Limelight Networks(R) Reports Third Quarter 2011 Results

Limelight Networks, Inc. today reported third quarter 2011 financial results.

"We were pleased with our progress in scaling Limelight Networks' globally distributed, high-performance content delivery, storage and compute platform in the quarter. This platform serves as a great foundation for our core growth initiative -- the launch of high-value, integrated software-as-a-service and platform-as-a-service offerings, which are differentiated from those of point solution providers. Revenue from these value-added services excluding EyeWonder and chors grew 73% year-over-year," said Jeff Lunsford, chairman and chief executive officer. "In the quarter, we saw many instances of customer success, as Limelight solutions enabled our clients to increase competitiveness, enhance user experience and operate more nimbly and efficiently in today's hyper-connected world."

The third quarter of 2011

For the third quarter of 2011, the Company reported revenue of $42.4 million from continuing operations, adjusted EBITDA of $3.6 million and non-GAAP net loss, previously share-based compensation, litigation expenses, amortization of intangible assets, acquisition-related expenses, and discontinued operations of $2.2 million or 2 cents per basic share. GAAP net loss from continuing operations was $6.4 million, or 6 cents per basic share. Total net income, which includes the gain from discontinued operations of roughly $11.4 million, was $5.0 million or 4 cents per basic share.

To evaluate our business, we consider and use Non-GAAP net income and Adjusted EBITDA as a supplemental measure 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 to be an important indicator of overall business performance because it allows us for instance the impact of the effects of share-based compensation, litigation expenses, amortization of intangibles, acquisition related expenses and discontinued operations. We define EBITDA as GAAP net income earlier interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization, and discontinued operations. We believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA adjusted for operational expenses that we do not consider reflective of our ongoing operations. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We as well believe use of Adjusted EBITDA facilitates investors' use of operating performance comparisons from period to period. Should the contingency arise, it should be noted that our performance-based executive officer bonus structure is tied closely to our performance as measured in some cases by certain non-GAAP financial measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP net income and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented in thousands:

This press release contains forward-looking statements concerning, among other things, the outlook for the Company's earnings, net loss and stock-based compensation expenses, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements, the integration of acquired businesses and litigation and acquisition related expenses. Forward-looking statements represent the current judgment and expectations of Limelight Networks and are not guarantees and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, nevertheless not limited to, risks and uncertainties discussed in the Company's Annual Report on Form 10K and other filings with the Securities and Exchange Commission and the final review of the results and amendments and preparation of quarterly financial statements, including consultation with our outside auditors. Consequently, readers are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason.

Copyright 2011 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners.

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