Limelight Networks beats Street's estimates for 4Q on robust sales of new products

Limelight Networks Inc (NASDAQ:LLNW), the cloud service company, beat Wall Street’s estimates for revenue and profit in its fourth quarter as it succeeded in marketing new products and kicked off a strategic partnership with Ericsson.

In its latest quarter, the Tempe, Arizona-based company posted non-GAAP net income of $0.3 million or break-even per share, compared to $3.9 million, or $0.04 per share in the year-ago period. Its revenue, meanwhile, came in at $44 million, down from $48.2 million in the fourth quarter of 2017, with currency negatively impacting the year-over-year comparison by $0.2 million.

READ: Limelight Networks higher 3Q revenue and EPS in line, shares stumble after hours

The results surpassed the expectations of analysts who had called for a loss of $0.01 per share on revenue of $43.73 million.

In a statement, CEO Robert Lento, said business gathered pace at the end of last year.

“As we closed the year, we were increasingly encouraged by the pace of business growth, including delivering all-time record traffic in December,” he said. “In addition, the fourth quarter was marked by substantial progress in marketing our new products, launching a strategic partnership with Ericsson, putting in place new leadership for sales, and dedicating a new leader for our Edge services.”

The company continues to invest in its international expansion, with Latin America set to be a key market, according to Lento.

Limelight provides digital content delivery, video, cloud security and edge computing services.

Limelight shares nudged up by 0.34% to $3.01 in after-hours trade on Wednesday after closing up 4.9% to finish at $3.00.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors