Despite these gains, on the last-month term FireEye's lower by 9%, Palo Alto Networks' unmoved, Fortinet's down 11%, Cyberark Software's down 6%, Check Point Software Technologies' up 2% and Proofpoint's up 1.7%. Names down today in the space include Imperva (IMPV -2.6%), Symantec (SYMC -0.3%) and Barracuda Networks (CUDA), respectively lower by 12%, 4% and 1% on the month.
Last month, the U.S. District Court in Massachusetts issued a final judgment against Limelight Networks (LLNW +1.8%) requiring the company to pay $51M to Akamai Technologies (AKAM -0.1%) regarding a longstanding dispute over the '703 patent.
Today, Limelight Networks announces this judgment has transfigured into a $54M license to be paid over 12 equal quarterly installments.
Both companies have relinquished any rights to appeal and Limelight Networks will soon have access to the restricted $51M with the flexibility to now pay Akamai Technologies over an extended three-year period of time.
As a result of the agreement, Limelight Networks can operate free from risk of infringing the '703 patent going forward.
Akamai (AKAM -0.9%) has confirmed it prevailed with a $51M judgment in its long-running dispute against Limelight Networks (LLNW +4.8%) over the '703 patents.
That amount reflects damages awarded in 2008 by a jury along with interest. A separate case scheduled for trial in January involves another from the same patent family and seeks additional damages for post-2008 infringement.
"We are extremely pleased after ten years of litigation to have a final judgment entered in Akamai's favor that recognizes Limelight's infringement and the harm it caused," said Aaron Ahola, Akamai's deputy general counsel.
Limelight claimed a victory of sorts as well, saying it has been allocating "precious resources" to avoid a permanent injunction and back up its belief that damages would be less than requested. The company will reclaim about $12M of a $63M letter of credit held for losses, and take a charge in Q2 for the full $51M damages.
Sajid Malhotra, Limelight's (LLNW +4.6%) interim CFO since December and before that its chief strategy officer, has been named the company's permanent CFO. He'll "continue to lead the corporate development and investor relations, facilities and procurement functions in addition to his new responsibilities as CFO."
Limelight announced in November CFO Pete Perrone is stepping down, and that Malhotra would serve as interim CFO until a successor is found. Shares have done well on a day the Nasdaq is up 1.5%.
Limelight (NASDAQ:LLNW) has blasted off after posting mixed Q4 results (revenue missed, EPS beat) and issuing in-line 2016 guidance on its earnings call - the CDN owner expects revenue of $180M-$195M and EPS of -$0.05 to $0.05 vs.a consensus of $189.8M and -$0.02.
Shares went into earnings right at a 52-week low of $0.90, and with Limelight having $73M in cash at the end of Q4, the company's enterprise value is still only $43M.
Boosting Q4 EPS: GAAP gross margin rose 140 bps Y/Y to 41%, and operating expenses fell 12% to $21.3M. Network traffic fell Q/Q, but ASP rose thanks to a mix shift from gaming clients to streaming clients.
With concerns about competition from Akamai and internal CDNs (from Apple, Netflix, Facebook, etc.) still looming large, CFO/strategy chief Sajid Malhotra talked up the value of Limelight's CDN. "[W]e operate on a global basis, one of the largest content delivery networks, one of the largest SSL CDNs, one of the largest IPV6 networks ... At almost 50 petabytes, we have one of the broadest cloud storage deployments in the world ... We have unique capabilities that differentiate us from our competitors like the ability to purge files in near real-time and we back this with our SLA and don’t just provide it on a best effort basis."
Regarding the Akamai suit, CEO Robert Lento insisted Limelight will "continue to vigorously defend against Akamai’s claims in the 703 patent case," in spite of recent setbacks. Limelight has asked a Massachusetts federal curt for a stay of all proceedings until a Supreme Court decides whether to hear Limelight's appeal.
Akamai is also up sharply post-earnings today, after having delivered a Q4 beat and in-line Q1 guidance.