- 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 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.”
Financial Tables
LIMELIGHT NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands, except per share data)
June 30, December 31,
2015 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
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 0 % 42,928
42,891 0 % 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 0 % 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 & 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 ) -1045 % Total other income
(expense) (56 ) 1,882 -103 % (135 ) -59
% 1,827 (60 ) -3145 % 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)
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
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) increase 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 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.
LIMELIGHT NETWORKS, INC. Reconciliation of U.S. GAAP Net
Loss to Non-GAAP Net Loss (In thousands)
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 0.00 536 0.01 (1,155 ) (0.01 ) 809
0.01 Amortization of intangible assets 201 0.00 197 0.00 338 0.00
399 0.00 675 0.01 Loss on sale of the Web Content Management
business - - - - - - - - 62 0.00 Income from discontinued
operations - - - -
(269 ) - - -
(269 ) (0.00 ) 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 Web Content
Management 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. EDT (1:30 p.m. PDT) 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 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150803006199/en/
Limelight Networks, Inc.Sajid Malhotra,
602-850-5778ir@llnw.com
Limelight Networks (NASDAQ:LLNW)
過去 株価チャート
から 6 2024 まで 7 2024
Limelight Networks (NASDAQ:LLNW)
過去 株価チャート
から 7 2023 まで 7 2024