With a brand-new second-quarter report on the books, Limelight Networks
Shares of the network services specialist plunged as much as 7.9% on the report. Sales rose 7% year over year to $44.4 million, led by rampant growth in mobile and video presentation services. The content management segment, which is the first business operation that comes to mind when thinking about Limelight, was basically flat year over year. Management is going after business in this market very selectively nowadays, chasing only the most profitable accounts in an effort to preserve profit margins.
The company reported a non-GAAP net loss of $0.05 per share, right in line with analyst expectations. The newfound discipline in Limewire's deal-making puts a lid on management's sales guidance for the next quarter. This company is working hard to become more efficient, but at the cost of looking bad on the top line.
Rival Akamai Technologies
The video delivery service did not suffer from Netflix
Chalk Limewire's market action up to nervous short-term traders this time. The long-term opportunity for efficiency experts remain tremendous, with or without high-volume traffic from the Netflixes of the world.
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Fool contributor Anders Bylund owns shares in Netflix and has also created a bull call options spread on that stock, but he holds no other position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Netflix. Motley Fool newsletter services have recommended buying shares of Netflix. The Motley Fool has a disclosure policy.
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