Feb. 4, 2014, 5:30 PM
Feb. 3, 2014, 10:23 AM
- Dan Rayburn reports Apple, which has heavily relied on Akamai's (AKAM -3.2%) CDN to deliver apps, services, and iTunes content to its customers, is building its own CDN.
- Rayburn states details remain scant about which services and regions will be covered by Apple's CDN, which is still in the build-out stage. However, he does note Apple has hired networking vets who "have a deep background in building out large-scale networks," and that it's "widely known that Apple spent more than $100M with Akamai last year."
- Akamai, which posts Q4 results on Wednesday, mentioned on its Q3 CC it's in the midst of price negotiations with a major client that's believed to be Apple. The company has already seen another major client, Netflix, migrate traffic to a home-grown CDN. Both Apple and Netflix have relied on Akamai for relatively low-margin media delivery services.
- Rayburn's report is overshadowing a bullish weekend Barron's write-up that calls Akamai "the WD-40 of the Internet," and praised the company's healthy margins, security services potential, and ability to benefit from further Internet traffic growth.
- Level 3 (LVLT -1.2%) also provides CDN services to Apple.
Dec. 19, 2013, 9:37 AM
- As part of a telecom sector coverage launch, Jefferies has stared Level 3 (LVLT +0.8%), NTELOS (NTLS +1.8%), and Boingo (WIFI +2.1%) at Buy.
- SBA Communications (SBAC +1.3%) has been upgraded to Outperform by Macquarie.
- Rocket Fuel (FUEL +6.9%) has been upgraded to Strong Buy by Needham.
- Demandware (DWRE +4.2%) has been started at Outperform by Barclays.
Nov. 26, 2013, 7:02 AM
- With Google and Yahoo wondering how the National Security Agency was able to eavesdrop on the communications of their members without breaking into the companies' data centers, the suspicion is that the NSA tapped the fiber-optic cables that connect those centers.
- Level 3 Communications (LVLT) has reportedly been a particular focus of concern - the company is the world's largest Internet backbone provider, and Google and Yahoo use its infrastructure.
- Other carriers include Verizon, BT Group and Vodafone.
- For some reason, the data that was sent along the cables was unencrypted, although Yahoo and Google do now secure the information. Microsoft is considering similar action.
Nov. 25, 2013, 12:09 PM
- Walter Scott, 82, will step down as Level 3's (LVLT +0.7%) chairman following the company's May 2014 annual meeting. James Ellis, a director and former U.S. Navy Admiral, will replace him. (PR)
- Scott, a friend of Warren Buffett, has been Level 3's chairman since 1979, dating back to its years as a part of contractor Peter Kiewit.
Oct. 30, 2013, 8:07 AM
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Sep. 20, 2013, 9:53 AM
- Facebook (FB +0.7%) has been upgraded to Outperform by Cowen. The upgrade comes with shares having risen 73% since the Q2 report.
- Tibco (TIBX +4.6%) and Informatica (INFA +4.3%), two companies frequently hyped as big data/analytics plays, have been upgraded to Positive by Susquehanna. Tibco delivered an FQ3 beat and provided in-line FQ4 guidance yesterday afternoon.
- SunEdison (SUNE +2.5%) has been upgraded to Outperform by RBC.
- Portugal Telecom (PT +4.8%) has been upgraded to Outperform by Bernstein.
- Synaptics (SYNA +2.1%) has been upgraded to Outperform by Oppenheimer.
- NetApp (NTAP -1%) has been cut to Underperform by William Blair.
- SolarWinds (SWI -4.4%) has been cut to Sell by Goldman.
- Ericsson (ERIC -2.1%) has been cut to Hold by DNB.
- Level 3 (LVLT -1.9%) has been cut to Equal Weight by Morgan Stanley.
- ExOne (XONE -0.3%) has been started at Outperform by FBR.
Sep. 13, 2013, 1:29 PM
- Analyst Donna Jaegers has raised her Level 3 (LVLT +1.7%) PT to $25.50 from $23.50 following news of the company's plans to cut nearly 700 jobs (6.5% of its workforce).
- Jaegers estimates the job cuts will yield $45M-$50M/year in SG&A savings.
- Shares have gradually rallied this summer after slumping this spring, and are close to their 52-week high of $26.17.
Aug. 30, 2013, 10:57 AM
- Level 3 Communications (LVLT +0.5%) will cut 700 jobs as it tries to trim costs and reach profitability for the first time in 15 years as a publicly traded company.
- The cuts equal 6.6% of LVLT's global workforce of 10,600.
- Wells Fargo analysts say the move is part of new CEO Jeff Storey's drive to improve efficiency; the firm says Storey has the right strategy, but it will take time to implement the changes and see benefits in LVLT's financial results.
Aug. 16, 2013, 10:01 AM
- A $595.5M 2016 Tranche B term loan with an interest rate of LIBOR + 3.25% and a minimum LIBOR of 1.5% is being replaced by a $595.5M 2020 Tranche B term loan with an interest rate of LIBOR + 3% and a minimum LIBOR of 1%. Level 3 estimates $4.5M/year in interest expense savings.
- On Monday, Level 3 (LVLT -0.2%) announced it has refinanced an $815M term loan. A 2019 Tranche B-III term loan with an interest rate of LIBOR + 3.75% and a minimum LIBOR of 1.5% is being replaced by a Tranche B-III of similar size and maturity, but which sports an interest rate of LIBOR + 3% and a minimum LIBOR of 1%. $10M/year in interest savings are expected.
- Level 3 (market cap of $5B) had $8.54B in debt on its balance sheet as of June 30, and $603M in cash.
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
Jul. 31, 2013, 8:14 AM
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