Limelight Networks'
Although Limelight's disappointing results and lower-than-expected third-quarter revenue forecast weighed on its shares, its performance was more or less in line with a growing trend in the content delivery network services industry. Peer Akamai Technologies
Here's what you need to know about Limelight's quarter.
A look at the numbers
Revenues for the quarter increased to $50.5 million from $42.2 million, up 20% on a year-over-year basis. Revenues fell below analyst estimates as a result of lower campaign volume on its EyeWonder rich media advertising platform and a fall in content delivery network traffic for its two largest customers. It is looking to bring in new products in its rich media business by next year to help boost revenue growth, so this trend may continue for some time yet.
Operating expenses rose 11% to $32.4 million from $29.2 million. This was in part due to a 39% increase in selling general and administrative expenses, as well as an 81% surge in research and development-related costs. This resulted in the quarterly loss zooming to $13.9 million, compared with a loss of $2.3 million last year.
The Foolish bottom line
Limelight has suffered a string of losses recently, and it needs to somehow reverse this trend. Recently, Dan Rayburn speculated that Goldman Sachs
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