Why Limelight Networks Shares Are Soaring Today
Shares of Limelight Networks (NASDAQ: LLNW) rose as much as 10.9% on Friday, backing down to a 9% gain as of 1:40 p.m., EDT. The content-delivery network operator missed Wall Street's second-quarter estimates across the board, but investors saw encouraging signs that the worst of this downturn may be behind Limelight.
In Q2, Limelight's revenue fell 17% year over year to $48.3 million. The adjusted bottom line swung from a $0.03 profit per share to a $0.06 net loss per share. Management left their full-year guidance targets steady, aiming for an adjusted net loss of $0.10 per share and top-line sales in the neighborhood of $225 million.
Operating under new management, Limelight focused on improved service quality in Q2. Media buffering rates were lowered, and global network throughput rose by 20%. This was done while the company lowered network operation costs by $8 million. On the earnings call, CFO Dan Boncel said that Limelight's network traffic has been ramping up in recent weeks, and the cost savings from actions taken in March are starting to pay dividends.
Source Fool.com
