Limelight Networks, Inc. Earnings Cheat Sheet: Double-Digit Revenue Growth Continues

Limelight Networks, Inc.’s (NASDAQ:LLNW) loss widened in the second quarter, as the company’s results were dragged down by higher costs. The Company is a provider of high-performance content delivery network services.

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Limelight Networks Earnings Cheat Sheet for the Second Quarter

Results: Loss widened to $13.9 million (12 cents per diluted share) from $2.3 million (loss of 2 cents per share) in the same quarter a year earlier.

Revenue: Rose 19.8% to $50.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LLNW reported an adjusted net loss of 5 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 9 cents per share. It fell short of the average revenue estimate of $52.4 million.

Quoting Management: “We were pleased with our progress in the quarter on our strategic initiatives of growing Limelight’s value-added services, which are now 40% of overall revenue. We believe growing this portion of our business, which is comprised primarily of Software-as-a-Service (NASDAQ:SAAS) offerings, will help improve our overall visibility, deepen relationships with customers, and create sustainable value over the long-term,” said Jeff Lunsford, chairman and chief executive officer.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 41.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 64.3% from the year earlier quarter.

Gross margin shrank 6.6 percentage points to 37%. The contraction appeared to be driven by increased costs, which rose 33.7% from the year earlier quarter while revenue rose 19.8%.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with a loss of -8 cents versus a mean estimate of a loss of 10 cents per share.

Competitors to Watch: Akamai Technologies, Inc. (NASDAQ:AKAM), InterNAP Network Services (NASDAQ:INAP), Adobe Systems Incorporated (NASDAQ:ADBE), Rackspace Hosting, Inc. (NYSE:RAX), Microsoft Corporation (NASDAQ:MSFT), The Walt Disney Company (NYSE:DIS), RealNetworks, Inc. (NASDAQ:RNWK), Equinix, Inc. (NASDAQ:EQIX), and SAVVIS, Inc. (NASDAQ:SVVS).

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(Source: Xignite Financials)