1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (175) 

Limelight's Growth Fueled by the Content Delivery Network

November 10, 2014 | About:

CDN (Content delivery network) has been one of the leading and most researched technologies in various industries. Market research companies and analysts anticipate the CDN market to reach $12.16 billion by 2019. Many industries are now focused on this growth-oriented business.

Limelight Networks (NASDAQ:LLNW) is one such company which has been gaining attention from various investors as it has been steadily increasing its footprints globally. The company is enriched with intellectual properties and has more than 100 U.S patents under the domain of content delivery network. The quality of services provided by Limelight is being appreciated by its global customers. The need for speed has been the prime concern for internet users that provides higher stability and availability, Limelight Networks fulfils this need of customers as it provides a high availability network with unmatched data transfer speed over internet. Limelight’s customers have been constantly growing and this is exemplified as we see a constant revenue growth.

Impressive Quarter

The company recently released its Q2 results for the fiscal 2014 and was quite impressive considering its past performance and disinvestment of the web content management system. The company reported consolidated revenue of $41.3 million as compared to $42.8 million in the same quarter last year. The revenue might be down by $1.5 million but in the same quarter last year $3.1 million was contributed by the web content management business that was disinvested in the Q4-2013.

The bottom line is also improving as the net loss is reducing for the company. In Q2-2014 it reported a net loss of $3.6 million, or $0.04 per basic share as compared to a net loss of $7.2 million or $0.07 per basic share in same term last year. The liabilities of the company has also reduced from $30,967 to $30,351 in the second quarter, resulting in posting a healthier bottom line. Operating expense of the company has also reduced; this further influenced the bottom line of the company.

Investors safeguarded

Share repurchases programs always safeguards the investment of an investor making them feel more secured. Buy back also helps in posting a stronger EPS of the shares as the shares outstanding is reduced after every buyback programs. In second quarter of the fiscal, Limelight repurchased $0.5 million shares as the average price of $2.47. Furthermore under the current share repurchase program, the company plans to purchase shares worth $13.8 million.

Higher performance can leverage further growth

The company has benchmarked to provide high speed data transfer that recorded more than 4TB per second of speed in the live streaming coverage of World Cup games. Many of the big leading companies are going to hire limelight networks as they believe in order to deliver a world class digital experience to their fans worldwide. This kind of opportunities is going to enhance the working and financial result of future quarters.


The company is very optimistic about its performance in the current fiscal year; this is exemplified as it has further raised the full year guidance for the revenue. The company now anticipates total revenue to be in the range of $155 million to $159 million in the current fiscal, up from the previous guidance of $152 million to $158 million.


The company is working toward improving customer experience, and planning to make investments in order to advance the infrastructure capabilities. Its competitors are getting a tough fight from all the avenues like sales, revenue and profit. Previously they incurred many huge losses which eventually reduced by the adoption of new strategies.

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by shash63

User Generated Screeners

pascal.van.garsseHigh FCF-M2
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)