Shares of Limelight Networks rise in after-hours action after the Tempe, Ariz.-based content delivery technology company posts strong results for the fourth quarter and gives a favorable top-line outlook for 2011.
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."