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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):
February 7, 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))
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
 
 
 
 
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 February 7, 2018, the Company issued a press release regarding its financial results for the fourth quarter ended December 31, 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: February 7, 2018
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary








EXHIBIT INDEX
 
 
 
 
Exhibit
Number
 
Description
99.1
 



Exhibit
Exhibit 99.1

February 7, 2018
Limelight Networks Reports Record Fourth Quarter and Full Year Financials
•
Q4 Revenue of $48.2 million, up 10 percent, year over year
•
Q4 Gross Margin of 47.7%, up 280 basis points, year over year
•
Q4 GAAP EPS of $(0.01) and Non-GAAP EPS of $0.04
•
Full Year Revenue, Gross Margin and Adjusted EBITDA highest ever as public company
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $48.2 million for the fourth quarter of 2017, up 10 percent, compared to $43.8 million in the fourth quarter of 2016, and up 5 percent, compared to $46.1 million in the third quarter of 2017. Currency favorably impacted year-over-year comparison by $0.3 million and sequential comparison by $0.1 million.
Gross margin was 47.7% in the fourth quarter of 2017, an increase of 280 basis points from 44.9% in the fourth quarter of 2016.
Limelight reported a net loss of $0.9 million, or $0.01 per basic share for the fourth quarter of 2017, compared to a net loss of $3.9 million, or $0.04 per basic share in the fourth quarter of 2016.
Non-GAAP net income was $3.9 million or $0.04 per basic share for the fourth quarter of 2017, compared to a non-GAAP net loss of $1.8 million, or $0.02 per basic share in the fourth quarter of 2016.
EBITDA was $3.9 million for the fourth quarter of 2017, compared to $1.9 million for the fourth quarter of 2016. Adjusted EBITDA was $8.7 million for the fourth quarter of 2017 compared to $7.5 million for the fourth quarter of 2016.
For the full year ended December 31, 2017, Limelight reported revenue of $184.4 million, an increase of 10% compared to $168.2 million for the year ended December 31, 2016. Currency negatively impacted full year revenue by $0.4 million.
Gross margin was 47.6% for the year ended December 31, 2017, an increase of 520 basis points compared to 42.4% for the year ended December 31, 2016.
Limelight reported a net loss of $7.6 million, or $0.07 per basic share, for the year ended December 31, 2017, compared to a net loss of $73.9 million, or $0.71 per basic share, in 2016. The full year 2016 net loss includes a $54.0 million provision for litigation related to the settlement and license agreement with Akamai.
Non-GAAP net income was $10.6 million, or $0.10 per basic share, for the year ended December 31, 2017, compared to a non-GAAP net income of $0.8 million, or $0.01 per basic share, in 2016.
EBITDA was $12.4 million for the year ended December 31, 2017, compared to negative $51.9 million for the year ended December 31, 2016. Adjusted EBITDA was $30.7 million for the year ended December 31, 2017, compared to $22.8 million for the year ended December 31, 2016.
Limelight ended the fourth quarter with 533 employees and employee equivalents, down from 535 at the end of the third quarter of 2017, and up from 510 at the end of 2016.
Commenting on the fourth quarter and full year results, Chief Executive Officer, Robert Lento said, “Limelight’s results in the latest quarter capped a year of consistent and robust operational and financial improvements. We’re gratified that Limelight’s investors have been rewarded with a second consecutive year of shareholder returns in excess of 70 percent, and our customer satisfaction (measured by Net Promoter Score) and employee satisfaction have both achieved record highs.”
“Limelight’s strong business momentum and robust network performance lay a solid foundation for our business, and we believe this increasingly differentiates Limelight’s value proposition from that of our


Exhibit 99.1

competitors. As we enter 2018, we expect that our talented, creative, and motivated employees, our dynamic technology platform, and our laser focus on harvesting edge services opportunities will further elevate Limelight’s future revenue and profit growth. For these reasons, we have provided 2018 guidance that builds on the strong 2017 performance.”
Based on current conditions, Limelight is confirming the following guidance for 2018:
–
Revenue between $196 million and $200 million,
–
GAAP gross margin expansion greater than 100 basis points over 2017,
–
Non-GAAP earnings per share between $0.11 and $0.15 per share,
–
Adjusted EBITDA between $32 million and $36 million, and
–
Capital expenditures between $22 million and $24 million dollars. 
    
 



Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
December 31,
2017
 
September 30,
2017
 
December 31,
2016
 
 
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
20,912

 
20,744

 
$
21,734

Marketable securities
28,404

 
36,948

 
44,453

Accounts receivable, net
32,381

 
28,712

 
27,418

Income taxes receivable
98

 
102

 
125

Prepaid expenses and other current assets
5,397

 
4,453

 
4,865

Total current assets
87,192

 
90,959

 
98,595

Property and equipment, net
28,991

 
29,835

 
30,352

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes
1,506

 
1,393

 
1,105

Goodwill
77,054

 
76,925

 
76,243

Other assets
1,665

 
1,794

 
1,794

Total assets
$
196,448

 
200,946

 
$
208,129

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
4,439

 
8,804

 
$
8,790

Deferred revenue
1,187

 
1,694

 
2,138

Income taxes payable
452

 
383

 
188

Provision for litigation
18,000

 
18,000

 
18,000

Other current liabilities
18,507

 
15,665

 
12,836

Total current liabilities
42,585

 
44,546

 
41,952

Deferred income taxes
144

 
146

 
152

Deferred revenue, less current portion
16

 
15

 
22

Provision for litigation, less current portion
9,000

 
13,500

 
27,000

Other long-term liabilities
558

 
859

 
1,435

Total liabilities
52,303

 
59,066

 
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; 110,824, 109,638 and 107,059 shares issued and outstanding at December 31, 2017, September 30, 2017 and December 31, 2016, respectively
111

 
110

 
107

Additional paid-in capital
502,312

 
499,487

 
490,819

Accumulated other comprehensive loss
(8,328
)
 
(8,679
)
 
(11,038
)
Accumulated deficit
(349,950
)
 
(349,038
)
 
(342,320
)
Total stockholders’ equity
144,145

 
141,880

 
137,568

Total liabilities and stockholders’ equity
$
196,448

 
200,946

 
$
208,129


 


Exhibit 99.1

Limelight Networks, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended
 
Twelve Months Ended
 
Dec. 31,
 
Sept. 30,
 
Percent
 
Dec. 31,
 
Percent
 
Dec. 31,
 
Dec. 31,
 
Percent
 
2017
 
2017
 
Change
 
2016
 
Change
 
2017
 
2016
 
Change
Revenues
$
48,186

 
$
46,069

 
5
 %
 
$
43,778

 
10
 %
 
$
184,360

 
$
168,234

 
10
 %
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
20,665

 
19,287

 
7
 %
 
19,642

 
5
 %
 
78,423

 
78,857
 
(1
)%
Depreciation — network
4,544

 
4,506

 
1
 %
 
4,474

 
2
 %
 
18,138

 
18,032
 
1
 %
Total cost of revenue
25,209

 
23,793

 
6
 %
 
24,116

 
5
 %
 
96,561

 
96,889
 
—
 %
Gross profit
22,977

 
22,276

 
3
 %
 
19,662

 
17
 %
 
87,799

 
71,345
 
23
 %
Gross profit percentage
47.7
%
 
48.4
%
 
 
 
44.9
%
 
 
 
47.6
%
 
42.4
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
8,656

 
8,079

 
7
 %
 
7,960

 
9
 %
 
32,053

 
30,042
 
7
 %
Sales and marketing (1)
8,997

 
8,836

 
2
 %
 
8,215

 
10
 %
 
36,098

 
32,945
 
10
 %
Research and development (1)
5,965

 
6,443

 
(7
)%
 
6,094

 
(2
)%
 
25,342

 
24,335
 
4
 %
Depreciation and amortization
587

 
603

 
(3
)%
 
590

 
(1
)%
 
2,376

 
2,452
 
(3
)%
Provision for litigation
—

 
—

 
NA

 
—

 
NA

 
—

 
54,000
 
NM

Total operating expenses
24,205

 
23,961

 
1
 %
 
22,859

 
6
 %
 
95,869

 
143,774
 
(33
)%
Operating loss
(1,228
)
 
(1,685
)
 
(27
)%
 
(3,197
)
 
(62
)%
 
(8,070
)
 
(72,429)
 
(89
)%
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(38
)
 
(18
)
 
111
 %
 
(54
)
 
(30
)%
 
(80
)
 
(918)
 
NM

Interest income
128

 
127

 
NM

 
101

 
27
 %
 
494

 
123
 
302
 %
Other, net
204

 
8

 
2,450
 %
 
(570
)
 
(136
)%
 
452

 
(98)
 
(561
)%
Total other income (expense)
294

 
117

 
151
 %
 
(523
)
 
(156
)%
 
866

 
(893)
 
(197
)%
Loss before income taxes
(934
)
 
(1,568
)
 
(40
)%
 
(3,720
)
 
(75
)%
 
(7,204
)
 
(73,322)
 
(90
)%
Income tax expense
(22
)
 
188

 
(112
)%
 
199

 
(111
)%
 
426

 
603
 
(29
)%
Net loss
$
(912
)
 
$
(1,756
)
 
(48
)%
 
$
(3,919
)
 
(77
)%
 
$
(7,630
)
 
$
(73,925
)
 
(90
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
$
(0.01
)
 
$
(0.02
)
 
 
 
$
(0.04
)
 
 
 
$
(0.07
)
 
$
(0.71
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per
  share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
110,128

 
109,342

 
 
 
105,942

 
 
 
108,814

 
104,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
Twelve Months Ended
 
Dec. 31,
 
Sept. 30,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
2017
 
2017
 
2016
 
2017
 
2016
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
375

 
$
352

 
$
375

 
$
1,450

 
$
1,493

General and administrative
1,729

 
1,565

 
1,951

 
6,502

 
7,070

Sales and marketing
622

 
611

 
776

 
2,470

 
2,792

Research and development
576

 
584

 
581

 
2,322

 
2,104

Total share-based compensation
$
3,302

 
$
3,112

 
$
3,683

 
$
12,744

 
$
13,459

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,544

 
$
4,506

 
$
4,474

 
$
18,138

 
$
18,032

Other depreciation and amortization
587

 
603

 
590

 
2,376

 
2,438

Amortization of intangible assets
—

 
—

 
—

 
—

 
14

Total depreciation and amortization
$
5,131

 
$
5,109

 
$
5,064

 
$
20,514

 
$
20,484

 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and marketable securities:
$
(8,376
)
 
$
(2,904
)
 
$
(8,213
)
 
$
(16,871
)
 
$
(6,815
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
717

 
753

 
851

 
717

 
851

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
533

 
535

 
510

 
533

 
510




Exhibit 99.1

Limelight Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Three Months Ended
 
Twelve Months Ended
 
Dec. 31,
 
Sept. 30,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
2017
 
2017
 
2016
 
2017
 
2016
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(912
)
 
$
(1,756
)
 
$
(3,919
)
 
$
(7,630
)
 
$
(73,925
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,131

 
5,109

 
5,064

 
20,514

 
20,484

Share-based compensation
3,302

 
3,112

 
3,683

 
12,744

 
13,459

Accrual of provision for litigation
—

 
—

 
—

 
—

 
54,000

Foreign currency remeasurement loss
140

 
79

 
76

 
798

 
585

Deferred income taxes
(108
)
 
(73
)
 
195

 
(325
)
 
170

Gain on sale of property and equipment
(316
)
 
(2
)
 
(218
)
 
(410
)
 
(514
)
Accounts receivable charges
217

 
242

 
101

 
949

 
137

Amortization of premium on marketable securities
55

 
65

 
48

 
283

 
67

Realized loss on sale of marketable securities
—

 
—

 
—

 
—

 
32

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(3,886
)
 
(800
)
 
(4,661
)
 
(5,912
)
 
(760
)
Prepaid expenses and other current assets
(887
)
 
(322
)
 
315

 
(342
)
 
4,648

Income taxes receivable
4

 
13

 
(15
)
 
38

 
39

Other assets
249

 
13

 
22

 
270

 
580

Accounts payable and other current liabilities
(730
)
 
2,048

 
(1,087
)
 
4,019

 
(1,757
)
Deferred revenue
(507
)
 
(47
)
 
730

 
(957
)
 
(822
)
Income taxes payable
69

 
46

 
68

 
249

 
(8
)
Payments for provision for litigation
(4,500
)
 
(4,500
)
 
(4,500
)
 
(18,000
)
 
(9,000
)
Other long term liabilities
(206
)
 
(202
)
 
(307
)
 
(790
)
 
(857
)
Net cash (used in) provided by operating activities
(2,885
)
 
3,025

 
(4,405
)
 
5,498

 
6,558

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
(4,547
)
 
(2,864
)
 
(45,629
)
 
(14,930
)
 
(45,629
)
Sale and maturities of marketable securities
13,012

 
3,500

 
1,000

 
30,756

 
29,315

Purchases of property and equipment
(4,919
)
 
(5,328
)
 
(4,897
)
 
(20,725
)
 
(9,563
)
Proceeds from sale of property and equipment
14

 
3

 
504

 
97

 
504

Net cash provided by (used in) investing activities
3,560

 
(4,689
)
 
(49,022
)
 
(4,802
)
 
(25,373
)
Financing activities
 
 
 
 
 
 
 
 
 
Principal payments on capital lease obligations
—

 
—

 
—

 
—

 
(4,685
)
Payment of employee tax withholdings related to restricted stock vesting
(1,925
)
 
(655
)
 
(676
)
 
(4,496
)
 
(1,982
)
Proceeds from employee stock plans
1,448

 
12

 
1,839

 
2,648

 
2,743

Net cash (used in) provided by financing activities
(477
)
 
(643
)
 
1,163

 
(1,848
)
 
(3,924
)
Effect of exchange rate changes on cash and cash equivalents
(30
)
 
79

 
(402
)
 
330

 
(207
)
Net increase (decrease) in cash and cash equivalents
168

 
(2,228
)
 
(52,666
)
 
(822
)
 
(22,946
)
Cash and cash equivalents, beginning of period
20,744

 
22,972

 
74,400

 
21,734

 
44,680

Cash and cash equivalents, end of period
$
20,912

 
$
20,744

 
$
21,734

 
$
20,912

 
$
21,734

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 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 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


Exhibit 99.1

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:
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.





Exhibit 99.1


Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income
(In thousands)
(Unaudited)
 
Three Months Ended
 
Twelve Months Ended
 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2015
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(912
)
 
$
(0.01
)
 
$
(1,756
)
 
$
(0.02
)
 
$
(3,919
)
 
$
(0.04
)
 
$
(7,630
)
 
$
(0.07
)
 
$
(73,925
)
 
$
(0.71
)
Provision for litigation
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
54,000

 
0.52

Share-based compensation
3,302

 
0.03

 
3,112

 
0.03

 
3,683

 
0.03

 
12,744

 
0.12

 
13,459

 
0.13

Litigation expenses
1,470

 
0.01

 
863

 
0.01

 
1,998

 
0.02

 
5,518

 
0.05

 
7,284

 
0.07

Amortization of intangible assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
14

 
—

Non-GAAP net income
$
3,860

 
$
0.04

 
$
2,219

 
$
0.02

 
$
1,762

 
$
0.02

 
$
10,632

 
$
0.10

 
$
832

 
$
0.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares
used in per share calculation:
 
 
110,128

 
 
 
109,342

 
 
 
105,942

 
 
 
108,814

 
 
 
104,350



Limelight Networks, Inc.
Reconciliation of U.S. GAAP Net Loss to EBITDA to Adjusted EBITDA
(In thousands)
(Unaudited)
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
September 30,
 
December 31,
 
December 31,
 
December 31,
 
2017
 
2017
 
2016
 
2017
 
2016
U.S. GAAP net loss
$
(912
)
 
$
(1,756
)
 
$
(3,919
)
 
$
(7,630
)
 
$
(73,925
)
Depreciation and amortization
5,131

 
5,109

 
5,064

 
20,514

 
20,484

Interest expense
38

 
18

 
54

 
80

 
918

Interest and other (income) expense
(332
)
 
(135
)
 
469

 
(946
)
 
(25
)
Income tax expense
(22
)
 
188

 
199

 
426

 
603

EBITDA
$
3,903

 
$
3,424

 
$
1,867

 
$
12,444

 
$
(51,945
)
Provision for litigation
—

 
—

 
—

 
—

 
54,000

Share-based compensation
3,302

 
3,112

 
3,683

 
12,744

 
13,459

Litigation expenses
1,470

 
863

 
1,998

 
5,518

 
7,284

Adjusted EBITDA
$
8,675

 
$
7,399

 
$
7,548

 
$
30,706

 
$
22,798

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.
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.


Exhibit 99.1

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 February 7, 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 (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 Limelight Orchestrate platform includes a global infrastructure with a fully-integrated suite of capabilities and services that 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 read 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