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Investing

Limelight’s (LLNW) Shares Shattered

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By Douglas A. McIntyre Published
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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

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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