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Thursday, Aug 8
Limelight tumbles on Q2 miss; company losing ground to Akamai/Level 3
- Limelight's (LLNW -9.5%) Q2 revenue fell 4% Y/Y. Akamai's (AKAM -0.2%) revenue rose 14% Y/Y in Q2 (fueled by 19% growth for its value-added performance & security business), and Level 3's (LVLT +1.1%) CDN revenue rose 30%.
- Limelight says near-term results could be affected by a decision to abandon "contracts that do not provide long-term economic value."
- On the CC, Limelight stated its CDN revenue fell 9% Q/Q and 10% Y/Y, thanks in part to the end of a reseller contract with Global Crossing a year ago, and lower prices.
- Core CDN revenue rose 1% Y/Y but fell Q/Q, something Limelight blames on "decreases in traffic amongst some of our top accounts." Netflix, which is migrating traffic to its Open Connect CDN, is one of those accounts. However, Limelight adds its deal with Netflix (previously set to expire in 2013) has been extended to 2014.
- Opex down fractionally Y/Y to $26.2M. Sales/marketing spend down, R&D and G&A spend up.
- Cash/equivalents stood at $119M at the end of Q2, -$1M Q/Q.
- Q2 results, PR