The company now sees revs of $28.6 million to $29.1 million on a GAAP basis, or $27.5 million to $28 million non-GAAP; old guidance was for $27 million to $28 million GAAP, $25.5 million to $26.5 million non-GAAP. The company also said it will report an “improved GAAP and non-GAAP loss” for the quarter relative to previous guidance.
Limelight also said it will have to restate results for 2006 and for the first and second quarter of 2007. The restatements reflect discovery of two accounting errors. In one case, the company discovered that for a 15-month period it was under-billing one of the customers of its content delivery network. The company also found an error in calculation of stock-based compensation expense. Limelight said that it found “material weaknesses in its internal controls.”
Limelight said it will file the restatement soon. It will announce full third quarter results during the week of November 5.