Company Quick10K Filing
Limelight Networks
Price3.04 EPS-0
Shares117 P/E-15
MCap354 P/FCF-52
Net Debt-15 EBIT-23
TEV339 TEV/EBIT-15
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-20
10-Q 2020-03-31 Filed 2020-04-24
10-K 2019-12-31 Filed 2020-01-30
10-Q 2019-09-30 Filed 2019-10-17
10-Q 2019-06-30 Filed 2019-07-18
10-Q 2019-03-31 Filed 2019-04-18
10-K 2018-12-31 Filed 2019-02-01
10-Q 2018-09-30 Filed 2018-10-19
10-Q 2018-06-30 Filed 2018-07-20
10-Q 2018-03-31 Filed 2018-04-20
10-K 2017-12-31 Filed 2018-02-08
10-Q 2017-09-30 Filed 2017-10-19
10-Q 2017-06-30 Filed 2017-07-27
10-Q 2017-03-31 Filed 2017-04-25
10-K 2016-12-31 Filed 2017-02-17
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-04-28
10-K 2015-12-31 Filed 2016-02-11
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-05-01
10-K 2014-12-31 Filed 2015-02-17
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-05
10-Q 2014-03-31 Filed 2014-05-07
10-K 2013-12-31 Filed 2014-02-20
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-01
10-Q 2012-09-30 Filed 2012-11-05
10-Q 2012-06-30 Filed 2012-08-07
10-Q 2012-03-31 Filed 2012-05-08
10-K 2011-12-31 Filed 2012-03-02
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-03-11
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-12
8-K 2020-09-03 Officers
8-K 2020-07-22 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2020-07-22 Enter Agreement, Off-BS Arrangement, Sale of Shares, Exhibits
8-K 2020-07-20 Earnings, Exhibits
8-K 2020-07-02 Officers
8-K 2020-06-05
8-K 2020-04-23
8-K 2020-02-06
8-K 2020-01-29
8-K 2019-12-10
8-K 2019-11-12
8-K 2019-10-16
8-K 2019-09-24
8-K 2019-09-23
8-K 2019-09-16
8-K 2019-07-17
8-K 2019-05-02
8-K 2019-04-17
8-K 2019-02-01
8-K 2019-01-30
8-K 2018-12-12
8-K 2018-11-20
8-K 2018-11-19
8-K 2018-11-16
8-K 2018-11-12
8-K 2018-10-18
8-K 2018-07-19
8-K 2018-06-07
8-K 2018-04-19
8-K 2018-04-02
8-K 2018-03-21
8-K 2018-03-01
8-K 2018-02-07
8-K 2018-02-06

LLNW 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 danboncelemploymentagr.htm
EX-31.1 llnw-6302020xex311.htm
EX-31.2 llnw-6302020xex312.htm
EX-32.1 llnw-6302020xex321.htm
EX-32.2 llnw-6302020xex322.htm

Limelight Networks Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
3052441831226102012201420172020
Assets, Equity
55329-14-37-602012201420172020
Rev, G Profit, Net Income
603816-6-28-502012201420172020
Ops, Inv, Fin

llnw-20200630
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from                          to                         
Commission file number 001-33508
 
Limelight Networks, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware20-1677033
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1465 North Scottsdale Road, Suite 400
Scottsdale, AZ 85257
(Address of principal executive offices, including Zip Code)
(602850-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act;
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareLLNWNasdaq
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No  
The number of shares outstanding of the registrant’s Common Stock, par value $0.001 per share, as of July 13, 2020: 122,072,457 shares.


Table of Contents
LIMELIGHT NETWORKS, INC.
FORM 10-Q
Quarterly Period Ended June 30, 2020
TABLE OF CONTENTS
  Page
PART I. FINANCIAL INFORMATION
Item 1.FINANCIAL STATEMENTS
Consolidated Balance Sheets as of June 30, 2020 (Unaudited) and December 31, 2019
Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2020 and 2019
Unaudited Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2020 and 2019
Unaudited Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2020 and 2019
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019
Notes to Unaudited Consolidated Financial Statements
Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 4.CONTROLS AND PROCEDURES
PART II. OTHER INFORMATION
Item 1.LEGAL PROCEEDINGS
Item 1A.RISK FACTORS
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Item 3.DEFAULTS UPON SENIOR SECURITIES
Item 4.MINE SAFETY DISCLOSURES
Item 5.OTHER INFORMATION
Item 6.EXHIBITS
SIGNATURES
 


Table of Contents
Special Note Regarding Forward-Looking Statement
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements contained in this Quarterly Report on Form 10-Q, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the words “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events, as well as trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These statements include, among other things:
our beliefs regarding delivery traffic growth trends and demand for digital content and edge services;
our expectations regarding revenue, costs, expenses, gross margin, non-GAAP earnings per share, Adjusted EBITDA and capital expenditures;
our plans regarding investing in our content delivery network, as well as other products and technologies;
our beliefs regarding the growth of, and competition within, the content delivery industry;
our beliefs regarding the growth of our business and how that impacts our liquidity and capital resources requirements;
our expectations regarding headcount;
the impact of certain new accounting standards and guidance as well as the time and cost of continued compliance with existing rules and standards;
our plans with respect to investments in marketable securities;
our expectations and strategies regarding acquisitions;
our estimations regarding taxes and belief regarding our tax reserves;
our beliefs regarding the use of Non-GAAP financial measures;
our approach to identifying, attracting and keeping new and existing customers, as well as our expectations regarding customer turnover;
the sufficiency of and our sources of funding;
our beliefs regarding our interest rate risk;
our beliefs regarding inflation risks;
our beliefs regarding expense and productivity of and competition for our sales force;
our beliefs regarding the significance of our large customers;
our beliefs regarding the impact of health epidemics and pandemics, including the recent outbreak of COVID-19, on our current and potential customers; and
our beliefs regarding the impact of health epidemics and pandemics, including the recent outbreak of COVID-19, on our balance sheet, financial condition, and results of operations.
        The risks included here are not exhaustive. Other sections of this Quarterly Report on Form 10-Q may include additional factors which could adversely affect our business and financial performance. Also, these forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the caption “Risk Factors” in Part II, Item 1A in this Quarterly Report on Form 10-Q and those discussed in other documents we file with the Securities and Exchange Commission (SEC).
In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
The forward-looking statements contained herein are based on our current expectations and assumptions and on information available as of the date of the filing of this Quarterly Report on Form 10-Q. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Unless expressly indicated or the context requires otherwise, the terms "Limelight," "we," "us," and "our" in this document refer to Limelight Networks, Inc., a Delaware corporation, and, where appropriate, its wholly owned subsidiaries. All information is presented in thousands, except per share amounts, customer count, headcount and where specifically noted.



Table of Contents
PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements
Limelight Networks, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
June 30,
2020
December 31,
2019
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$18,200  $18,335  
Accounts receivable, net45,246  34,476  
Income taxes receivable68  82  
Prepaid expenses and other current assets10,241  9,920  
Total current assets73,755  62,813  
Property and equipment, net48,908  46,136  
Operating lease right of use assets11,449  12,842  
Marketable securities, less current portion40  40  
Deferred income taxes1,328  1,319  
Goodwill77,113  77,102  
Other assets7,915  9,117  
Total assets$220,508  $209,369  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$17,004  $12,020  
Deferred revenue934  976  
Operating lease liability obligations2,390  2,056  
Income taxes payable169  178  
Other current liabilities17,028  13,398  
Total current liabilities37,525  28,628  
Operating lease liability obligations, less current portion12,316  13,488  
Deferred income taxes283  239  
Deferred revenue, less current portion265  161  
Other long-term liabilities304  316  
Total liabilities50,693  42,832  
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued
  and outstanding
    
Common stock, $0.001 par value; 300,000 shares authorized; 121,692 and 118,368 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
122  118  
Additional paid-in capital541,363  530,285  
Accumulated other comprehensive loss(10,031) (9,210) 
Accumulated deficit(361,639) (354,656) 
Total stockholders’ equity169,815  166,537  
Total liabilities and stockholders’ equity$220,508  $209,369  
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Limelight Networks, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Revenue$58,546  $45,904  $115,558  $89,184  
Cost of revenue:
Cost of services29,389  22,769  60,502  45,710  
Depreciation — network5,360  4,628  10,510  8,944  
Total cost of revenue34,749  27,397  71,012  54,654  
Gross profit23,797  18,507  44,546  34,530  
Operating expenses:
General and administrative8,187  8,340  16,069  15,875  
Sales and marketing10,929  10,994  22,823  21,966  
Research and development5,572  6,013  11,189  11,915  
Depreciation and amortization323  127  665  372  
Total operating expenses25,011  25,474  50,746  50,128  
Operating loss(1,214) (6,967) (6,200) (15,598) 
Other income (expense):
Interest expense(71) (10) (82) (20) 
Interest income6  110  31  321  
Other, net(312) (70) (421) (76) 
Total other (expense) income (377) 30  (472) 225  
Loss before income taxes(1,591) (6,937) (6,672) (15,373) 
Income tax expense 136  255  311  378  
Net loss$(1,727) $(7,192) $(6,983) $(15,751) 
Net loss per share:
Basic$(0.01) $(0.06) $(0.06) $(0.14) 
Diluted$(0.01) $(0.06) $(0.06) $(0.14) 
Weighted average shares used in per share calculation:
Basic120,230  115,275  119,597  114,843  
Diluted120,230  115,275  119,597  114,843  

The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Limelight Networks, Inc.
Unaudited Consolidated Statements of Comprehensive Loss
(In thousands)
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Net loss$(1,727) $(7,192) $(6,983) $(15,751) 
Other comprehensive income (loss), net of tax:
Unrealized gain on investments  8    37  
Foreign currency translation (loss) gain518  166  (821) 513  
Other comprehensive income (loss)518  174  (821) 550  
Comprehensive loss$(1,209) $(7,018) $(7,804) $(15,201) 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Limelight Networks, Inc.
Unaudited Consolidated Statements of Stockholders' Equity
(In thousands)
For the Three Months Ended June 30, 2020
Common Stock
SharesAmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
Balance March 31, 2020119,642  $120  $534,205  $(10,549) $(359,912) $163,864  
Net loss—  —  —  —  (1,727) (1,727) 
Foreign currency translation adjustment, net of taxes—  —  —  518  —  518  
Exercise of common stock options1,162  1  2,871  —  —  2,872  
Vesting of restricted stock units869  1  6  —  —  7  
Restricted stock units surrendered in lieu of withholding taxes(281) —  (1,430) —  —  (1,430) 
Issuance of common stock under employee stock purchase plan300  —  1,074  —  —  1,074  
Share-based compensation—  —  4,637  —  —  4,637  
Balance June 30, 2020121,692  $122  $541,363  $(10,031) $(361,639) $169,815  

For the Three Months Ended June 30, 2019
Common Stock
SharesAmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
Balance March 31, 2019114,874  $115  $516,251  $(9,657) $(347,171) $159,538  
Net loss—  —  —  —  (7,192) (7,192) 
Change in unrealized loss on available-for-sale investments, net of taxes—  —  —  8  —  8  
Foreign currency translation adjustment, net of taxes—  —  —  166  —  166  
Vesting of restricted stock units638  1  (1) —  —    
Restricted stock units surrendered in lieu of withholding taxes(201) —  (619) —  —  (619) 
Issuance of common stock under employee stock purchase plan449  —  1,095  —  —  1,095  
Share-based compensation—  —  3,649  —  —  3,649  
Balance June 30, 2019115,760  $116  $520,375  $(9,483) $(354,363) $156,645  






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For the Six Months Ended June 30, 2020
Common Stock
SharesAmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
Balance December 31, 2019118,368  $118  $530,285  $(9,210) $(354,656) $166,537  
Net loss—  —  —  —  (6,983) (6,983) 
Foreign currency translation adjustment, net of taxes—  —  —  (821) —  (821) 
Exercise of common stock options1,860  2  5,009  —  —  5,011  
Vesting of restricted stock units1,745  2  5  —  —  7  
Restricted stock units surrendered in lieu of withholding taxes(581) —  (2,945) —  —  (2,945) 
Issuance of common stock under employee stock purchase plan300  —  1,074  —  —  1,074  
Share-based compensation—  —  7,935  —  —  7,935  
Balance June 30, 2020121,692  $122  $541,363  $(10,031) $(361,639) $169,815  

For the Six Months Ended June 30, 2019
Common Stock
SharesAmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
Balance December 31, 2018114,246  114  513,682  (10,033) (338,612) 165,151  
Net loss—  —  —  —  (15,751) (15,751) 
Change in unrealized loss on available-for-sale investments, net of taxes—  —  —  37  —  37  
Foreign currency translation adjustment, net of taxes—  —  —  513  —  513  
Exercise of common stock options5  —  8  —  —  8  
Vesting of restricted stock units1,566  2  (2) —  —    
Restricted stock units surrendered in lieu of withholding taxes(506) —  (1,513) —  —  (1,513) 
Issuance of common stock under employee stock purchase plan449  —  1,095  —  —  1,095  
Share-based compensation—  —  7,105  —  —  7,105  
Balance June 30, 2019115,760  116  520,375  (9,483) (354,363) 156,645  

The accompanying notes are an integral part of the unaudited consolidated financial statements.


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Limelight Networks, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
 Six Months Ended June 30,
 20202019
Operating activities
Net loss$(6,983) $(15,751) 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization11,175  9,316  
Share-based compensation10,315  7,105  
Foreign currency remeasurement gain(140) (125) 
Deferred income taxes15  31  
Gain on sale of property and equipment  (51) 
Accounts receivable charges313  694  
Amortization of premium on marketable securities  20  
Changes in operating assets and liabilities:
Accounts receivable(11,083) (5,751) 
Prepaid expenses and other current assets(447) 108  
Income taxes receivable13  (2) 
Other assets1,747  (3,422) 
Accounts payable and other current liabilities6,937  6,473  
Deferred revenue63  (445) 
Income taxes payable2  143  
Payments related to litigation, net  (3,040) 
Other long term liabilities(11) (152) 
Net cash provided by (used in) operating activities 11,916  (4,849) 
Investing activities
Purchases of marketable securities  (10,279) 
Sale and maturities of marketable securities  31,153  
Purchases of property and equipment(14,948) (16,474) 
Proceeds from sale of property and equipment  46  
Net cash used in investing activities (14,948) 4,446  
Financing activities
Payments of employee tax withholdings related to restricted stock vesting(2,945) (1,513) 
Proceeds from employee stock plans6,092  1,103  
Net cash provided by (used in) financing activities3,147  (410) 
Effect of exchange rate changes on cash and cash equivalents(250) 128  
Net decrease in cash and cash equivalents(135) (685) 
Cash and cash equivalents, beginning of period18,335  25,383  
Cash and cash equivalents, end of period$18,200  $24,698  
Supplemental disclosure of cash flow information
Cash paid during the period for interest$82  $20  
Cash paid during the period for income taxes, net of refunds$261  $213  

The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Limelight Networks, Inc.
Notes to Unaudited Consolidated Financial Statements
June 30, 2020
1. Nature of Business
Limelight Networks Inc., a provider of digital content delivery, online video delivery, cloud security, edge computing and cloud storage services, empowers customers to provide exceptional digital experiences. Limelight’s edge services platform includes a globally distributed, high performance private network, intelligent software, and expert support services that enable current and future workflows.
We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2019. All information is presented in thousands, except per share amounts and where specifically noted.