Earnings: Limelight Q1 Revs Up 29 Percent; Still Adding Customers Post-Ruling, But Outlook Flat
This story was written by Joseph Weisenthal.
Limelight (NSDQ: LLNW), the struggling number two in the CDN space, reported Q1 revenues of $30.2 million, a 29 percent year-over-year increase. But the top-line fell short of consensus estimates of $31 million. And the company still isn't making a profit, as it lost $18.4 million or $.22 per share$.05 per share if you exclude ongoing legal costs associated with its patent fight. In addition to the Akamai (NSDQ: AKAM) court fight, Limelight has been dogged by lack of clarity into its business, a young client base and lack of forward visibility. For the current, second quarter, it's predicting revenue of $28-$30 million, so again, potentially no sequential growth.
One positive: It added 183 new customers during the quarter, 40 percent of which came after the Akamai ruling. So evidently, customers are still willing to go with them, despite the patent issue hanging over its head.
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By Joseph Weisenthal