Edgio (EGIOQ) 8-K Limelight Networks Reports Fourth-Quarter and Full Year 2007 Results

Exhibit 99.1

Limelight Networks Reports Fourth-Quarter and Full Year 2007 Results

TEMPE, Ariz. — 19 FEB 2008- Limelight Networks, Inc. (Nasdaq: LLNW) today reported fourth quarter and full year results for the period ended December 31, 2007.

“2007 was a year of strong growth for Limelight Networks. We added over 450 new customers, substantially expanding our domestic and international market presence and winning key new customers in the online game, social media, and mainstream entertainment market segments, all while growing our peak traffic levels over 90%,” said Jeff Lunsford, Chairman and CEO, Limelight Networks, Inc.

For the fourth quarter 2007, the Company generated $29.1 million of GAAP (generally accepted accounting principles) revenue with a net loss of $0.08 per basic share. For the full year, the Company reported GAAP revenue of $103.1 million with a GAAP net loss of $0.41 per basic share.

The Company generated non-GAAP revenue for the fourth quarter 2007 of $29.9 million, adjusted EBITDA of $4.9 million and non-GAAP net income of $0.01 per basic share. For the full year, the Company reported non-GAAP revenue of $106.2 million, adjusted EBITDA of $21.5 million and non-GAAP net income of $0.09 per basic share — see reconciliation to GAAP measures attached.

During the fourth quarter, the Company:

• Signed contracts with over 200 new customers.

• Added over 170 net new customers into production, a new quarterly record, raising the total number of production customers to over 1,150.

• Was named the exclusive content delivery network for the world’s first studio-backed feature film to be released online, in conjunction with Blockbuster, Inc., and Microsoft Silverlight.

• Announced Brightcove, Fox Interactive Media, MSN Video and Rajshri.com as customers for the LimelightHD service.

• Introduced support for Adobe Flash Media Streaming Server 3.

• Strengthened the Company’s senior leadership team, with the appointment of Philip C. Maynard as senior vice president, chief legal officer, and secretary; and Roxanne Ivory, as vice president of global marketing.

“More organizations are moving digital assets online and looking to make them instantly available in high-fidelity to end-users. Limelight Networks’ scalable architecture uniquely addresses the challenges inherent in this task. We believe we have a strong and compelling solution to continue supporting our customers’ high-growth initiatives within this exciting market,” added Lunsford.

First Quarter 2008 Outlook

The Company anticipates revenue to be in the range of $30.0 million to $32.0 million, non-GAAP net income to be in the range of $0.02 to $0.03 per basic share and adjusted EBITDA to be in the range $2.0 million to $4.0 million, after including litigation-related costs during the quarter of $3.5 to $4.0 million.

Conference Call and Web Audiocast

Management will host a quarterly conference call for investors beginning at 2:00 p.m. PST (5 p.m. EST) on Tuesday, February 19, 2008. This call can be accessed toll-free at 1-877-574-8878 within the United States or 1-706-634-6364 outside of the U.S using Conference ID 33463019. The conference call will also be audiocast live at http://www.llnw.com and a replay will be available following the call from the Company’s website.

Financial Statements

LIMELIGHT NETWORKS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	December 31,		December 31,
	2007		2006
Assets
Cash and cash equivalents	$	113,824	$	7,611
Marketable securities, short-term		83,273		—
Accounts receivable, net		22,338		17,526
Income tax receivable		1,190		2,980
Deferred income taxes		—		362
Prepaid expenses and other current assets		4,469		3,011
Current assets		225,094		31,490
Property and equipment, net		46,968		41,784
Investment in marketable securities		87		285
Deferred income taxes		—		106
Other assets		1,440		759
Total assets	$	273,589	$	74,424
Liabilities and stockholders’ equity
Accounts payable	$	8,522	$	6,419
Accounts payable, related parties		230		781
Deferred revenue, current portion		4,237		197
Credit facilities, current portion		—		2,938
Capital lease obligations, current portion		—		245
Other current liabilities		9,312		6,314
Current liabilities		22,301		16,894
Deferred revenue, less current portion		8,189		—
Credit facilities, less current portion		—		20,456
Capital lease obligations, less current portion		—		5
Other liabilities		—		30
Total liabilities		30,490		37,385
Stockholders’ equity		243,099		37,039
Total liabilities and stockholders’ equity	$	273,589	$	74,424

LIMELIGHT NETWORKS, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2006			2007			2006
Revenues	$	29,132		$	29,190		$	22,110		$	17,454		$	103,111		$	65,243
Costs and operating expenses:
Cost of revenues (1)(3)		18,435			17,773			13,232			10,200			65,541			35,978
General and administrative (1)(3)		7,030			8,117			10,061			4,679			31,752			18,614
Sales and marketing (1)		8,619			7,421			2,450			1,860			25,462			6,841
Research and development (1)		1,385			1,294			1,200			1,193			5,504			3,151
Total costs and operating expenses		35,469			34,605			26,943			17,932			128,259			64,584
Operating income (loss)		(6,337	)		(5,415	)		(4,833	)		(478	)		(25,148	)		659
Interest expense (2)		(6	)		(18	)		(431	)		(373	)		(1,418	)		(1,828	)
Interest income		2,035			2,456			129			79			5,153			208
Other income		(177	)		33			105			70			(144	)		175
Income (loss) before income taxes		(4,485	)		(2,944	)		(5,030	)		(702	)		(21,557	)		(786	)
Income tax expense		1,798			181			(51	)		688			2,401			2,591
Net loss	$	(6,283	)	$	(3,125	)	$	(4,979	)	$	(1,390	)	$	(23,958	)	$	(3,377	)
Net loss allocable to common stockholders	$	(6,283	)	$	(3,125	)	$	(4,979	)	$	(1,390	)	$	(23,958	)	$	(3,377	)
Net loss per share:
Basic	$	(0.08	)	$	(0.04	)	$	(0.25	)	$	(0.09	)	$	(0.41	)	$	(0.13	)
Diluted	$	(0.08	)	$	(0.04	)	$	(0.25	)	$	(0.09	)	$	(0.41	)	$	(0.13	)
Shares used in per share calculations:
Basic		82,140			82,045			19,882			15,670			57,982			25,597
Diluted		82,140			82,045			19,882			15,670			57,982			25,597

(1)	Includes share-based compensation (see supplemental table for figures)
(2)	Includes zero and approximately $424K of deferred financing fees for the three and twelve month periods ended December 31, 2007
(3)	Includes depreciation (see supplemental table for figures)

LIMELIGHT NETWORKS, INC.
Supplemental Financial Data
(In thousands)
(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31,		September 30,		December 31,			September 30,		December 31,		December 31,
	2007		2007		2006			2006		2007		2006
Supplemental financial data (in thousands):
Share-based compensation:
Cost of revenues	$	479	$	422	$	201		$	136	$	1,489	$	459
General and administrative		1,454		1,702		4,655			2,097		10,653		6,794
Sales and marketing		1,272		1,289		143			84		3,948		334
Research and development		420		542		856			735		2,820		1,661
Total share-based Compensation	$	3,625	$	3,955	$	5,855		$	3,052	$	18,910	$	9,248
Depreciation and amortization:
Network-related depreciation	$	5,428	$	5,602	$	3,908		$	2,900	$	20,739	$	10,316
Other depreciation		278		268		91			63		857		226
Total depreciation and amortization	$	5,706	$	5,870	$	3,999		$	2,963	$	21,596	$	10,542
Capital expenditures:
Capital Expenditures (cash & accrual)	$	5,136	$	7,291	$	17,109		$	12,710	$	26,771	$	40,339
Net increase (decrease) in cash, cash equivalents and marketable securities	$	3,032	$	6,370	$	(3,501	)	$	9,471	$	189,288	$	6,005
End of period statistics:
Number of production customers under recurring contract		1,159		988		693			625		1,159		693
Number of employees		239		219		123			108		239		123

LIMELIGHT NETWORKS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2006			2007			2006
Cash flows from operating activities:
Net loss	$	(6,283	)	$	(3,125	)	$	(4,979	)	$	(1,390	)	$	(23,958	)	$	(3,377	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		5,706			5,870			3,999			2,963			21,596			10,542
Share-based compensation		3,625			3,955			5,855			3,052			18,910			9,248
Deferred income tax expense (benefit)		33			(294	)		(470	)		(1	)		319			(471	)
Accounts receivable charges		1,337			1,689			743			242			4,873			1,162
Accretion of debt discount		—			—			74			33			424			143
Accretion of marketable securities		(530	)		(277	)		—			—			(807	)		—
Gain on sale of property and equipment		—			—			(175	)		—			—			(175	)
Loss on foreign exchange		42			—			—			—			42			—
Loss on investment		387			—			—			—			387			—
Changes in operating assets and liabilities:
Accounts receivable		(5,244	)		1,202			(6,313	)		(2,978	)		(9,685	)		(14,415	)
Prepaid expenses and other current assets		1,037			(143	)		(499	)		(908	)		(1,458	)		(2,071	)
Income taxes receivable		2,946			412			(3,124	)		144			2,820			(2,980	)
Other assets		7			(153	)		(162	)		(25	)		(691	)		(423	)
Accounts payable		3,614			(1,883	)		(6,074	)		8,785			(1,981	)		3,725
Accounts payable, related parties		230			(19	)		781			(958	)		(551	)		419
Deferred revenue and Other current liabilities		(4,314	)		10,471			2,161			860			15,824			4,966
Other long term liabilities		(30	)		—			—			—			(30	)		—
Net cash provided (used in) by operating activities:		2,563			17,705			(8,183	)		9,819			26,034			6,293
Cash flows from investing activities:
Purchase of marketable securities		(37,569	)		(43,411	)		—			—			(109,570	)		—
Sale of marketable securities		20,300			7,000			—			—			27,300			—
Purchases of property and equipment		(2,081	)		(12,094	)		(13,282	)		(16,895	)		(22,731	)		(40,609	)

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2006			2007			2006
Net cash used in investing activities		(19,350	)		(48,505	)		(13,282	)		(16,895	)		(105,001	)		(40,609	)
Cash flows from financing activities:
Borrowings on credit facilities		—			—			23,818			2,500			—			32,873
Payments on credit facilities		—			—			(7,749	)		(11,435	)		(23,818	)		(19,682	)
Borrowings on line of credit		—			—			—			—			1,500			—
Payments on line of credit		—			—			—			(1,000	)		(1,500	)		(1,000	)
Payments on capital lease obligations		—			—			(71	)		(72	)		(250	)		(242	)
Payments on notes payable — related parties		—			—			—			—			—			(195	)
Escrow funds returned from share repurchase		1,190			1,029			317			412			4,608			729
Tax benefit from share-based compensation		543			—			1,627			—			566			1,627
Proceeds from exercise of stock options		128			4			200			1,840			162			2,086
Net proceeds from preferred stock issuance		—			—			(107	)		126,423			—			126,316
Repurchase of common stock		—			—			—			(102,121	)		—			(102,121	)
Proceeds from initial public offering, net of issuance costs		—			(586	)		—			—			203,912			—
Net cash provided by financing activities		1,861			447			18,035			16,547			185,180			40,391
Net increase (decrease) in cash and cash equivalents		(14,926	)		(30,353	)		(3,430	)		9,471			106,213			6,075
Cash and cash equivalents, beginning of period		128,750			159,103			11,041			1,570			7,611			1,536
Cash and cash equivalents, end of period	$	113,824		$	128,750		$	7,611		$	11,041		$	113,824		$	7,611

Use of Non-GAAP Financial Measures

     In evaluating our business, we consider and use non-GAAP revenue, non-GAAP net income and Adjusted EBITDA as a supplemental measure of our operating performance. We consider non-GAAP revenue and net income measurements to be an important indicator of overall performance of the Company because it allows us to illustrate the impact of revenue generated from our multi-element contract as well as to eliminate the effects of share-based compensation and litigation expense. We define EBITDA as GAAP net income before net interest expense, provision for income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA plus income from our multi-element contract and expenses that we do not consider reflective of our ongoing operations. We use Adjusted EBITDA as a supplemental measure to review and assess our operating performance. We also believe use of Adjusted EBITDA facilitates investors’ use of operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in such items as capital structures (affecting relative interest expense and share-based compensation expense), the book amortization of intangibles (affecting relative amortization expense), the age and book value of facilities and equipment (affecting relative depreciation expense) and other non cash expenses. We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance.

     The terms non-GAAP revenue and net income, EBITDA and Adjusted EBITDA are not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our non-GAAP revenue and net income, EBITDA and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, you should not consider non-GAAP revenue and net income, EBITDA and Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

• EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

• they do not reflect changes in, or cash requirements for, our working capital needs;

• they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;

• they do not reflect income taxes or the cash requirements for any tax payments;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;

• while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as assumed life of the options and assumed volatility of our common stock; and

• other companies may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

     We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP Net Income and Adjusted EBITDA only supplementally. Non-GAAP Net Income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

     In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures.

Reconciliation of GAAP Revenue to Non-GAAP Revenue
(In thousands)
(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31,		September 30,			December 31,		September 30,		December 31,		December 31,
	2007		2007			2006		2006		2007		2006
GAAP Revenue	$	29,132	$	29,190		$	22,110	$	17,454	$	103,111	$	65,243
Deferred Traffic Revenue		—		(2,645	)		—		—		—		—
Deferred Custom CDN Services		722		1,504			—		—		3,047		—
Non-GAAP Revenue	$	29,854	$	28,049		$	22,110	$	17,454	$	106,158	$	65,243

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2006			2007			2006
GAAP net loss	$	(6,283	)	$	(3,125	)	$	(4,979	)	$	(1,390	)	$	(23,958	)	$	(3,377	)
Share-based compensation		3,625			3,955			5,855			3,052			18,910			9,248
Litigation expenses		2,772			2,002			2,296			825			7,295			3,121
Deferred revenue		722			(1,141	)		—			—			3,047			—
Deferred cost of traffic and services		21			649			—			—			(205	)		—
Non-GAAP net income	$	857		$	2,340		$	3,172		$	2,487		$	5,089		$	8,992
Non-GAAP net income basic share	$	0.01		$	0.03		$	0.16		$	0.16		$	0.09		$	0.35

Reconciliation of GAAP Net Income (Loss) to EBITDA to Adjusted EBITDA
(In thousands)
(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2006			2007			2006
GAAP net loss	$	(6,283	)	$	(3,125	)	$	(4,979	)	$	(1,390	)	$	(23,958	)	$	(3,377	)
Add: depreciation and amortization		5,706			5,870			3,999			2,963			21,596			10,542
Add: interest expense		6			18			431			373			1,418			1,828
Less: interest/other income		(1,858	)		(2,490	)		(234	)		(149	)		(5,009	)		(383	)
Plus income tax expense (benefit)		1,798			181			(51	)		688			2,401			2,591
EBITDA	$	(631	)	$	454		$	(834	)	$	2,485		$	(3,552	)	$	11,201
Add: share-based compensation		3,625			3,955			5,855			3,052			18,910			9,248
Add: litigation expenses recoverable from escrow (1)		1,132			1,001			1,148			413			3,394			1,561
Add: deferred traffic and services revenue		722			(1,141	)		—			—			3,047			—
Less: deferred traffic and service costs		(21	)		(649	)		—			—			265			—
Adjusted EBITDA	$	4,869		$	4,918		$	6,169		$	5,950		$	21,534		$	22,010

(1) During 2006, we repurchased stock in a transaction with a total value of $102.1 million. Selling stockholders agreed to hold $10.1 million of the proceeds to offset specific claims for reimbursement associated with the Akamai lawsuit and other undisclosed obligations that may arise. For the three month periods ended December 31, 2007 and 2006, we had $1.1 million and $1.1 million, respectively, of litigation costs subject to reimbursement from this escrow. For the twelve month periods ended December 31, 2007 and 2006, we had $3.4 million and $1.6 million, respectively, of litigation costs subject to reimbursement from this escrow.

Safe-Harbor Statement

This press release contains forward-looking statements concerning the outlook for the Company’s revenues, net loss and stock-based compensation expense for the first quarter of 2008. Forward-looking statements are not guarantees and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, final review of the results and amendments and preparation of quarterly financial statements, including consultation with our outside auditors. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason.

About Limelight Networks

Limelight Networks, Inc. (Nasdaq: LLNW) is enabling new business models by re-inventing content distribution over the Internet.

The Company operates a content delivery network that bypasses the busy public Internet to bring media content directly to an online audience. This architecture is optimized to securely store and instantly deliver any digital asset in a media library, through thousands of servers interconnected by a dedicated global optical network, and direct connections to more than 900 access networks around the world.

A trusted partner with a passion for customer service and proactive support, Limelight Networks helps maximize the online presence of thousands of entertainment, technology, enterprise and government organizations. For more information, visit www.limelightnetworks.com.

# # #

Media and Investor Contact:
Paul Alfieri
Limelight Networks, Inc.
+1-917-297-4241
palfieri@llnw.com

Copyright^©2008 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners