Limelight Reports, Follows Akamai’s Lead

May 6th, 2010 by · 2 Comments

Limelight Networks (NASDAQ:LLNW, news, filings) had a tough act to follow, after its larger competitor Akamai (NASDAQ:AKAM, news, filings) surprised the markets.  The question hanging in the air was whether it came at the expense of its smaller rivals or was the CDN pie growing?  With its Q1 report, Limelight suggests that the latter was the case in Q1 as revenues exceeded both guidance and estimates.  Here is a quick table placing their financial results in context with recent performance:

$ in millions Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
Revenue 33.2 32.3 32.5 33.6 36.1
COS 21.5 21.1 20.9 22.1 21.0
R&D 1.9 1.9 2.0 2.1 2.6
SG&A 20.0 14.1 14.5 18.1 18.3
Adj.Ebitda 4.7 6.0 5.8 3.3 5.1
Adj.EPS (0.02) (0.01) (0.01) (0.04) (0.01)

For the second quarter, Limelight expects revenues of $41-43M which will include some 2 months of revenue from the acquisition of EyeWonder.

Limelight also got some good news this week on the legal front.  Ths US Court of Appeals for the Federal Circuit turned away Level 3’s appeal, reaffirming last year’s court victory.  For all the talk of patents in this sector, the only people that have made any money off of them have been lawyers.

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Categories: Content Distribution · Financials

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2 Comments So Far

  • carlk says:

    IF R&D potentially ties into lawyer driven patents during or later on, that’s an awful lot of R&D for the Q. They increased this expenditure by nearly 24 percent.

    I wonder if (3) has recourse against IBM for such a waste of PRECIOUS RESOURCES, that being CASH.

    I wonder when they fire the person in charge of such legal disasters as well, since that person should be held responsible for LOSING consistently in the arena.

  • Brian says:

    Carl, what the hell are you talking about? You must be the dumbest poster on this site. You don’t even make sense.

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