Limelight Networks Inc reports miss on 3Q EPS; shares stumble in afterhours

Limelight Networks Inc (NASDAQ:LLNW) reported a miss in its third quarter earnings on Thursday, although revenue came in slightly higher than expected as steady orders for cloud services gave a mild boost to the company.

The company reported a net loss of $300,000 with earnings per share at break-even, sharply under an EPS of US$0.02 a year ago and the consensus of US$0.03.

Third quarter revenue came in at $49.3 million, about 7% better than $46.1 million in the year-ago period and just slightly up on the consensus of $49.01 million.

The results did not inspire shares of Limelight which dropped 5.5% in the after-hours to $4.80, having settled 2.42% higher on Thursday at $5.08.

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“Pricing discipline and operational efficiencies are driving gains in gross margin and overall profitability,” said Bob Lento, the CEO of Limelight.

He said the focus on new initiatives is yielding results, pointing in particular to the partnership with Chinese technology giant Tencent.

Limelight Networks is a provider of digital content delivery, video, cloud security, and edge computing services.

Limelight’s edge services platform includes a combination of global private infrastructure, intelligent software, and support services that enable current and future workflows.

The company is based in Tempe, Arizona.

Reporting by Rene Pastor, contactable on [email protected]

Story by ProactiveInvestors