Nov. 10, 2014, 5:36 PM
Nov. 10, 2014, 4:22 PM| Comment!
Oct. 16, 2014, 1:41 PM
- Stating checks indicate Akamai's (AKAM -2.2%) media traffic has dropped in October, Wells Fargo has downgraded the CDN leader to Market Perform, and cut its valuation range to $57-$61 from $70-$75.
- Wells is also worried about the impact of a strong dollar on Akamai's foreign sales. eBay disclosed yesterday forex is taking a toll on its 2H14 performance.
- Akamai was hit earlier this year by news major customer Apple is following Netflix's lead by building its own CDN; the CDN went live this summer. The company has made cutting its dependence on low-margin media delivery sales a priority.
- Rival Limelight (LLNW -2.5%), more dependent on media delivery than Akamai, is also off. Akamai's Q3 report is due on July 30.
Jun. 16, 2014, 10:04 AM
- P-E firm Tuition Build has offered to buy Limelight (LLNW) for $644.7M, or $6.55/share - a 131% premium to Friday's close.
- However, Limelight says it has "concluded that Tuition Build does not have the experience, credentials, financial resources, or capability to complete the proposed transaction," and that investors should "disregard" the offer.
- Limelight has been posting Y/Y revenue declines and losses amid softer demand from Netflix, which has been busy building its own CDN. Tuition Build's offer comes as Limelight rival Level 3 announces a $7.3B deal to buy TW Telecom.
Jun. 16, 2014, 9:15 AM
Mar. 19, 2014, 2:41 PM
Feb. 13, 2014, 4:57 PM
- In addition to posting mixed Q4 results, Limelight (LLNW) has authorized a $15M buyback, good for repurchasing 6% of shares at current levels. The CDN owner had $118.5M ($1.22/share) in cash at the end of 2013 to finance its buyback efforts.
- Q4 gross margin rose 50 bps Y/Y to $36.2M. While revenue declined 9% Y/Y, opex fell 4% to $24.5M.
- Q4 results, PR
Aug. 21, 2013, 11:34 AM
- Robert Lento, who only became Limelight's (LLNW +2.5%) permanent CEO in January, bought 25K shares yesterday at $1.97. (Form 4)
- The purchase comes with shares of the CDN owner, struggling with price pressure, tough competition from Akamai/Level 3, and Netflix's efforts to migrate traffic to its own CDN, trading well below late-2010/early 2011 levels.
- Previous: Limelight tumbles on Q2 miss
Aug. 8, 2013, 10:13 AM
- 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
Aug. 7, 2013, 4:23 PM| Comment!
May. 28, 2013, 12:00 PMLimelight (LLNW +6.3%) "is in talks to try and sell the company to Verizon (VZ) and is desperate to make a deal," Dan Rayburn reports hearing from "multiple attendees from Wall Street" at a conference he hosted. With Limelight burning cash and facing tough competition from Akamai (AKAM) and Level 3 (LVLT), there's logic to exploring a sale. Rayburn points out Limelight's management changes and Verizon's interest in growing its CDN business could lead to a deal. However, he adds Limelight has been seeing employee defections, and has heard Limelight customers criticize the "poor performance" of its CDN. Private XO Communications is also said to be talking with Limelight. | 2 Comments
Feb. 20, 2013, 10:07 AMTwo weeks after Akamai plunged in response to its Q4 report, Limelight (LLNW -10.1%) is doing the same. The CDN owner didn't provide formal guidance to go with its mixed Q4 results, it but did note on the earnings call it expects Q4 to again be its "seasonally strongest quarter." With the Street expecting roughly flat Q/Q revenue growth, that might not be going over well. New CEO Robert Lento also forecasts opex will rise Q/Q thanks to sales spending, and that R&D will rise as a % of sales in 2013. | Comment!
Feb. 20, 2013, 10:02 AM
Feb. 7, 2013, 5:45 PM
Feb. 7, 2013, 1:38 PMAkamai (AKAM -15.6%) may have lost CDN video customers to Level 3 (LVLT) due to price competition, thinks Oppenheimer after the company partly blamed its light Q1 guidance on a decision to abandon low-margin media contracts. Akamai has long been trying to stand out from rivals by focusing on higher-margin services in areas such as cloud apps, e-commerce, security, and ad delivery, and new CEO Tom Leighton made it clear in the earnings call he wants to double down, both by giving up on low-margin deals and ramping sales/R&D investments. LLNW -5%. | Comment!
Feb. 6, 2013, 5:21 PMAkamai (AKAM) guides on its Q4 call for Q1 revenue of $352M-$362M and EPS of $0.50-$0.52; the latter is above a consensus of $0.47, but the former is below a consensus of $370.7M. Akamai blames the top-line guidance on a decision to wind down certain low-margin media delivery contracts, as well as the sale of its ad targeting business and forex. Q4 EPS received a $0.04 boost from a tax rate change, and Q1 EPS is expected to benefit from tax rates and an extended depreciation cycle for servers (400 bps gross margin boost). Shares -15.9% AH. LLNW is likely to fall in sympathy. | Comment!
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Limelight Networks, Inc., operates a computing platform. The Company provides services including content delivery services, video content management services, performance services for website and web application acceleration, and cloud storage services.
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