Limelight Rallies on Strong Report, Outlook

NEW YORK ( TheStreet) -- Shares of Limelight Networks ( LLNW) rose in after-hours action after the Tempe, Ariz.-based content delivery technology company posted strong results for the fourth quarter and gave a favorable top-line outlook for 2011.

The company, whose software applications such as LimeLight Deliver and LimeLight Reach enable streaming of content and advertising, reported a non-GAAP profit of $1.5 million, or a penny per share, on revenue of $55.2 million for the three months ended Dec. 31. The non-GAAP results exclude share-based compensation and acquisition-related expenses, among other items.

The average estimate of analysts polled by Thomson Reuters called for a breakeven quarter on a per share basis with revenue of $53. 3 million.

The stock was last quoted at $7.06, up 9.3%, on volume of more than 1.04 million, according to Nasdaq.com. Based on a regular session close of $6.46, the shares were already up almost 70% in the past year; although they had pulled back nearly 30% since hitting a 52-week high of $8.97 on Nov. 9.

For the current quarter, Limelight sees revenue of $48 million to $49.5 million. Wall Street's current consensus estimate is a loss of a penny per share in the March period on revenue of $48.2 million.

The company forecast revenue growth of 15% to 20% for fiscal 2011 from its total of $183.3 million in 2010. That view implies a range of $210.8 million to $220 million vs. the analysts average of $212.9 million, according to Thomson Reuters. The stock got walloped last week in sympathy with competitor Akamai Technologies ( AKAM) after that company gave a lukewarm outlook for the start of 2011.

Limelight said its cloud-based and consulting services continued to grow in the latest quarter, where they represented 36% of total revenue. Revenue from its mobile business jumped 200% year-over-year, while site and application acceleration services grew 150% and online video platform growth came in at 110%.

"Limelight Networks' content delivery and cloud-based services have become embedded into the fabric of the Internet, which has, through computers, tablets, smartphones and Internet-connected televisions, become embedded into the fabric of our lives," said Jeff Lunsford, the company's chairman and CEO, in a statement. "We believe that our globally distributed, high-performance computing platform, and the solutions that run on it, are unique within the technology industry, positioning us well for continued growth and market share gains in 2011."

Wall Street was pretty split on Limelight's prospects ahead of the report. The breakdown of the nine analysts covering the stock was four at strong buy, four at hold and one at sell, according to Thomson Reuters data. The median 12-month price target sat at $7.50 with the most bullish estimate being $10 and the most bearish at $5.50.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to: tips@thestreet.com

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

More from Technology

Throwback Thursday: Intel Edition

Throwback Thursday: Intel Edition

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Intel CEO's Surprise Exit Leaves 'Large Void' That Won't Be Easy to Fill

Intel CEO's Surprise Exit Leaves 'Large Void' That Won't Be Easy to Fill

The Winners and Losers in Thursday's Market

The Winners and Losers in Thursday's Market

Will Porsche's Electric Car Push Take Down Tesla?

Will Porsche's Electric Car Push Take Down Tesla?