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):
October 16, 2019
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)
1465 North Scottsdale Road Suite 400
Scottsdale, AZ 85257
(Address, including zip code, of principal executive offices)
(602) 850-5000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
 
 
 
 
 
Title of each class
 
Trading Symbol(s)
 
Name of exchange on which registered
Common stock, par value $0.001 per share
 
LLNW
 
NASDAQ
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 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
 
 
 
 
 
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 October 16, 2019, Limelight Networks, Inc. issued a press release regarding its financial results for the third quarter ended September 30, 2019, 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 16, 2019
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary




 




Exhibit
Exhibit 99.1

October 16, 2019
Limelight Networks(R) Reports Financial Results for the Third Quarter of 2019
•
Revenue of $51.3 million, up 4 percent year over year, up 12% sequentially
•
GAAP basic EPS of $(0.02) and Non-GAAP EPS of $0.01
•
Confirming accelerated growth in revenue, profitability and free cash flow for Q4 2019
•
Delivered record traffic, exceeding previous record by approximately 20%
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a leading provider of edge cloud services, today reported revenue of $51.3 million for the third quarter of 2019, up 4% compared to $49.3 million in the third quarter of 2018. Currency negatively impacted year-over-year comparison by $0.2 million.
Limelight reported a net loss of $2.8 million, or $(0.02) per basic share for the third quarter of 2019, compared to a net loss of $0.3 million, or break-even per basic share, in the third quarter of 2018.
Non-GAAP net income was $0.6 million, or $0.01 per basic share, for the third quarter of 2019, compared to non-GAAP net income of $3.2 million, or $0.03 per basic share, in the third quarter of 2018.
EBITDA was $2.5 million for the third quarter of 2019, compared to $4.3 million for the third quarter of 2018. Adjusted EBITDA was $5.8 million for the third quarter of 2019, compared to $7.7 million for the third quarter of 2018.
Limelight ended the third quarter with 609 employees and employee equivalents, up from 594 at the end of the second quarter of 2019, and up from 551 in the year ago period.
“We are extremely pleased with our third quarter results. Our revenue was the highest third quarter revenue ever and our second highest revenue in any quarter. We also set a new record for traffic in the quarter, continuing the rapid growth that we have demonstrated throughout the year. We achieved these results by accelerating investments in infrastructure and significantly growing capacity, while still maintaining fiscal discipline by controlling expenses,” said Bob Lento, Chief Executive Officer at Limelight.
“We believe the fourth quarter will see year-over-year acceleration in revenue growth and meaningful improvements in gross margin and overall profitability. Even at the low end of our guidance, fourth quarter growth rates exceed 35% year-over-year and in excess of 15% sequentially. These healthy trends validate our strategy to focus on video-based edge services. We believe this positions us for a strong 2020 and beyond and will lead to the creation of tremendous shareholder value,” Mr. Lento added. 
Based on current conditions, we expect 2019 revenue to be between $200 and $210 million dollars. GAAP net loss is expected to be approximately $0.10 per share and Non-GAAP earnings per share should be near breakeven. Capital expenditures should be approximately $30 million dollars.










Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
September 30,
2019
 
June 30,
2019
 
December 31,
2018
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
14,832

 
$
24,698

 
$
25,383

Marketable securities
3,218

 
4,224

 
25,083

Accounts receivable, net
35,818

 
31,098

 
26,041

Income taxes receivable
77

 
125

 
122

Prepaid expenses and other current assets
9,522

 
8,739

 
14,789

Total current assets
63,467

 
68,884

 
91,418

Property and equipment, net
46,304

 
35,531

 
27,378

Operating lease right of use assets
12,667

 
2,701

 
—

Marketable securities, less current portion
40

 
40

 
40

Deferred income taxes
1,474

 
1,443

 
1,462

Goodwill
77,051

 
76,848

 
76,407

Other assets
7,394

 
5,848

 
2,220

Total assets
$
208,397

 
$
191,295

 
$
198,925

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable
$
20,641

 
$
14,346

 
$
9,216

Deferred revenue
1,205

 
1,331

 
1,883

Operating lease liability obligations
1,870

 
1,579

 
—

Income taxes payable
325

 
270

 
124

Provision for litigation
—

 
—

 
9,000

Other current liabilities
12,516

 
15,227

 
12,922

Total current liabilities
36,557

 
32,753

 
33,145

Operating lease liability obligations, less current portion
13,331

 
1,325

 
—

Deferred income taxes
123

 
140

 
152

Deferred revenue, less current portion
162

 
149

 
42

Other long-term liabilities
300

 
283

 
435

Total liabilities
50,473

 
34,650

 
33,774

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; 116,513 115,760 and 114,246 shares issued and outstanding at September 30, 2019, June 30, 2019 and December 31, 2018, respectively
117

 
116

 
114

Additional paid-in capital
524,758

 
520,375

 
513,682

Accumulated other comprehensive loss
(9,837
)
 
(9,483
)
 
(10,033
)
Accumulated deficit
(357,114
)
 
(354,363
)
 
(338,612
)
Total stockholders’ equity
157,924

 
156,645

 
165,151

Total liabilities and stockholders’ equity
$
208,397

 
$
191,295

 
$
198,925

 
 
 
 
 
 

 


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
 
2019
 
2019
 
Change
 
2018
 
Change
 
2019
 
2018
 
Change
Revenue
$
51,321

 
$
45,904

 
12
 %
 
$
49,315

 
4
 %
 
$
140,505

 
$
151,678

 
(7
)%
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
25,602

 
22,769

 
12
 %
 
21,519

 
19
 %
 
71,311

 
63,779

 
12
 %
Depreciation — network
4,961

 
4,628

 
7
 %
 
3,761

 
32
 %
 
13,905

 
12,337

 
13
 %
Total cost of revenue
30,563

 
27,397

 
12
 %
 
25,280

 
21
 %
 
85,216

 
76,116

 
12
 %
Gross profit
20,758

 
18,507

 
12
 %
 
24,035

 
(14
)%
 
55,289

 
75,562

 
(27
)%
Gross profit percentage
40.4
%
 
40.3
%
 
 
 
48.7
%
 
 
 
39.4
%
 
49.8
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
7,356

 
8,340

 
(12
)%
 
7,851

 
(6
)%
 
23,231

 
24,890

 
(7
)%
Sales and marketing (1)
10,713

 
10,994

 
(3
)%
 
9,766

 
10
 %
 
32,679

 
30,068

 
9
 %
Research and development (1)
5,160

 
6,013

 
(14
)%
 
5,882

 
(12
)%
 
17,075

 
18,294

 
(7
)%
Depreciation and amortization
172

 
127

 
35
 %
 
616

 
(72
)%
 
545

 
1,837

 
(70
)%
Total operating expenses
23,401

 
25,474

 
(8
)%
 
24,115

 
(3
)%
 
73,530

 
75,089

 
(2
)%
Operating (loss) income
(2,643
)
 
(6,967
)
 
NM

 
(80
)
 
NM

 
(18,241
)
 
473

 
NM

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(10
)
 
(10
)
 
NM

 
(10
)
 
NM

 
(30
)
 
(76
)
 
NM

Interest income
81

 
110

 
NM

 
177

 
NM

 
402

 
440

 
NM

Settlement and patent license income
—

 
—

 
NM

 
—

 
NM

 
—

 
14,900

 
NM

Other, net
(13
)
 
(70
)
 
NM

 
(246
)
 
NM

 
(89
)
 
(355
)
 
NM

Total other income (expense)
58

 
30

 
NM

 
(79
)
 
NM

 
283

 
14,909

 
NM

(Loss) income before income taxes
(2,585
)
 
(6,937
)
 
NM

 
(159
)
 
NM

 
(17,958
)
 
15,382

 
NM

Income tax expense
166

 
255

 
NM

 
113

 
NM

 
544

 
347

 
NM

Net (loss) income
$
(2,751
)
 
$
(7,192
)
 
NM

 
$
(272
)
 
NM

 
$
(18,502
)
 
$
15,035

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.02
)
 
$
(0.06
)
 
 
 
$
—

 
 
 
$
(0.16
)
 
$
0.13

 
 
Diluted
$
(0.02
)
 
$
(0.06
)
 
 
 
$
—

 
 
 
$
(0.16
)
 
$
0.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
116,270

 
115,275

 
 
 
112,760

 
 
 
115,318

 
111,626

 
 
Diluted
116,270

 
115,275

 
 
 
112,760

 
 
 
115,318

 
120,025

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2019
 
2019
 
2018
 
2019
 
2018
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
331

 
$
377

 
$
352

 
$
1,119

 
$
1,059

General and administrative
2,006

 
2,140

 
1,887

 
6,240

 
5,666

Sales and marketing
584

 
598

 
638

 
1,666

 
1,874

Research and development
437

 
534

 
544

 
1,438

 
1,746

Total share-based compensation
$
3,358

 
$
3,649

 
$
3,421

 
$
10,463

 
$
10,345

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,961

 
$
4,628

 
$
3,761

 
$
13,905

 
$
12,337

Other depreciation and amortization
172

 
127

 
616

 
545

 
1,837

Total depreciation and amortization
$
5,133

 
$
4,755

 
$
4,377

 
$
14,450

 
$
14,174

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and marketable securities:
$
(10,872
)
 
$
(9,719
)
 
$
7,065

 
$
(32,416
)
 
$
3,319

 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
609

 
621

 
667

 
609

 
667

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
609

 
594

 
551

 
609

 
551




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,
 
2019
 
2019
 
2018
 
2019
 
2018
Operating activities
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(2,751
)
 
$
(7,192
)
 
$
(272
)
 
$
(18,502
)
 
$
15,035

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,133

 
4,755

 
4,377

 
14,450

 
14,174

Share-based compensation
3,358

 
3,649

 
3,421

 
10,463

 
10,345

Settlement and patent license income
—

 
—

 
—

 
—

 
(14,900
)
Foreign currency remeasurement (gain) loss
21

 
(135
)
 
64

 
(104
)
 
(97
)
Deferred income taxes
(61
)
 
82

 
(16
)
 
(30
)
 
(86
)
Gain on sale of property and equipment
(5
)
 
(21
)
 
(18
)
 
(56
)
 
(131
)
Accounts receivable charges
580

 
437

 
157

 
1,274

 
453

Amortization of premium on marketable securities
9

 
8

 
24

 
29

 
82

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(5,300
)
 
(2,031
)
 
5,558

 
(11,051
)
 
5,781

Prepaid expenses and other current assets
(885
)
 
582

 
(2,757
)
 
(777
)
 
(2,530
)
Income taxes receivable
45

 
—

 
7

 
43

 
(56
)
Other assets
781

 
(1,685
)
 
(192
)
 
(2,641
)
 
(759
)
Accounts payable and other current liabilities
(2,798
)
 
4,230

 
3,058

 
3,675

 
(2,526
)
Deferred revenue
(112
)
 
(148
)
 
(82
)
 
(557
)
 
85

Income taxes payable
61

 
81

 
(113
)
 
204

 
(350
)
Payments related to litigation, net
—

 
(1,520
)
 
(1,520
)
 
(3,040
)
 
(7,540
)
Other long term liabilities
16

 
22

 
(4
)
 
(137
)
 
(173
)
Net cash (used in) provided by operating activities
(1,908
)
 
1,114

 
11,692

 
(6,757
)
 
16,807

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
—

 
(1,013
)
 
(15,962
)
 
(10,279
)
 
(15,962
)
Sale and maturities of marketable securities
1,000

 
18,929

 
8,850

 
32,153

 
20,365

Purchases of property and equipment
(7,750
)
 
(11,456
)
 
(4,214
)
 
(24,224
)
 
(10,495
)
Proceeds from sale of property and equipment
5

 
17

 
18

 
51

 
131

Net cash (used in) provided by investing activities
(6,745
)
 
6,477

 
(11,308
)
 
(2,299
)
 
(5,961
)
Financing activities
 
 
 
 
 
 
 
 
 
Payment of employee tax withholdings related to restricted stock vesting
(1,015
)
 
(619
)
 
(996
)
 
(2,528
)
 
(3,808
)
Cash paid for purchase of common stock
—

 
—

 
—

 
—

 
(3,800
)
Proceeds from employee stock plans
13

 
1,095

 
737

 
1,116

 
4,799

Net cash (used in) provided by financing activities
(1,002
)
 
476

 
(259
)
 
(1,412
)
 
(2,809
)
Effect of exchange rate changes on cash and cash equivalents
(211
)
 
132

 
(166
)
 
(83
)
 
(271
)
Net (decrease) increase in cash and cash equivalents
(9,866
)
 
8,199

 
(41
)
 
(10,551
)
 
7,766

Cash and cash equivalents, beginning of period
24,698

 
16,499

 
28,719

 
25,383

 
20,912

Cash and cash equivalents, end of period
$
14,832

 
$
24,698

 
$
28,678

 
$
14,832

 
$
28,678

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 (Loss)
(In thousands)
(Unaudited
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2019
 
June 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net (loss) income
$
(2,751
)
 
$
(0.02
)
 
$
(7,192
)
 
$
(0.06
)
 
$
(272
)
 
$
—

 
$
(18,502
)
 
$
(0.16
)
 
$
15,035

 
$
0.13

Settlement and patent license income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(14,900
)
 
(0.13
)
Share-based compensation
3,358

 
0.03

 
3,649

 
0.03

 
3,421

 
0.03

 
10,463

 
0.09

 
10,345

 
0.09

Litigation expenses
—

 
—

 
—

 
—

 
19

 
—

 
—

 
—

 
2,904

 
0.03

Non-GAAP net income (loss)
$
607

 
$
0.01

 
$
(3,543
)
 
$
(0.03
)
 
$
3,168

 
$
0.03

 
$
(8,039
)
 
$
(0.07
)
 
$
13,384

 
$
0.12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per share calculation:
 
 
116,270

 
 
 
115,275

 
 
 
112,760

 
 
 
115,318

 
 
 
111,626


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,
 
2019
 
2019
 
2018
 
2019
 
2018
U.S. GAAP net (loss) income
$
(2,751
)
 
$
(7,192
)
 
$
(272
)
 
$
(18,502
)
 
$
15,035

Depreciation and amortization
5,133

 
4,755

 
4,377

 
14,450

 
14,174

Interest expense
10

 
10

 
10

 
30

 
76

Interest and other (income) expense
(68
)
 
(40
)
 
69

 
(313
)
 
(85
)
Income tax expense
166

 
255

 
113

 
544

 
347

EBITDA
$
2,490

 
$
(2,212
)
 
$
4,297

 
$
(3,791
)
 
$
29,547

Settlement and patent license income
—

 
—

 
—

 
—

 
(14,900
)
Share-based compensation
3,358

 
3,649

 
3,421

 
10,463

 
10,345

Litigation expenses
—

 
—

 
19

 
—

 
2,904

Adjusted EBITDA
$
5,848

 
$
1,437

 
$
7,737

 
$
6,672

 
$
27,896

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 16, 2019, 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) 2019 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