Limelight Networks Inc. First Quarter Earnings Sneak Peek

Limelight Networks, Inc. (NASDAQ:LLNW) will unveil its latest earnings on Thursday, May 3, 2012. Limelight Networks is a provider of high-performance content delivery network services.

Limelight Networks, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 9 cents per share, a wider loss from the year-earlier quarter net loss of 8 cents. During the past three months, the average estimate has moved down from a loss of 7 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 9 cents during the last month.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net loss of 4 cents per share, and the previous quarter, it had a loss of 5 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 10.9% in revenue from the year-earlier quarter to $44.4 million.

Analyst Ratings: Analysts seem relatively indifferent about Limelight Networks with seven of 10 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, the company’s loss widened to a loss of a $6.6 million (6 cents a share) from a loss of $6.3 million (7 cents) a year earlier, but beat analyst expectations. Revenue fell 16.8% to $46 million from $55.2 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 15% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.

The company’s gross margin shrank by 5.9 percentage points in the in the fourth quarter of the last fiscal year. Revenue fell 16.8% while cost of sales fell 7.7% to $27.7 million from a year earlier.

Stock Price Performance: Between March 1, 2012 and April 27, 2012, the stock price had fallen 89 cents (-23.7%), from $3.76 to $2.87. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 9, 2012, when shares rose for six straight days, increasing 23.1% (+77 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 22% (-71 cents) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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