LLNW - 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.
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Why Limelight Networks Shares Are Soaring Today