Limelight's (LLNW) Shares Shattered
Limelight Networks (LLNW), the content delivery network and Akamai (AKAM) competitor which recently went public is off over 37% in today’s trading. The company traded as high as $24.33 after its IPO and now sits at $8.85.
It must have been the earnings. For the second quarter, Limelight Networks reported revenue of $21.2 million up 43%. Off the small base and in the hot content hosting and delivery industry, Wall St wanted a much bigger jump. LLNW reported a second quarter loss per diluted share of $0.23. The company’s operating loss grew from $4 million to almost $11 million.
Investors also seemed disappointed with guidance which is for revenue to be in the range of $27 to $28 million in the next quarter and in the range of $101 to $103 million for the year. That would be more than poor for a business that did $21 million in the most recent quarter.
The numbers may well show that the anticipated growth of content hosting and streaming is slowing and that the YouTube era did not last very long.
Douglas A. McIntyre