NETWORKS

Limelight Networks has reported second quarter 2010 financial results. Highlights included:

• Record revenue of $42.2 million
• Continued expansion of value-added services, now 28% of revenue:
• Mobile revenue growth exceeded 40% sequentially
• Enterprise web site acceleration revenue growth exceeded 50% sequentially
• Professional services growth exceeded 75% year-over-year
• Expanded solution set to include rich media advertising solutions with the completion of EyeWonder acquisition.
• Continued strategic expansion of solution set to include cloud-based video publishing and analytics services, with acquisition of Delve Networks after close of quarter.
• GAAP gross margin of 44% and cash gross margin of 58%

"We are pleased with Limelight Networks' second quarter results. We have designed and deployed a globally distributed, high-performance computing platform which supports an exciting and growing content delivery business. We have built and acquired, and are now offering innovative solutions that run on this platform and address multiple complementary growth sectors. These solutions position Limelight Networks to benefit from three undeniable macro trends that we believe will fuel our growth for the foreseeable future -- the shift of content consumption and advertising dollars online, explosive growth of mobile devices and mobile content consumption, and the shift of software applications and other IT services into the cloud," said Jeff Lunsford, chairman and chief executive officer.

Financial Highlights

For the second quarter of 2010, the company reported revenue of $42.2 million, up 31 percent from second quarter 2009 and up 17 percent sequentially. The company also reported EBITDA, adjusted for share-based compensation, litigation expenses, and acquisition-related expenses, of $5.6 million and a non-GAAP net income, before share-based compensation, litigation expenses, amortization of intangible assets, and acquisition-related expenses, of $4.9 million or 5 cents per share on a fully diluted basis. GAAP net loss was $2.3 million, or 2 cents per basic share.

Capital investments were $9.5 million. The Company ended the quarter with no bank debt and approximately $83 million in cash and short-term marketable securities.