Despite higher sales, online content deliverer Limelight Networks Inc. widened its loss during the first quarter after incurring higher costs and operating expenses.
The Tempe-based company on Thursday said it lost $9.8 million, or 9 cents per share, during the quarter than ended March 31. That compares with $5.8 million loss, or 7 cents per share, during the same quarter of 2010.
Reported revenue during the quarter was $49.8 million, an increase of 38 percent compared with revenue of $36 million during the same quarter last year.
Limelight provides services that accelerate the delivery of videos, music, software updates and other content via the Internet,
The company said it is positioned to take advantage of three trends; the shift of video and the accompanying advertising dollars online; the growth of mobile internet and tablet computing; and the migration of software application and IT services to the cloud.
Cloud-based services comprised 33 percent of the company's revenue during the quarter.
"We are pleased with how this strategic positioning, our global scale and our investments in cloud-based services are leading to healthy growth," said Jeff Lunsford, chairman and CEO, in a statement.
The company announced its earnings before the market closed Thursday. Shares were up nearly 2 percent to $6.38 when trading ended. But in after-hours trading, the stock increased nearly 6 percent to $6.76 per share.
On Tuesday Limelight announced it acquired Web content manager Clickability for $10 million in cash and stock. San Francisco-based Clickability is a provider of Web content-management tools. It was founded in 1999 to help marketers and online publishers create, manage and publish content globally. It tracks visitor experiences and implements branding and social-media campaigns on sites.
Limelight expects Clickability to contribute approximately $4.5 million to $5 million of revenue in the second half of 2011.
Limelight ended the first quarter with $135 million in cash and short-term marketable securities. The company anticipates second quarter revenue to be in the range of $51.8 million to $53.2 million, higher than analyst estimates of $51.2 million.
by John Yantis The Arizona Republic May. 6, 2011 09:34 AM
Limelight boosts sales but costs widen loss
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