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 9, 2016
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 February 9, 2016, the Company issued a press release regarding its financial results for the fourth quarter ended December 31, 2015, and certain other information. The full text of this press release is furnished herewith as Exhibit 99.1.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
 
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits
 
 
 
 
Exhibit
Number
 
Description
99.1
 
Limelight Networks, Inc. Press Release dated February 9, 2016 (furnished herewith).











SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
LIMELIGHT NETWORKS, INC.
 
 
 
 
Dated: February 9, 2016
 
 
 
By:
 
/s/ Michael DiSanto
 
 
 
 
 
 
Michael DiSanto
Chief Administrative and Legal Officer & Secretary








EXHIBIT INDEX
 
 
 
 
Exhibit
Number
 
Description
99.1
 
Limelight Networks, Inc. Press Release dated February 9, 2016 (furnished herewith).





Exhibit 99.1

February 9, 2016
Limelight Networks(R) Reports Financial Results for the Fourth Quarter and Full Year of 2015
•
Q4 Revenue of $42.7 million
•
GAAP EPS of $(0.04), Non-GAAP EPS break-even
•
$73.0 million of cash, cash equivalents and marketable securities, up $3.0 million from Q3 2015
•
2016 revenue expected to be between $180 and $195 million
Limelight Networks, Inc. (Nasdaq:LLNW) (Limelight), a global leader in digital content delivery, today reported revenue of $42.7 million for the fourth quarter of 2015, up 5 percent, compared to $40.7 million in the fourth quarter of 2014, and up six percent when adjusting for the impact of foreign currency fluctuations.
GAAP gross margins were 41.0% in the fourth quarter of 2015, an increase of 140 basis points from 39.6% in the fourth quarter of 2014, and up 320 basis points from 37.8% in the third quarter of 2015.
On a GAAP basis, Limelight reported a loss from continuing operations of $4.1 million, or $0.04 per basic share, for the fourth quarter of 2015, compared to a loss from continuing operations of $5.0 million, or $0.05 per basic share in the fourth quarter of 2014. Non-GAAP net loss was $0.4 million, or break-even per basic share for the fourth quarter of 2015, compared to a non-GAAP net loss of $2.1 million, or $0.02 per basic share in the fourth quarter of 2014.
EBITDA from continuing operations was $2.1 million for the fourth quarter of 2015, compared to negative $1.2 million for the fourth quarter of 2014. Adjusted EBITDA was $5.3 million for the fourth quarter of 2015 compared to $1.5 million for the fourth quarter of 2014.
For the full year ended December 31, 2015, Limelight reported revenue of $170.9 million compared to $162.3 million for the year ended December 31, 2014. Revenue in 2014 included $11.3 million of revenue from Netflix. Currency fluctuations negatively impacted full year 2015 results by $3.3 million.
GAAP gross margins were 39.9% for the year ended December 31, 2015, compared to 39.1% for the year ended December 31, 2014.
On a GAAP basis, Limelight reported a loss from continuing operations of $24.0 million, or $0.24 per basic share, for the year ended December 31, 2015, compared to a loss from continuing operations of $24.9 million, or $0.25 per basic share, in 2014.
Non-GAAP net loss was $11.2 million, or $0.11 per basic share, for the year ended December 31, 2015, compared to a non-GAAP net loss of $12.3 million, or $0.13 per basic share, in the same period of 2014.
EBITDA from continuing operations was negative $4.8 million for the year ended December 31, 2015, compared to negative $6.5 million for the year ended December 31, 2014. Adjusted EBITDA was $6.9 million for the year ended December 31, 2015, compared to $4.8 million for the year ended December 31, 2014.
Limelight ended the fourth quarter with 509 employees and employee equivalents, down from 556 at the end of the third quarter of 2015, and down from 520 at the end of 2014.
Commenting on the fourth quarter and full year results, Chief Executive Officer, Robert Lento said, “In 2015 we achieved strong operational and financial improvements. Customer Net Promoter Score, customer attrition, network performance, and voluntary employee turnover all saw material improvements. We grew at the top end of the industry ranges, improved our gross margin, and exited the year with a strong quarter. We expect to build on this performance throughout 2016. Our position in the industry remains strong and is improving.”


Exhibit 99.1

"We believe that years of an intensive, anti-competitive legal battle, has adversely affected our equity value, but we also believe it is our responsibility to defend the interests of our company, our talented employees, and our valued customers against predatory tactics. We will continue to vigorously pursue avenues to eliminate or reduce the potential damages in our longstanding patent fight, while remaining focused on driving business performance that will lead to better alignment between our share price and our view of the company's equity value."
Based on current conditions, Limelight is providing revenue guidance of between $180 million and $195 million for 2016. GAAP gross margin is expected to improve by 200 basis points over 2015 results. Non-GAAP net loss is expected to be between $(0.05) and $0.05 per share for 2016.  Capital expenditures are expected to be approximately $20 million dollars.  







Exhibit 99.1

Financial Tables
Limelight Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
December 31,
2015
 
December 31,
2014
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
44,680

 
$
57,767

Marketable securities
28,322

 
35,317

Accounts receivable, net
26,795

 
22,622

Income taxes receivable
170

 
237

Deferred income taxes
89

 
78

Prepaid expenses and other current assets
9,578

 
9,625

Total current assets
109,634

 
125,646

Property and equipment, net
36,143

 
32,636

Marketable securities, less current portion
40

 
40

Deferred income taxes, less current portion
1,252

 
1,364

Goodwill
76,143

 
76,133

Other intangible assets, net
15

 
1,071

Other assets
2,400

 
4,451

Total assets
$
225,627

 
$
241,341

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
9,137

 
$
7,065

Deferred revenue
2,890

 
3,509

Capital lease obligations
466

 
223

Income taxes payable
204

 
248

Other current liabilities
10,857

 
14,383

Total current liabilities
23,554

 
25,428

Capital lease obligations, less current portion
1,436

 
135

Deferred income taxes
137

 
170

Deferred revenue, less current portion
92

 
405

Other long-term liabilities
2,311

 
3,040

Total liabilities
27,530

 
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; 102,299 and 98,409 shares issued and outstanding at December 31, 2015 and 2014, respectively
102

 
98

Additional paid-in capital
477,202

 
464,294

Accumulated other comprehensive loss
(10,812
)
 
(7,786
)
Accumulated deficit
(268,395
)
 
(244,443
)
Total stockholders’ equity
198,097

 
212,163

Total liabilities and stockholders’ equity
$
225,627

 
$
241,341


 


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
 
2015
 
2015
 
Change
 
2014
 
Change
 
2015
 
2014
 
Change
Revenues
$
42,739

 
$
42,049

 
2
 %
 
$
40,727

 
5
 %
 
$
170,912

 
$
162,259

 
5
 %
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services (1)
20,388

 
21,502

 
(5
)%
 
20,613

 
(1
)%
 
84,818

 
82,176
 
3
 %
Depreciation — network
4,811

 
4,636

 
4
 %
 
3,985

 
21
 %
 
17,975

 
16,673
 
8
 %
Total cost of revenue
25,199

 
26,138

 
(4
)%
 
24,598

 
2
 %
 
102,793

 
98,849
 
4
 %
Gross profit
17,540

 
15,911

 
10
 %
 
16,129

 
9
 %
 
68,119

 
63,410
 
7
 %
Gross profit percentage
41.0
%
 
37.8
%
 
 
 
39.6
%
 
 
 
39.9
%
 
39.1
%
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative (1)
5,509

 
6,586

 
(16
)%
 
6,210

 
(11
)%
 
25,027

 
28,176
 
(11
)%
Sales and marketing (1)
8,101

 
9,489

 
(15
)%
 
9,103

 
(11
)%
 
37,868

 
37,458
 
1
 %
Research and development (1)
6,678

 
7,429

 
(10
)%
 
6,014

 
11
 %
 
28,016

 
20,965
 
34
 %
Depreciation and amortization
1,005

 
648

 
55
 %
 
661

 
52
 %
 
2,929

 
3,529
 
(17
)%
Total operating expenses
21,293

 
24,152

 
(12
)%
 
21,988

 
(3
)%
 
93,840

 
90,128
 
4
 %
Operating loss
(3,753
)
 
(8,241
)
 
(54
)%
 
(5,859
)
 
(36
)%
 
(25,721
)
 
(26,718)
 
(4
)%
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(25
)
 
—

 
NA

 
(6
)
 
317
 %
 
(29
)
 
(32)
 
(9
)%
Interest income
86

 
82

 
5
 %
 
73

 
18
 %
 
317

 
276
 
15
 %
Other, net
(407
)
 
473

 
(186
)%
 
807

 
(150
)%
 
1,748

 
1,821
 
(4
)%
Total other income (expense)
(346
)
 
555

 
(162
)%
 
874

 
(140
)%
 
2,036

 
2,065
 
(1
)%
Loss from continuing operations
  before income taxes
(4,099
)
 
(7,686
)
 
(47
)%
 
(4,985
)
 
(18
)%
 
(23,685
)
 
(24,653)
 
(4
)%
Income tax expense
46

 
76

 
(39
)%
 
22

 
109
 %
 
267

 
203
 
32
 %
Loss from continuing operations
(4,145
)
 
(7,762
)
 
(47
)%
 
(5,007
)
 
(17
)%
 
(23,952
)
 
(24,856)
 
(4
)%
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from discontinued operations, net of income taxes
—

 
—

 
NA

 
—

 
NA

 
—

 
265

 
(100
)%
Net loss
$
(4,145
)
 
$
(7,762
)
 
(47
)%
 
$
(5,007
)
 
(17
)%
 
$
(23,952
)
 
$
(24,591
)
 
(3
)%
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic and diluted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
(0.04
)
 
$
(0.08
)
 
 
 
$
(0.05
)
 
 
 
$
(0.24
)
 
$
(0.25
)
 
 
Discontinued operations
—

 
—

 
 
 
—

 
 
 
—

 
—

 
 
Total
$
(0.04
)
 
$
(0.08
)
 
 
 
$
(0.05
)
 
 
 
$
(0.24
)
 
$
(0.25
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in per
  share calculation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
101,391

 
100,552

 
 
 
98,637

 
 
 
100,105

 
98,365

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2015
 
2015
 
2014
 
2015
 
2014
Share-based compensation:
 
 
 
 
 
 
 
 
 
Cost of services
$
563

 
$
400

 
$
490

 
$
2,047

 
$
1,956

General and administrative
1,002

 
1,513

 
1,202

 
5,398

 
4,741

Sales and marketing
716

 
643

 
624

 
2,657

 
2,317

Research and development
582

 
568

 
375

 
2,236

 
1,477

Total share-based compensation
$
2,863

 
$
3,124

 
$
2,691

 
$
12,338

 
$
10,491

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
Network-related depreciation
$
4,811

 
$
4,636

 
$
3,985

 
$
17,975

 
$
16,673

Other depreciation and amortization
544

 
445

 
457

 
1,866

 
2,391

Amortization of intangible assets
461

 
203

 
204

 
1,063

 
1,138

Total depreciation and amortization
$
5,816

 
$
5,284

 
$
4,646

 
$
20,904

 
$
20,202

 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and marketable securities:
$
3,427

 
$
(5,342
)
 
$
(8,172
)
 
$
(20,082
)
 
$
(25,384
)
 
 
 
 
 
 
 
 
 
 
End of period statistics:
 
 
 
 
 
 
 
 
 
Approximate number of active customers
963

 
981

 
1,095

 
963

 
1,095

 
 
 
 
 
 
 
 
 
 
Number of employees and employee equivalents
509

 
556

 
520

 
509

 
520




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,
 
2015
 
2015
 
2014
 
2015
 
2014
Operating activities
 
 
 
 
 
 
 
 
 
Net loss
$
(4,145
)
 
$
(7,762
)
 
$
(5,007
)
 
$
(23,952
)
 
$
(24,591
)
Income from discontinued operations
—

 
—

 
—

 
—

 
265

Net loss from continuing operations
(4,145
)
 
(7,762
)
 
(5,007
)
 
(23,952
)
 
(24,856
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities of continuing operations:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,816

 
5,284

 
4,646

 
20,904

 
20,202

Share-based compensation
2,863

 
3,124

 
2,691

 
12,338

 
10,491

Foreign currency remeasurement (gain) loss
492

 
(488
)
 
(1,100
)
 
(1,591
)
 
(2,167
)
Deferred income taxes
67

 
94

 
(174
)
 
46

 
(359
)
Accounts receivable charges
299

 
268

 
(75
)
 
1,037

 
408

Amortization of premium on marketable securities
42

 
46

 
85

 
194

 
459

Non cash tax benefit associated with income from discontinued operations
—

 
—

 
—

 
—

 
(59
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
57

 
4,025

 
(104
)
 
(5,210
)
 
(1,600
)
Prepaid expenses and other current assets
(490
)
 
498

 
(747
)
 
(194
)
 
(1,792
)
Income taxes receivable
9

 
24

 
95

 
44

 
150

Other assets
1,477

 
578

 
616

 
3,064

 
1,607

Accounts payable and other current liabilities
(425
)
 
(1,156
)
 
(977
)
 
85

 
122

Deferred revenue
(681
)
 
(568
)
 
(216
)
 
(932
)
 
(1,109
)
Income taxes payable
(2
)
 
(78
)
 
(19
)
 
(80
)
 
(233
)
Other long term liabilities
1,358

 
(225
)
 
(251
)
 
688

 
(796
)
Net cash provided by (used in) operating activities of continuing operations
6,737

 
3,664

 
(537
)
 
6,441

 
468

Investing activities
 
 
 
 
 
 
 
 
 
Purchases of marketable securities
—

 
(4,899
)
 
(7,813
)
 
(16,821
)
 
(25,482
)
Maturities of marketable securities
5,700

 
5,160

 
6,600

 
22,620

 
22,150

Purchases of property and equipment
(3,960
)
 
(8,693
)
 
(4,597
)
 
(24,714
)
 
(18,581
)
Proceeds from sale of discontinued operations
—

 
—

 
—

 
—

 
414

Net cash provided by (used in) investing activities of continuing operations
1,740

 
(8,432
)
 
(5,810
)
 
(18,915
)
 
(21,499
)
Financing activities
 
 
 
 
 
 
 
 
 
Payments on capital lease obligations
(95
)
 
—

 
(54
)
 
(453
)
 
(466
)
Payment of employee tax withholdings related to restricted stock vesting
(348
)
 
(335
)
 
(340
)
 
(2,627
)
 
(1,795
)
Cash paid for purchase of common stock
—

 
—

 
(2,042
)
 
(957
)
 
(4,542
)
Proceeds from line of credit
—

 
—

 
—

 
—

 
—

Proceeds from employee stock plans
1,287

 
212

 
414

 
4,018

 
1,381

Net cash provided by (used in) financing activities of continuing operations
844

 
(123
)
 
(2,022
)
 
(19
)
 
(5,422
)
Effect of exchange rate changes on cash and cash equivalents
(93
)
 
(159
)
 
(892
)
 
(594
)
 
(1,732
)
Discontinued operations
 
 
 
 
 
 
 
 
 
Cash used in operating activities of discontinued operations
—

 
—

 
—

 
—

 
(4
)
Net increase (decrease) in cash and cash equivalents
9,228

 
(5,050
)
 
(9,261
)
 
(13,087
)
 
(28,189
)
Cash and cash equivalents, beginning of period
35,452

 
40,502

 
67,028

 
57,767

 
85,956

Cash and cash equivalents, end of period
$
44,680

 
$
35,452

 
$
57,767

 
$
44,680

 
$
57,767

Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles (Non-GAAP) net 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 loss to be an important indicator of overall business performance. We define Non-GAAP net loss to be U.S. GAAP net loss, adjusted to exclude share-based compensation, litigation expenses, amortization of intangible assets, the gain (loss) on sale of our web content management (WCM) business and discontinued operations. 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 EBITDA from continuing operations as U.S. GAAP net loss adjusted to exclude interest and other (income) expense, interest expense, income tax expense, depreciation and amortization,


Exhibit 99.1

discontinued operations and gain (loss) on sale of WCM. We define Adjusted EBITDA as EBITDA from continuing operations adjusted to exclude share-based compensation and litigation 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 loss, EBITDA from continuing operations 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 loss, EBITDA from continuing operations and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net loss, EBITDA from continuing operations and Adjusted EBITDA should not be considered in isolation, or as a substitute for net 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 from continuing operations 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;
•
these measures do not reflect the cash requirements necessary for litigation costs;
•
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 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), EBITDA from continuing operations, 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
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 Loss
(In thousands)
(Unaudited)
 
Three Months Ended
 
Twelve Months Ended
 
December 31, 2015
 
September 30, 2015
 
December 31, 2014
 
December 31, 2015
 
December 31, 2014
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
 
Amount
 
Per Share
U.S. GAAP net loss
$
(4,145
)
 
$
(0.04
)
 
$
(7,762
)
 
$
(0.08
)
 
$
(5,007
)
 
$
(0.05
)
 
$
(23,952
)
 
$
(0.24
)
 
$
(24,591
)
 
$
(0.25
)
Share-based compensation
2,863

 
0.03

 
3,124

 
0.03

 
2,691

 
0.03

 
12,338

 
0.12

 
10,491

 
0.11

Litigation defense expenses
402

 
—

 
140

 
—

 
(3
)
 
—

 
(613
)
 
(0.01
)
 
817

 
0.01

Amortization of intangible
  assets
461

 
—

 
203

 
—

 
204

 
—

 
1,063

 
0.01

 
1,138

 
0.01

Loss on sale of the WCM
  business
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
62

 
—

Loss (income) from discontinued operations
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(265
)
 
—

Non-GAAP net loss
$
(419
)
 
$
—

 
$
(4,295
)
 
$
(0.04
)
 
$
(2,115
)
 
$
(0.02
)
 
$
(11,164
)
 
$
(0.11
)
 
$
(12,348
)
 
$
(0.13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares
used in per share calculation:
 
 
101,391

 
 
 
100,552

 
 
 
98,637

 
 
 
100,105

 
 
 
98,365



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,
 
2015
 
2015
 
2014
 
2015
 
2014
U.S. GAAP net loss
$
(4,145
)
 
$
(7,762
)
 
$
(5,007
)
 
$
(23,952
)
 
$
(24,591
)
Depreciation and amortization
5,816

 
5,284

 
4,646

 
20,904

 
20,202

Interest expense
25

 
—

 
6

 
29

 
32

Loss on sale of the WCM business
—

 
—

 
—

 
—

 
62

Interest and other (income) expense
321

 
(555
)
 
(880
)
 
(2,065
)
 
(2,159
)
Income tax expense
46

 
76

 
22

 
267

 
203

Loss (income) from discontinued operations
—

 
—

 
—

 
—

 
(265
)
EBITDA from continuing operations
$
2,063

 
$
(2,957
)
 
$
(1,213
)
 
$
(4,817
)
 
$
(6,516
)
Share-based compensation
2,863

 
3,124

 
2,691

 
12,338

 
10,491

Litigation defense expenses
402

 
140

 
(3
)
 
(613
)
 
817

Adjusted EBITDA
$
5,328

 
$
307

 
$
1,475

 
$
6,908

 
$
4,792

Conference Call
At approximately 4:30 p.m. EST (1:30 p.m. PST) today, management will host a quarterly conference call for investors. Investors can access this call toll-free at 877-388-8480 within the United States or +1 678-809-1592 outside of the U.S. The conference call will also be audiocast live from http://www.limelight.com and a replay will be available following the call from the Limelight website.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding our strategic focus; our expectations regarding revenues for the full year 2016; gross margin, non-GAAP net income (loss) and capital expenditures for


Exhibit 99.1

the full year 2016; the growth of our business; the performance of our services; our expectations regarding the Akamai litigation; our future prospects; and our position in our industry. 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 9, 2016, and we undertake no duty to update this information in light of new information or future events, unless required by law.
About Limelight
Limelight Networks (NASDAQ: LLNW), a global leader in digital content delivery, empowers customers to better engage online audiences by enabling them to securely manage and globally deliver digital content, on any device. The company’s award winning Limelight Orchestrate™ platform includes an integrated suite of content delivery technology and services that helps organizations secure digital content, deliver exceptional multi-screen experiences, improve brand awareness, drive revenue, and enhance customer relationships - all while reducing costs.  For more information, please visit www.limelight.com, read our blog, follow us on Twitter , Facebook and LinkedIn and be sure to visit Limelight Connect.”
Copyright (C) 2015 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.
Source: Limelight Networks
Language:
English
CONTACT:
Limelight Networks, Inc.
Sajid Malhotra, 602-850-5778
ir@llnw.com
Ticker Slug:
Ticker: LLNW
Exchange: NASDAQ



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