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Limelight Networks, Inc. (LLNW)

  • Fri, May 1, 5:57 PM
    • Limelight (NASDAQ:LLNW) rallied to fresh 52-week highs today after beating Q1 estimates and hiking its full-year revenue guidance to $164M-$170M from $156M-$164M (consensus was $161.9M). Q2 revenue guidance of $40M-$42M is above a $39.3M consensus, and full-year EPS guidance of -$0.08 to -$0.18 is mostly above a -$0.17 consensus.
    • On its CC (transcript), the CDN owner stated it saw record traffic for the second quarter in a row, after seeing a major 2013/2014 drop caused by declining Netflix demand. Average revenue from top-20 customers (56% of total revenue) is said to be still growing at a "healthy double-digit rate." Price declines are said to be "in-line with [Limelight's] historical averages.
    • Lifting EPS: Gross margin rose 190 bps to 39%. GAAP operating expenses rose 9% to $24M. Netflix revenue totaled $4.9M (12% of total revenue).
    • Q1 results, PR
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  • Fri, May 1, 9:13 AM
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  • Mon, Apr. 20, 3:12 PM
    • With the Nasdaq up 1.3%, many tech companies are posting big gains, and only a few are seeing major losses.
    • Notable gainers include audio codec chipmaker Cirrus Logic (CRUS +4%), gaming headset maker Turtle Beach (HEAR +11.4%), video processor developer Pixelworks (PXLW +6%), U.S. solar installer Vivint (VSLR +5.4%), CDN owner Limelight (LLNW +5.9%), cloud revenue management software firm ServiceSource (SREV +4.9%), language software firm Rosetta Stone (RST +4.6%), and storage hardware maker Quantum (QTM +5.3%).
    • Notable decliners include craft goods marketplace/recent IPO Etsy (ETSY -8%) and touch sensor developer UniPixel (UNXL -12.2%).
    • Cirrus, a major beneficiary of strong iPhone 6 sales, has made fresh 52-week highs; the company reports on April 28, a day after Apple. Beaten-down Turtle Beach is up 52% from an early April low of $1.85; new executive hires and product launches might be helping. Quantum (also making new 52-week highs) is up 38% since pre-announcing strong March quarter sales on April 9. Pixelworks reports on April 30.
    • Etsy is now down 18% from last Thursday's post-IPO opening trade of $31.00, as investors balance strong growth and a fervently loyal user base with steep multiples; shares are still up 60% from their $16 IPO price. Likewise, UniPixel is down 18% since announcing a deal to buy Atmel's XSense touch sensor assets on Friday morning.
    • Previously covered: Microsoft, Manhattan Associates, Ascent Solar, Check Point/FireEye, Rovi, FARO Technologies
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  • Wed, Mar. 4, 3:01 PM
    • Today's notable tech gainers include Chinese online classifieds leader (WUBA +5.9%), CDN owner Limelight (LLNW +6.5%), account-protection software provider CyberArk (CYBR +3.2%), flash storage array vendor Violin Memory (VMEM +3.8%), online video ad platform Tremor Video (TRMR +4%), and Chinese mobile game publisher Sky-mobi (MOBI +11.9%).
    • Notable decliners include cloud HR/financials software leader Workday (WDAY -5.8%), systems management software vendor SolarWinds (SWI -3.8%), chip packaging IP firm Tessera (TSRA -4.3%), security hardware/software provider KEYW Holding (KEYW -3.7%), and Chinese online real estate play E-House (EJ -4%). The Nasdaq is down 0.2%.
    • Sky-mobi has flown higher since Rosenblatt Securities pounded the table for the company last week. Workday has fallen sharply since last week's FQ4 revenue beat. E-House has gradually declined this week since announced the purchase of Chinese real estate site Anjuke.
    • Previously covered: Neustar, AeroVironment, Alibaba, SanDisk, Autohome/Bitauto, ReneSola, Trina, Ambarella/GoPro, Bazaarvoice, Veeva
  • Mon, Feb. 2, 4:59 PM
    • Limelight (NASDAQ:LLNW) is guiding for 2015 revenue of $156M-$164M and EPS of -$0.10 to -$0.20, above a consensus of $153.9M and -$0.21.
    • Q4 gross margin was 39.6%, down from 41.4% in Q3 but up from 36.2% a year ago. Operating expenses fell 2% Q/Q and 10% Y/Y to $22M.
    • $2M was spent on buybacks at an average price of $2.83. The CDN owner ended Q4 with $93.1M in cash/marketable securities (equal to nearly 1/3 of its current market cap), and no debt.
    • Shares are at $2.90 in AH trading.
    • Q4 results, PR
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  • Nov. 10, 2014, 5:36 PM
    • Top gainers, as of 5:15 p.m.: MODN +19.8%. LLNW +12.4%. KRG +10.0%. DTSI +8.1%. SSE +7.4%.
    • Top losers, as of 5:15 p.m.: CALL -15.2%. HALO -9.9%. VSLR -9.7%. CMLS -8.5%. W -7.5%.
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  • Nov. 10, 2014, 4:22 PM
    • Limelight Networks (NASDAQ:LLNW): Q3 EPS of -$0.02 beats by $0.04.
    • Revenue of $39M (-8.6% Y/Y) beats by $1.87M.
    • Shares +8%.
    • Press Release
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  • 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.
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  • 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.
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  • Jun. 16, 2014, 9:15 AM
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  • 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
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  • 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
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  • 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
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  • Aug. 7, 2013, 4:23 PM
    • Limelight Networks (LLNW): Q2 EPS of -$0.07 misses by $0.02.
    • Revenue of $42.76M misses by $3.17M. Shares +2.1% AH. (PR)
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  • May 28, 2013, 12:00 PM
    Limelight (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.
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Company Description
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.
Sector: Services
Country: United States