United States
United Kingdom
France
Germany
Japan| Limelight Networks(TM) Reports First Quarter 2009 Results |
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- Revenue of - Reversal of - Launch of LimelightSITE(TM) with over 150 customers, entry into enterprise and e-commerce sectors - Addition of approximately 35 net new customers TEMPE, Ariz., " Financial Highlights For the first quarter of 2009, the company reported revenue of Non-GAAP net loss, before stock based compensation, litigation costs, and
reversal of a previously recorded damage accrual, was Capital purchases incurred were Second-Quarter Outlook
Financial Tables
LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
March 31, December 31,
2009 2008
---- ----
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $146,791 $138,180
Marketable securities 15,197 36,463
Accounts receivable, net of reserves of
Use of Non-GAAP Financial Measures To evaluate our business, we consider and use Non-GAAP net income and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors' use of operating performance comparisons from period to period. The terms Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are not defined under U.S. generally accepted accounting principles, or 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, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs 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 EBITDA adjusted for share-based compensation and litigation
and damage costs 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;
-- 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 and EBITDA adjusted for share-based
compensation and litigation and damage costs 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 and EBITDA adjusted for
share-based compensation and litigation and damage costs 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 and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management's analysis of business performance. Non-GAAP Net Income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs 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
LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited)
Three Months Ended
------------------
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
---- ---- ---- ----
GAAP net income (loss) $55,135 $(13,942) $(18,442) $(55,345)
Deferred revenue - - - 729
Deferred cost of traffic and
services - - - 21
Provision for litigation (65,645) 1,295 7,134 48,130
Share-based compensation 4,487 5,508 3,960 3,625
Litigation defense expenses 3,945 4,576 5,366 2,772
----- ----- ----- -----
Non-GAAP net loss $(2,078) $(2,563) $(1,982) $(68)
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LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
Adjusted for Share-Based Compensation and Litigation and Damage Costs
(In thousands)
(Unaudited)
Three Months Ended
------------------
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
---- ---- ---- ----
GAAP net income (loss) $55,135 $(13,942) $(18,442) $(55,345)
Add: depreciation and
amortization 7,088 7,317 6,260 5,707
Add: interest expense 11 11 21 6
Less: interest and other income (610) (294) (2,062) (1,858)
Plus income tax (benefit)
expense 320 94 (183) 1,799
--- --- ---- -----
EBITDA 61,944 (6,814) (14,406) (49,691)
Add: provision for litigation (65,645) 1,295 7,134 48,130
Add: share-based compensation 4,487 5,508 3,960 3,625
Add: litigation defense
expenses 3,945 4,576 5,366 2,772
----- ----- ----- -----
EBITDA adjusted for share-based
compensation, litigation
and damage costs $4,731 $4,565 $2,054 $4,836
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Conference Call Management will host a quarterly conference call for investors today
beginning at Safe-Harbor Statement This press release contains forward-looking statements concerning, among
other things, the outlook for the Company's revenues, net loss and stock-based
compensation expense for the first quarter of 2009, customer growth, market
growth, pricing pressures, expansion into additional market segments, product
and services improvements and litigation and related expenses. Forward-looking
statements are not guarantees and are subject to a number of risks and
uncertainties that could cause actual results to differ materially including,
but not limited to, risks and uncertainties discussed in the Company's Annual
Report on Form 10K and other filings with the About Copyright (C) 2009 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners Media Contact: Paul Alfieri of Limelight Networks, Inc. |
