ) | ||||||||||||
Prepaid expenses and other current assets | (2,757 | ) | (655 | ) | (322 | ) | (2,530 | ) | 545 | ||||||||||
Income taxes receivable | 7 | 61 | 13 | (56 | ) | 34 | |||||||||||||
Other assets | (192 | ) | (72 | ) | 13 | (759 | ) | 21 | |||||||||||
Accounts payable and other current liabilities | 3,058 | (3,298 | ) | 2,048 | (2,526 | ) | 4,749 | ||||||||||||
Deferred revenue | (82 | ) | 37 | (47 | ) | 85 | (450 | ) | |||||||||||
Income taxes payable | (113 | ) | 160 | 46 | (350 | ) | 180 | ||||||||||||
Payments related to litigation, net | (1,520 | ) | (1,520 | ) | (4,500 | ) | (7,540 | ) | (13,500 | ) | |||||||||
Other long term liabilities | (4 | ) | (19 | ) | (202 | ) | (173 | ) | (584 | ) | |||||||||
Net cash provided by operating activities | 11,692 | 3,456 | 3,025 | 16,807 | 8,383 | ||||||||||||||
Investing activities | |||||||||||||||||||
Purchases of marketable securities | (15,962 | ) | — | (2,864 | ) | (15,962 | ) | (10,383 | ) | ||||||||||
Sale and maturities of marketable securities | 8,850 | 7,000 | 3,500 | 20,365 | 17,744 | ||||||||||||||
Purchases of property and equipment | (4,214 | ) | (4,291 | ) | (5,328 | ) | (10,495 | ) | (15,806 | ) | |||||||||
Proceeds from sale of property and equipment | 18 | 97 | 3 | 131 | 83 | ||||||||||||||
Net cash (used in) provided by investing activities | (11,308 | ) | 2,806 | (4,689 | ) | (5,961 | ) | (8,362 | ) | ||||||||||
Financing activities | |||||||||||||||||||
Payment of employee tax withholdings related to restricted stock vesting | (996 | ) | (1,206 | ) | (655 | ) | (3,808 | ) | (2,571 | ) | |||||||||
Cash paid for purchase of common stock | — | — | — | (3,800 | ) | — | |||||||||||||
Proceeds from employee stock plans | 737 | 4,032 | 12 | 4,799 | 1,200 | ||||||||||||||
Net cash (used in) provided by financing activities | (259 | ) | 2,826 | (643 | ) | (2,809 | ) | (1,371 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (166 | ) | (232 | ) | 79 | (271 | ) | 360 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (41 | ) | 8,856 | (2,228 | ) | 7,766 | (990 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 28,719 | 19,863 | 22,972 | 20,912 | 21,734 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 28,678 | $ | 28,719 | $ | 20,744 | $ | 28,678 | $ | 20,744 | |||||||||
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
(In thousands)
(Unaudited
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||||||||||||||
U.S. GAAP net (loss) income | $ | (272 | ) | $ | — | $ | 15,159 | $ | 0.14 | $ | (1,756 | ) | $ | (0.02 | ) | $ | 15,035 | $ | 0.13 | $ | (6,718 | ) | $ | (0.06 | ) | ||||||||||||||
Settlement and patent license income | — | — | (14,900 | ) | (0.13 | ) | — | — | (14,900 | ) | (0.13 | ) | — | — | |||||||||||||||||||||||||
Share-based compensation | 3,421 | 0.03 | 3,557 | 0.03 | 3,112 | 0.03 | 10,345 | 0.09 | 9,442 | 0.09 | |||||||||||||||||||||||||||||
Litigation expenses | 19 | — | 215 | — | 863 | 0.01 | 2,904 | 0.03 | 4,048 | 0.04 | |||||||||||||||||||||||||||||
Non-GAAP net income | $ | 3,168 | $ | 0.03 | $ | 4,031 | $ | 0.04 | $ | 2,219 | $ | 0.02 | $ | 13,384 | $ | 0.12 | $ | 6,772 | $ | 0.06 | |||||||||||||||||||
Weighted average shares used in per share calculation: | 112,760 | 111,356 | 109,342 | 111,626 | 108,376 | ||||||||||||||||||||||||||||||||||
Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Income (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, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
U.S. GAAP net (loss) income | $ | (272 | ) | $ | 15,159 | $ | (1,756 | ) | $ | 15,035 | $ | (6,718 | ) | ||||||
Depreciation and amortization | 4,377 | 4,829 | 5,109 | 14,174 | 15,383 | ||||||||||||||
Interest expense | 10 | 7 | 18 | 76 | 42 | ||||||||||||||
Interest and other (income) expense | 69 | 87 | (135 | ) | (85 | ) | (614 | ) | |||||||||||
Income tax expense | 113 | 249 | 188 | 347 | 448 | ||||||||||||||
EBITDA | $ | 4,297 | $ | 20,331 | $ | 3,424 | $ | 29,547 | $ | 8,541 | |||||||||
Settlement and patent license income | — | (14,900 | ) | — | (14,900 | ) | — | ||||||||||||
Share-based compensation | 3,421 | 3,557 | 3,112 | 10,345 | 9,442 | ||||||||||||||
Litigation expenses | 19 | 215 | 863 | 2,904 | 4,048 | ||||||||||||||
Adjusted EBITDA | $ | 7,737 | $ | 9,203 | $ | 7,399 | $ | 27,896 | $ | 22,031 | |||||||||
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 October 18, 2018, 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) 2018 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