View:
Download DOC
Download PDF
Download XLS
Document


 
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 19, 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 July 19, 2018, Limelight Networks, Inc. issued a press release regarding its financial results for the second quarter ended June 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: July 19, 2018
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary








EXHIBIT INDEX
 
 
 
 
Exhibit
Number
 
Description
99.1
 



Exhibit
Exhibit 99.1

July 19, 2018
Limelight Networks Reports Strong Financial Results for the Second Quarter of 2018
•
Revenue of $50.2 million, up 11 percent year over year
•
GAAP gross margin of 49.4%, up 230 basis points, year over year
•
GAAP EPS of $0.14 and Non-GAAP EPS of $0.04
•
Cash and marketable securities of $45.6 million
•
Raises revenue guidance for full year 2018, with lower capital expenditures
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $50.2 million for the second quarter of 2018, up 11% compared to $45.4 million in the second quarter of 2017. Currency did not materially impact reported revenue in the quarter.
Gross margin was 49.4% in the second quarter of 2018, an increase of 230 basis points from 47.1% in the second quarter of 2017.
On a GAAP basis, Limelight reported net income of $15.2 million, or $0.14 per basic share and $0.13 per fully diluted share, for the second quarter of 2018, compared to a net loss of $1.6 million, or $0.01 per basic share, in the second quarter of 2017. 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 the settlement and patent license agreement.
Non-GAAP net income was $4.0 million, or $0.04 per basic share, for the second quarter of 2018, compared to $2.9 million, or $0.03 per basic share, in the second quarter of 2017.
EBITDA was $20.3 million for the second quarter of 2018, compared to $3.4 million for the second quarter of 2017. Adjusted EBITDA was $9.2 million for the second quarter of 2018, compared to $7.9 million for the second quarter of 2017.
Limelight ended the second quarter with 549 employees and employee equivalents, up from 544 at the end of the first quarter of 2018, and up from 533 in the year ago period.
“Limelight’s customers rewarded us once again in the second quarter of 2018, for our commitment to providing them with the best tools, value, reliability, and customer care. Limelight’s revenues grew more than 11% over the prior year quarter, driven by video delivery services. Limelight generated strong operating cash flow for the quarter, and further strengthened its balance sheet. After raising full-year guidance in April, we remain on track to achieve those results, on even lower capital expenditures. We’re pleased with Limelight’s results through the half-year mark, and owe great thanks to each of our committed employees for putting us on track to make 2018 our best year yet,” said Bob Lento, Chief Executive Officer, Limelight Networks.
“Financial discipline, along with continued investments in people, technology, and services, and our deep understanding of the intricacies of delivering content closer to the consumer, uniquely position Limelight to capitalize on emerging opportunities in low-latency, secure, Edge computing, analytics and communications. We continue to find opportunities to tune our infrastructure for sustained, cost efficient growth, to fully exploit Limelight’s unique Edge-centric platform, and to generate higher shareholder returns,” Lento added.
Based on current conditions, we are raising our previously issued guidance on April 19, 2018 for revenue from $198 to $202 million to $200 to $203 million. Gross margin percentage


Exhibit 99.1

improvement, GAAP earnings per share, non-GAAP earnings per share, and adjusted EBITDA remain unchanged. We now expect capital expenditures to be below $20 million for the full year, down from our previous expectation of between $20 and $22 million.
Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
28,719

 
$
19,863

 
$
20,912

Marketable securities
16,851

 
23,832

 
28,404

Accounts receivable, net
31,862

 
32,433

 
32,381

Income taxes receivable
153

 
224

 
98

Prepaid expenses and other current assets
18,147

 
5,717

 
5,397

Total current assets
95,732

 
82,069

 
87,192

Property and equipment, net
26,303

 
27,371

 
28,991

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes
1,550

 
1,546

 
1,506

Goodwill
76,648

 
77,027

 
77,054

Other assets
2,235

 
2,174

 
1,665

Total assets
$
202,508

 
$
190,227

 
$
196,448

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
6,179

 
$
10,376

 
$
4,439

Deferred revenue
965

 
950

 
1,187

Income taxes payable
219

 
72

 
452

Provision for litigation
18,000

 
18,000

 
18,000

Other current liabilities
12,269

 
11,495

 
18,507

Total current liabilities
37,632

 
40,893

 
42,585

Deferred income taxes
124

 
159

 
144

Deferred revenue, less current portion
37

 
16

 
16

Provision for litigation, less current portion
—

 
4,500

 
9,000

Other long-term liabilities
389

 
411

 
558

Total liabilities
38,182

 
45,979

 
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; 112,478, 110,657, and 110,824 shares issued and outstanding at June 30, 2018, March 31, 2018 and December 31, 2017, respectively
112

 
111

 
111

Additional paid-in capital
506,684

 
500,305

 
502,312

Accumulated other comprehensive loss
(9,324
)
 
(7,861
)
 
(8,328
)
Accumulated deficit
(333,146
)
 
(348,307
)
 
(349,950
)
Total stockholders’ equity
164,326

 
144,248

 
144,145

Total liabilities and stockholders’ equity
$
202,508

 
$
190,227

 
$
196,448

 
 
 
 
 
 

 


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
 
2018
 
2018
 
Change
 
2017
 
Change
 
2018
 
2017
 
Change
Revenue
$
50,249

 
$
52,114

 
(4
)%
 
$
45,370

 
11
 %
 
$
102,363

 
$
90,105

 
14
 %
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
21,206

 
21,054

 
1
 %
 
19,464

 
9
 %
 
42,260

 
38,471

 
10
 %
Depreciation — network
4,196

 
4,380

 
(4
)%
 
4,531

 
(7
)%
 
8,576

 
9,088

 
(6
)%
Total cost of revenue
25,402

 
25,434

 
—
 %
 
23,995

 
6
 %
 
50,836

 
47,559

 
7
 %
Gross profit
24,847

 
26,680

 
(7
)%
 
21,375

 
16
 %
 
51,527

 
42,546

 
21
 %
Gross profit percentage
49.4
%
 
51.2
%
 
 
 
47.1
%
 
 
 
50.3
%
 
47.2
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
7,517

 
9,522

 
(21
)%
 
6,804

 
10
 %
 
17,038

 
15,319

 
11
 %
Sales and marketing (1)
10,022

 
10,280

 
(3
)%
 
8,997

 
11
 %
 
20,302

 
18,265

 
11
 %
Research and development (1)
6,073

 
6,339

 
(4
)%
 
6,715

 
(10
)%
 
12,412

 
12,934

 
(4
)%
Depreciation and amortization
633

 
588

 
8
 %
 
597

 
6
 %
 
1,221

 
1,186

 
3
 %
Total operating expenses
24,245

 
26,729

 
(9
)%
 
23,113

 
5
 %
 
50,973

 
47,704

 
7
 %
Operating income (loss)
602

 
(49
)
 
NM

 
(1,738
)
 
NM

 
554

 
(5,158
)
 
NM

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(7
)
 
(59
)
 
NM

 
(10
)
 
NM

 
(66
)
 
(24
)
 
NM

Interest income
134

 
130

 
3
 %
 
121

 
11
 %
 
263

 
239

 
10
 %
Settlement and patent license income
14,900

 
—

 
NM

 
—

 
NM

 
14,900

 
—

 
NM

Other, net
(221
)
 
112

 
NM

 
153

 
NM

 
(109
)
 
241

 
NM

Total other income
14,806

 
183

 
NM

 
264

 
NM

 
14,988

 
456

 
NM

Income (loss) before income taxes
15,408

 
134

 
NM

 
(1,474
)
 
NM

 
15,542

 
(4,702
)
 
NM

Income tax expense (benefit)
249

 
(15
)
 
NM

 
151

 
NM

 
234

 
260

 
NM

Net income (loss)
$
15,159

 
$
149

 
NM

 
$
(1,625
)
 
NM

 
15,308

 
(4,962
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.14

 
$
—

 
 
 
$
(0.01
)
 
 
 
0.14

 
(0.05
)
 
 
Diluted
$
0.13

 
$
—

 
 
 
$
(0.01
)
 
 
 
0.13

 
(0.05
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
111,356

 
110,761

 
 
 
108,422

 
 
 
111,059

 
107,893

 
 
Diluted
120,033

 
118,909

 
 
 
108,422

 
 
 
119,454

 
107,893

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2018
 
2018
 
2017
 
2018
 
2017
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
350

 
$
357

 
$
364

 
$
707

 
$
723

General and administrative
1,969

 
1,810

 
1,674

 
3,779

 
3,208

Sales and marketing
633

 
603

 
617

 
1,236

 
1,237

Research and development
605

 
597

 
600

 
1,202

 
1,162

Total share-based compensation
$
3,557

 
$
3,367

 
$
3,255

 
$
6,924

 
$
6,330

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,196

 
$
4,380

 
$
4,531

 
$
8,576

 
$
9,088

Other depreciation and amortization
633

 
588

 
597

 
1,221

 
1,186

Total depreciation and amortization
$
4,829

 
$
4,968

 
$
5,128

 
$
9,797

 
$
10,274

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

 
$
(5,621
)
 
$
(232
)
 
$
(3,746
)
 
$
(5,591
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
689

 
703

 
779

 
689

 
779

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
549

 
544

 
533

 
549

 
533




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,
 
2018
 
2018
 
2017
 
2018
 
2017
Operating activities
 
 
 
 
 
 
 
 
 
Net income (loss)
$
15,159

 
$
149

 
$
(1,625
)
 
$
15,308

 
$
(4,962
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4,829

 
4,968

 
5,128

 
9,797

 
10,274

Share-based compensation
3,557

 
3,367

 
3,255

 
6,924

 
6,330

Settlement and patent license income
(14,900
)
 
—

 
—

 
(14,900
)
 
—

Foreign currency remeasurement (gain) loss
(271
)
 
110

 
290

 
(161
)
 
579

Deferred income taxes
(111
)
 
41

 
(94
)
 
(70
)
 
(144
)
Gain on sale of property and equipment
(97
)
 
(16
)
 
(17
)
 
(113
)
 
(92
)
Accounts receivable charges
78

 
218

 
241

 
296

 
490

Amortization of premium on marketable securities
25

 
33

 
80

 
58

 
163

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
493

 
(270
)
 
(2,204
)
 
223

 
(1,226
)
Prepaid expenses and other current assets
(655
)
 
882

 
(47
)
 
227

 
867

Income taxes receivable
61

 
(124
)
 
(8
)
 
(63
)
 
21

Other assets
(72
)
 
(495
)
 
11

 
(567
)
 
8

Accounts payable and other current liabilities
(3,298
)
 
(2,286
)
 
3,861

 
(5,584
)
 
2,701

Deferred revenue
37

 
130

 
(101
)
 
167

 
(403
)
Income taxes payable
160

 
(397
)
 
138

 
(237
)
 
134

Payments for provision for litigation
(1,520
)
 
(4,500
)
 
(4,500
)
 
(6,020
)
 
(9,000
)
Other long term liabilities
(19
)
 
(151
)
 
(185
)
 
(170
)
 
(382
)
Net cash provided by operating activities
3,456

 
1,659

 
4,223

 
5,115

 
5,358

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
—

 
—

 
(2,993
)
 
—

 
(7,519
)
Sale and maturities of marketable securities
7,000

 
4,515

 
6,994

 
11,515

 
14,244

Purchases of property and equipment
(4,291
)
 
(1,990
)
 
(4,733
)
 
(6,281
)
 
(10,478
)
Proceeds from sale of property and equipment
97

 
16

 
22

 
113

 
80

Net cash provided by (used in) investing activities
2,806

 
2,541

 
(710
)
 
5,347

 
(3,673
)
Financing activities
 
 
 
 
 
 
 
 
 
Payment of employee tax withholdings related to restricted stock vesting
(1,206
)
 
(1,606
)
 
(880
)
 
(2,812
)
 
(1,916
)
Cash paid for purchase of common stock
—

 
(3,800
)
 
—

 
(3,800
)
 
—

Proceeds from employee stock plans
4,032

 
30

 
1,077

 
4,062

 
1,188

Net cash provided by (used in) financing activities
2,826

 
(5,376
)
 
197

 
(2,550
)
 
(728
)
Effect of exchange rate changes on cash and cash equivalents
(232
)
 
127

 
110

 
(105
)
 
281

Net increase (decrease) in cash and cash equivalents
8,856

 
(1,049
)
 
3,820

 
7,807

 
1,238

Cash and cash equivalents, beginning of period
19,863

 
20,912

 
19,152

 
20,912

 
21,734

Cash and cash equivalents, end of period
$
28,719

 
$
19,863

 
$
22,972

 
$
28,719

 
$
22,972

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 (benefit). 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
 
Six Months Ended
 
June 30, 2018
 
March 31, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net income (loss)
$
15,159

 
$
0.14

 
$
149

 
$
—

 
$
(1,625
)
 
$
(0.01
)
 
$
15,308

 
$
0.14

 
$
(4,962
)
 
$
(0.05
)
Settlement and patent license income
(14,900
)
 
(0.13
)
 
—

 
—

 
—

 
—

 
(14,900
)
 
(0.13
)
 
—

 
—

Share-based compensation
3,557

 
0.03

 
3,367

 
0.03

 
3,255

 
0.03

 
6,924

 
0.06

 
6,330

 
0.06

Litigation expenses
215

 
—

 
2,670

 
0.02

 
1,276

 
0.01

 
2,885

 
0.03

 
3,185

 
0.03

Non-GAAP net income
$
4,031

 
$
0.04

 
$
6,186

 
$
0.06

 
$
2,906

 
$
0.03

 
$
10,217

 
$
0.09

 
$
4,553

 
$
0.04

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
111,356

 
 
 
110,761

 
 
 
108,422

 
 
 
111,059

 
 
 
107,893



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,
 
2018
 
2018
 
2017
 
2018
 
2017
U.S. GAAP net income (loss)
$
15,159

 
$
149

 
$
(1,625
)
 
$
15,308

 
$
(4,962
)
Depreciation and amortization
4,829

 
4,968

 
5,128

 
9,797

 
10,274

Interest expense
7

 
59

 
10

 
66

 
24

Interest and other (income) expense
87

 
(242
)
 
(274
)
 
(154
)
 
(480
)
Income tax expense (benefit)
249

 
(15
)
 
151

 
234

 
260

EBITDA
$
20,331

 
$
4,919

 
$
3,390

 
$
25,251

 
$
5,116

Settlement and patent license income
(14,900
)
 
—

 
—

 
(14,900
)
 
—

Share-based compensation
3,557

 
3,367

 
3,255

 
6,924

 
6,330

Litigation expenses
215

 
2,670

 
1,276

 
2,885

 
3,185

Adjusted EBITDA
$
9,203

 
$
10,956

 
$
7,921

 
$
20,160

 
$
14,631

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

2018 Guidance Table
Limelight Networks, Inc.
2018 Guidance
 
 
 
 
 
 
 
 
 
July 19, 2018
 
April 19, 2018
 
February 7, 2018
Revenue
 
$200 to $203 million
 
$198 to $202 million
 
$196 to $200 million
 
 
 
 

 

Gross margin percentage
 
No change
 
Expansion of more than 150 basis points over 2017
 
Expansion of more than 100 basis points over 2017
 
 
 
 

 

GAAP EPS
 
No change
 
$0.07 to $0.11
 
$(0.07) to $(0.03)
 
 
 
 
 
 
 
Non-GAAP EPS
 
No change
 
$0.13 to $0.17
 
$0.11 to $0.15
 
 
 
 

 

Adjusted EBITDA
 
No change
 
$33 to $37 million
 
$32 to $36 million
 
 
 
 

 

Capital expenditures
 
Below $20 million
 
$20 to $22 million
 
$22 to $24 million
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, 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 July 19, 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, 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 to help you address all


Exhibit 99.1

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 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