Form 8-K Limelight Networks, Inc. For: Aug 03

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August 3, 2015 4:08 PM EDT
 
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):
August 3, 2015
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 August 3, 2015, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2015, 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 August 3, 2015 (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: August 3, 2015
 
 
 
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 August 3, 2015 (furnished herewith).


Exhibit 99.1

August 3, 2015
Limelight Networks(R) Reports Financial Results for the Second Quarter of 2015
•
Revenue of $43.8 million and GAAP $0.06 net loss per basic share
•
Non-GAAP net loss of $0.04 per basic share
•
$75 million of cash, cash equivalents and marketable securities
•
2015 revenue guidance raised to between $170 and $174 million
Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $43.8 million for the second quarter which ended June 30, 2015, compared to $41.3 million in the second quarter of 2014, an increase of six percent.
During the second quarter of 2014, revenue from Netflix was $5.4 million. Revenue was also negatively impacted in the second quarter of 2015 by changes in foreign currency of approximately $1.0 million. Adjusting for the impact of these items, revenue increased by 25 percent period over period and 4 percent sequentially.
GAAP gross margins were 41.4% in the second quarter of 2015, up 300 basis points from 38.4% in the second quarter of 2014. Effective April 1, 2015, we reorganized job responsibilities of certain employees from cost of services to research and development, on a prospective basis. This reorganization resulted in approximately $0.75 million, or 170 basis points, of improvement in gross margin period over period.
On a GAAP basis, Limelight reported a loss from continuing operations of $6.4 million, or $0.06 per basic share, for the second quarter of 2015, compared to a loss from continuing operations of $7.1 million, or $0.07 per basic share, in the second quarter of 2014.
Non-GAAP net loss was $4.1 million, or $0.04 per basic share, for the second quarter of 2015 compared to a non-GAAP net loss of $3.6 million, or $0.04 per basic share, in the second quarter of 2014.
EBITDA from continuing operations was negative $1.2 million for the second quarter of 2015 compared to negative $1.9 million for the second quarter of 2014. Adjusted EBITDA was $0.9 million for the second quarter of 2015 compared to $1.3 million for the second quarter of 2014.
Limelight ended the second quarter with 563 employees, up from 533 employees at the end of the first quarter of 2015, and up from 477 employees in the year ago period.
Based on current conditions, for the full-year 2015, Limelight is raising revenue guidance to between $170 and $174 million from our previous guidance provided last quarter of between $164 and $170 million.  Non-GAAP net loss is now expected to be between $0.10 and $0.16 per share, compared to guidance provided last quarter of a net loss of between $0.08 and $0.18 per share. Capital expenditures for the full-year 2015 are expected to be between $22 and $26 million.  Third quarter 2015 revenue is expected to be between $42 and $44 million. In the third quarter of 2014 Netflix revenue was $1.2 million.
Commenting on the results, Chief Executive Officer, Robert Lento said, “We’ve had a strong first half and are focused on achieving continuing revenue growth and margin improvement, and a reduction in cash usage for the second half. I’m very pleased with the improved second quarter performance. Robust revenue growth and the continuing and meaningful improvements in our gross margin, coupled with disciplined control over our expenses, helped deliver one of the best quarterly results in our recent history."
He added, “Over the last eight quarters, we’ve established Limelight as a trusted partner for our customers, offering enhanced products, improved network performance and a better response to their needs to help them grow, compete and thrive. We are in the early stages of realizing the full potential of our financial performance and we will continue to work hard to make meaningful improvements from here.”



Exhibit 99.1


Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
June 30,
2015
 
December 31,
2014
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
40,502

 
$
57,767

Marketable securities
34,415

 
35,317

Accounts receivable, net
31,444

 
22,622

Income taxes receivable
212

 
237

Deferred income taxes
71

 
78

Prepaid expenses and other current assets
9,714

 
9,625

Total current assets
116,358

 
125,646

Property and equipment, net
37,788

 
32,636

Marketable securities, less current portion
40

 
40

Deferred income taxes, less current portion
1,374

 
1,364

Goodwill
76,381

 
76,133

Other intangible assets, net
693

 
1,071

Other assets
4,437

 
4,451

Total assets
$
237,071

 
$
241,341

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
14,339

 
$
7,065

Deferred revenue
4,142

 
3,509

Capital lease obligations
—

 
223

Income taxes payable
185

 
248

Other current liabilities
11,391

 
14,383

Total current liabilities
30,057

 
25,428

Capital lease obligations, less current portion
—

 
135

Deferred income taxes
134

 
170

Deferred revenue, less current portion
89

 
405

Other long-term liabilities
2,585

 
3,040

Total liabilities
32,865

 
29,178

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 at June 30, 2015 and December 31, 2014; 100,440 and 98,409 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
100

 
98

Additional paid-in capital
470,389

 
464,294

Accumulated other comprehensive loss
(9,795
)
 
(7,786
)
Accumulated deficit
(256,488
)
 
(244,443
)
Total stockholders’ equity
204,206

 
212,163

Total liabilities and stockholders’ equity
$
237,071

 
$
241,341


 

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
 
2015
 
2015
 
Change
 
2014
 
Change
 
2015
 
2014
 
Change
Revenues
$
43,795

 
$
42,329

 
3
 %
 
$
41,343

 
6
 %
 
$
86,124

 
$
82,512

 
4
 %
Cost of revenue:
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Cost of services (1)
21,271

 
21,657

 
(2
)%
 
21,326

 
—
 %
 
42,928

 
42,891
 
—
 %
Depreciation — network
4,376

 
4,153

 
5
 %
 
4,144

 
6
 %
 
8,528

 
8,481
 
1
 %
Total cost of revenue
25,647

 
25,810

 
(1
)%
 
25,470

 
1
 %
 
51,456

 
51,372
 
—
 %
Gross profit
18,148

 
16,519

 
10
 %
 
15,873

 
14
 %
 
34,668

 
31,140
 
11
 %
Gross profit percentage
41.4
%
 
39.0
%
 
 
 
38.4
%
 
 
 
40.3
%
 
37.7
%
 
 
Operating expenses:
 
 
 
 
 
 

 
 
 
 
 
 
 
 
General and administrative (1)
6,081

 
6,850

 
(11
)%
 
7,643

 
(20
)%
 
12,932

 
14,671
 
(12
)%
Sales and marketing (1)
10,002

 
10,276

 
(3
)%
 
9,370

 
7
 %
 
20,278

 
19,624
 
3
 %
Research and development (1)
7,646

 
6,263

 
22
 %
 
4,859

 
57
 %
 
13,909

 
9,437
 
47
 %
Depreciation and amortization
635

 
640

 
(1
)%
 
977

 
(35
)%
 
1,276

 
2,043
 
(38
)%
Total operating expenses
24,364

 
24,029

 
1
 %
 
22,849

 
7
 %
 
48,395

 
45,775
 
6
 %
Operating loss
(6,216
)
 
(7,510
)
 
(17
)%
 
(6,976
)
 
(11
)%
 
(13,727
)
 
(14,635)
 
(6
)%
Other income (expense):
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Interest expense
—

 
(4
)
 
(100
)%
 
(7
)
 
(100
)%
 
(4
)
 
(19)
 
(79
)%
Interest income
75

 
74

 
1
 %
 
67

 
12
 %
 
149

 
137
 
9
 %
Other, net
(131
)
 
1,812

 
(107
)%
 
(195
)
 
(33
)%
 
1,682

 
(178)
 
(1,045
)%
Total other income (expense)
(56
)
 
1,882

 
(103
)%
 
(135
)
 
(59
)%
 
1,827

 
(60)
 
(3,145
)%
Loss from continuing operations
  before income taxes
(6,272
)
 
(5,628
)
 
11
 %
 
(7,111
)
 
(12
)%
 
(11,900
)
 
(14,695)
 
(19
)%
Income tax expense
90

 
55

 
64
 %
 
27

 
233
 %
 
145

 
83
 
75
 %
Loss from continuing operations
(6,362
)
 
(5,683
)
 
12
 %
 
(7,138
)
 
(11
)%
 
(12,045
)
 
(14,778)
 
(18
)%
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from discontinued operations,
  net of income taxes
—

 
—

 
NA

 
269

 
NA

 
—

 
269

 
NA

Net loss
$
(6,362
)
 
$
(5,683
)
 
12
 %
 
$
(6,869
)
 
(7
)%
 
$
(12,045
)
 
$
(14,509
)
 
(17
)%
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic and diluted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
(0.06
)
 
$
(0.06
)
 
 
 
$
(0.07
)
 
 
 
$
(0.12
)
 
$
(0.15
)
 
 
Discontinued operations
—

 
—

 
 
 
0.00

 
 
 
—

 
0.00

 
 
Total
$
(0.06
)
 
$
(0.06
)
 
 
 
$
(0.07
)
 
 
 
$
(0.12
)
 
$
(0.15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per
  share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
99,841

 
98,636

 
 
 
98,419

 
 
 
99,239

 
98,183

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2015
 
2015
 
2014
 
2015
 
2014
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
571

 
$
513

 
$
498

 
$
1,084

 
$
1,002

General and administrative
1,476

 
1,406

 
1,165

 
2,882

 
2,365

Sales and marketing
608

 
689

 
601

 
1,297

 
1,126

Research and development
625

 
461

 
370

 
1,086

 
720

Total share-based compensation
$
3,280

 
$
3,069

 
$
2,634

 
$
6,349

 
$
5,213

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,376

 
$
4,153

 
$
4,144

 
$
8,528

 
$
8,481

Other depreciation and amortization
434

 
443

 
639

 
877

 
1,368

Amortization of intangible assets
201

 
197

 
338

 
399

 
675

Total depreciation and amortization
$
5,011

 
$
4,793

 
$
5,121

 
$
9,804

 
$
10,524

 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and marketable securities:
$
(6,027
)
 
$
(12,140
)
 
$
(4,921
)
 
$
(18,167
)
 
$
(11,012
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
1,035

 
1,080

 
1,186

 
1,035

 
1,186

 
 
 
 
 
 
 
 
 
 
Number of employees
563

 
533

 
477

 
563

 
477



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,
 
2015
 
2015
 
2014
 
2015
 
2014
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(6,362
)
 
$
(5,683
)
 
$
(6,869
)
 
$
(12,045
)
 
$
(14,509
)
Income from discontinued operations
—

 
—

 
269

 
—

 
269

Net loss from continuing operations
(6,362
)
 
(5,683
)
 
(7,138
)
 
(12,045
)
 
(14,778
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
  of continuing operations:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,011

 
4,793

 
5,121

 
9,804

 
10,524

Share-based compensation
3,280

 
3,069

 
2,634

 
6,349

 
5,213

Foreign currency remeasurement loss (gain)
96

 
(1,691
)
 
152

 
(1,595
)
 
140

Deferred income taxes
(62
)
 
(53
)
 
(179
)
 
(115
)
 
(202
)
Accounts receivable charges
224

 
246

 
352

 
470

 
512

Amortization of premium on marketable securities
48

 
58

 
113

 
106

 
286

Non cash tax benefit associated with income from discontinued operations
—

 
—

 
(59
)
 
—

 
(59
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(4,312
)
 
(4,980
)
 
(1,169
)
 
(9,292
)
 
(3,148
)
Prepaid expenses and other current assets
(1,352
)
 
1,150

 
1,645

 
(202
)
 
572

Income taxes receivable
13

 
(2
)
 
129

 
11

 
108

Other assets
217

 
792

 
311

 
1,009

 
928

Accounts payable
2,992

 
382

 
(512
)
 
3,374

 
3,296

Deferred revenue
520

 
(203
)
 
24

 
317

 
(807
)
Other current liabilities
397

 
(2,105
)
 
153

 
(1,708
)
 
(2,819
)
Income taxes payable
52

 
(52
)
 
(13
)
 
—

 
(119
)
Other long term liabilities
(175
)
 
(269
)
 
(62
)
 
(444
)
 
(235
)
Net cash provided by (used in) operating activities of continuing operations
587

 
(4,548
)
 
1,502

 
(3,961
)
 
(588
)
Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
(1,965
)
 
(9,956
)
 
(9,486
)
 
(11,921
)
 
(14,683
)
Maturities of marketable securities
1,920

 
9,840

 
8,485

 
11,760

 
12,865

Purchases of property and equipment
(5,395
)
 
(6,666
)
 
(5,844
)
 
(12,061
)
 
(8,909
)
Proceeds from sale of discontinued operations
—

 
—

 
414

 
—

 
414

Net cash used in investing activities of continuing operations
(5,440
)
 
(6,782
)
 
(6,431
)
 
(12,222
)
 
(10,313
)
Financing activities
 
 
 
 
 
 
 
 
 
Payments on capital lease obligations
—

 
(358
)
 
(163
)
 
(358
)
 
(323
)
Payment of employee tax withholdings related to restricted stock vesting
(837
)
 
(1,107
)
 
(307
)
 
(1,944
)
 
(1,171
)
Cash paid for purchase of common stock
—

 
(957
)
 
(1,204
)
 
(957
)
 
(1,204
)
Proceeds from exercise of stock options and employee stock plan
544

 
1,975

 
617

 
2,519

 
734

Net cash used in financing activities of continuing operations
(293
)
 
(447
)
 
(1,057
)
 
(740
)
 
(1,964
)
Effect of exchange rate changes on cash and cash equivalents
140

 
(482
)
 
176

 
(342
)
 
313

Net decrease in cash and cash equivalents
(5,006
)
 
(12,259
)
 
(5,810
)
 
(17,265
)
 
(12,552
)
Cash and cash equivalents, beginning of period
45,508

 
57,767

 
79,214

 
57,767

 
85,956

Cash and cash equivalents, end of period
$
40,502

 
$
45,508

 
$
73,404

 
$
40,502

 
$
73,404

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 from continuing operations 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) without the effects of share-based compensation, litigation defense expenses, amortization of intangible assets, discontinued operations and the gain (loss) on sale of our web content management (WCM) business. We define EBITDA from continuing operations as U.S. GAAP net income (loss) before interest and other (income) expense, interest expense, income tax expense, depreciation and amortization, discontinued operations and gain (loss) on sale of WCM. We believe that EBITDA from continuing operations provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA from continuing operations adjusted for share-based compensation

Exhibit 99.1

and litigation defense expenses. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors’ use of operating performance comparisons from period to period, as well as across companies.
The terms Non-GAAP net income (loss), EBITDA from continuing operations and Adjusted EBITDA are not defined under United States generally accepted accounting principles, or United States GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with United States GAAP. Our Non-GAAP net income (loss), EBITDA from continuing operations and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income (loss), EBITDA from continuing operations 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 United States GAAP. Some of these limitations include, but are not limited to:
• EBITDA from continuing operations and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
• they do not reflect changes in, or cash requirements for, our working capital needs;
• they do not reflect the cash requirements necessary for litigation costs;
• they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;
• they 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 from continuing operations 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 EBITDA from continuing operations and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP net income (loss) and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income (loss), EBITDA from continuing operations and Adjusted EBITDA are calculated as follows for the periods presented in thousands:
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, Limelight is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures. Per share amounts may not foot due to rounding.




Exhibit 99.1

Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Loss
(In thousands)
(Unaudited)
 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
March 31, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(6,362
)
 
$
(0.06
)
 
$
(5,683
)
 
(0.06
)
 
$
(6,869
)
 
$
(0.07
)
 
$
(12,045
)
 
$
(0.12
)
 
$
(14,509
)
 
$
(0.15
)
Share-based compensation
3,280

 
0.03

 
3,069

 
0.03

 
2,634

 
0.03

 
6,349

 
0.06

 
5,213

 
0.05

Litigation defense expenses
(1,174
)
 
(0.01
)
 
19

 
—

 
536

 
0.01

 
(1,155
)
 
(0.01
)
 
809

 
0.01

Amortization of intangible
  assets
201

 
—

 
197

 
—

 
338

 
—

 
399

 
—

 
675

 
0.01

Loss on sale of the WCM
  business
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
62

 
—

Income from discontinued
  operations
—

 
—

 
—

 
—

 
(269
)
 
—

 
—

 
—

 
(269
)
 
—

Non-GAAP net loss
$
(4,055
)
 
$
(0.04
)
 
$
(2,398
)
 
$
(0.02
)
 
$
(3,630
)
 
$
(0.04
)
 
$
(6,452
)
 
$
(0.07
)
 
$
(8,019
)
 
$
(0.08
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares
  used in per share calculation:
 
 
99,841

 
 
 
98,636

 
 
 
98,419

 
 
 
99,239

 
 
 
98,183



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,
 
2015
 
2015
 
2014
 
2015
 
2014
U.S. GAAP net loss
$
(6,362
)
 
$
(5,683
)
 
$
(6,869
)
 
$
(12,045
)
 
$
(14,509
)
Depreciation and amortization
5,011

 
4,793

 
5,121

 
9,804

 
10,524

Interest expense
—

 
4

 
7

 
4

 
19

Loss on sale of the WCM business
—

 
—

 
—

 
—

 
62

Interest and other expense (income)
56

 
(1,886
)
 
128

 
(1,831
)
 
(21
)
Income tax expense
90

 
55

 
27

 
145

 
83

Income from discontinued operations
—

 
—

 
(269
)
 
—

 
(269
)
EBITDA from continuing operations
$
(1,205
)
 
$
(2,717
)
 
$
(1,855
)
 
$
(3,923
)
 
$
(4,111
)
Share-based compensation
3,280

 
3,069

 
2,634

 
6,349

 
5,213

Litigation defense expenses
(1,174
)
 
19

 
536

 
(1,155
)
 
809

Adjusted EBITDA
$
901

 
$
371

 
$
1,315

 
$
1,271

 
$
1,911

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 877-388-8480 within the United States or +1 678-809-1592 outside of the U.S. The conference call will also be audiocast 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 strategic focus; our expectations regarding revenues for the third quarter and full year 2015; non-GAAP net loss and capital expenditures for the full-year 2015; the growth of our business; the performance of our services; and our relationship with our

Exhibit 99.1

customers. Our expectations and beliefs regarding these matters may not materialize. The potential risk and uncertainties that could cause actual results to differ materially from the results predicted include, among other things, reduction of demand for our services from new or existing customers, unforeseen changes in our hiring patterns, 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 August 3, 2015, 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) 2015 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

Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ


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