Limelight Networks (LLNW) Announces Actions to Better Position the Company for Improved Growth and Profitability
- S&P 500, Dow hit record highs on upbeat earnings, strong retail sales
- Thermo Fisher Scientific (TMO) to Acquire PPD, Inc. (PPD) for $47.50/sh, $17.4 Billion
- U.S. retail sales surge; weekly jobless claims drop to one-year low
- Dell (DELL) Gains on Spin-Off of its 81% Stake in VMware (VMW), Analysts Bulled-Up as It Could Unlock $20 Per Share of Value for DELL
- Cathie Wood's ARK Buys 750K Shares of Coinbase (COIN), Sells 240K Shares of Tesla (TSLA)
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a leading provider of video delivery and edge cloud access services, today announced actions that it is taking to improve execution, profitability and accelerate growth. The initiatives align with the Company’s three priorities outlined in February.
“During our year-end conference call, we shared a refined strategy to ensure our near- and long-term success that focuses on three key areas. The first is improving our core CDN business by pursuing a leadership position in proactive client performance while improving our cost structure. The actions we are announcing today are the first step, and we expect to continue to improve our growth and profitability by also expanding our core business, securing greater share of traffic and spend from existing customers while also growing our pipeline of new opportunities. Additionally, we are exploring opportunities that extend our core business. I am encouraged by the progress we have made in our first 30 days and the actions we have taken,” said Bob Lyons, President and Chief Executive Officer.
Consistent with the approach outlined on February 11, the company is taking the following steps to improve its core CDN business, specifically, client performance and operating efficiency. Limelight has:
- Implemented a simplified operating model that improves agility and productivity;
- Prioritized resources on the continuous proactive improvement of client performance; and,
- Improved organizational productivity that results in an annual cash cost savings of approximately $15 million – including a targeted workforce reduction.
The reduction has decreased the company’s workforce by approximately 16% and results in a first-quarter pre-tax cash charge of approximately $3 million related to severance, benefits and transition assistance.
“This reduction in force, while difficult, is an essential part of the disciplined planning and work we need to accomplish to capture the significant opportunity ahead of us. Our efforts to date give us confidence that we will be able to achieve 2021 adjusted EBITDA between $20 and $30 million. We will provide additional financial guidance in connection with our first quarter earnings release.
“Over the next 30 days, we will continue to intently focus on improving the business with a specific focus on improving our gross margins and growing our top line. We look forward to updating you on our progress as part of our first quarter earnings release next month,” said Lyons.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cadence Design Systems (CDNS) Acquires Pointwise
- Biomerica, Inc. (BMRA) reported consolidated sales of $3.62 million for the fiscal third quarter
- EQT Corp. (EQT) Issues Statement in Support of Reinstating Federal Methane Rule
Create E-mail Alert Related CategoriesCorporate News, Guidance, Management Comments
Related EntitiesTwitter, Layoffs, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!