Edgio (EGIOQ) 8-K Limelight Networks Reports Second Quarter 2008 Results

Exhibit 99.1

LIMELIGHT NETWORKS REPORTS SECOND QUARTER 2008 RESULTS

• Grew revenue to $30.3 million, a 22% increase from the year-ago second-quarter non-GAAP revenue of $24.9 million

• Expanded customer base to approximately 1,300

• Selected by Microsoft as the primary provider of content delivery services for video content on NBCOlympics.com on MSN

TEMPE, Ariz.— 12 August 2008 — Limelight Networks, Inc. (Nasdaq: LLNW) today reported second-quarter 2008 revenue of $30.3 million and a net loss of $15.3 million, or 18 cents per basic share. Non-GAAP net loss, adjusted for certain charges, was $1.6 million or 2 cents per basic share. EBITDA, adjusted for share-based compensation, litigation and potential damage cost accruals, was $3.9 million. The non-GAAP loss of 2 cents per basic share excludes a charge of 11 cents per basic share related to litigation and potential damage cost accruals, and 5 cents per basic share of share-based compensation.

Reconciliation of GAAP to non-GAAP net income is included in the attached tables.

“We are pleased with our rapid traffic growth and continued progress on network expansion in the second quarter,” commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. “Limelight Networks continues to be well-positioned as a delivery partner of choice for the largest live and on-demand events in the online world.”

Limelight Networks expanded its customer base to approximately 1,300 in the second quarter. The company also continued to build out its network transmission capacity, and expects to achieve 2 terabits per second of capacity during Q3 2008.

Financial Highlights

Second-quarter revenue was $30.3 million, up 22 percent from $24.9 million of non-GAAP revenue in the year-ago second quarter and above the range of guidance previously provided by the Company. Capital purchases were $5.0 million. The Company ended the quarter with no debt and approximately $184 million in cash and short-term marketable securities.

Third-Quarter Outlook

Limelight Networks anticipates third-quarter revenue to be in the range of $30 million to $32 million. The Company also expects substantially reduced potential damage accruals of under $1.0 million related to

ongoing litigation.

Conference Call and Web Audiocast

Management will host a quarterly conference call for investors on August 12, 2008 beginning at 2:00 p.m. PDT (5 p.m. EDT). This call can be accessed toll-free at 1-866-713-8562 within the United States or 1-617-597-5310 outside of the U.S using Conference ID 72650354.

The conference call will also be audiocast live at http://www.llnw.com. A replay of the call will also be available from the Company’s website for one week.

Financial Statements

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

	June 30,		December 31,
	2008		2007
Assets
Cash and cash equivalents	$	114,841	$	113,824
Marketable securities		69,658		83,273
Accounts receivable, net		22,070		21,407
Income tax receivable		1,545		1,960
Prepaid expenses and other current assets		9,540		4,469
Current assets		217,654		224,933
Property and equipment, net		42,476		46,968
Marketable securities, less current portion		16		87
Other assets		812		1,440
Total assets	$	260,958	$	273,428
Liabilities and stockholders’ equity
Accounts payable	$	6,126	$	8,523
Accounts payable, related parties		—		230
Deferred revenue, current portion		5,117		4,237
Provision for litigation		62,008		48,130
Other current liabilities		10,488		9,312
Current liabilities		83,739		70,432
Deferred revenue, less current portion		6,836		8,189
Other liabilities		850		770
Total liabilities		91,425		79,391
Stockholders’ equity		169,533		194,037
Total liabilities and stockholders’ equity	$	260,958	$	273,428

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

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2007			2008			2007
Revenues	$	30,314		$	30,202		$	21,436		$	23,353		$	60,516		$	44,789
Costs and operating expenses:
Cost of revenues * †		19,751			20,672			14,835			14,497			40,423			29,332
General and administrative * †		9,463			13,329			8,831			7,774			22,791			16,605
Sales and marketing *		8,965			8,142			6,404			3,018			17,107			9,422
Research and development *		1,694			1,590			1,541			1,285			3,284			2,826
Provision for litigation		6,743			7,134			—			—			13,878			—
Total costs and operating expenses		46,616			50,867			31,611			26,574			97,483			58,185
Operating loss		(16,302	)		(20,665	)		(10,175	)		(3,221	)		(36,967	)		(13,396	)
Interest expense		(11	)		(21	)		(821	)		(573	)		(33	)		(1,394	)
Interest income		1,334			1,891			573			89			3,226			662
Other income (expense)		(377	)		170			—			—			(207	)		—
Loss before income taxes		(15,356	)		(18,625	)		(10,423	)		(3,705	)		(33,981	)		(14,128	)
Income tax (benefit) expense		(25	)		(183	)		221			200			(208	)		421
Net loss	$	(15,331	)	$	(18,442	)	$	(10,644	)	$	(3,905	)	$	(33,773	)	$	(14,549	)
Net loss allocable to common stockholders	$	(15,331	)	$	(18,442	)	$	(10,644	)	$	(3,905	)	$	(33,773	)	$	(14,549	)
Net loss per share:
Basic	$	(0.18	)	$	(0.22	)	$	(0.23	)	$	(0.18	)	$	(0.41	)	$	(0.43	)
Diluted	$	(0.18	)	$	(0.22	)	$	(0.23	)	$	(0.18	)	$	(0.41	)	$	(0.43	)
Shares used in per share calculations:
Basic		82,889			82,623			45,791			21,945			82,756			33,871
Diluted		82,889			82,623			45,791			21,945			82,756			33,871

*	Includes stock-related compensation (see supplemental table for figures)
†	Includes depreciation (see supplemental table for figures)

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

	Three Months Ended										Six Months Ended
	June 30,			March 31,			June 30,		March 31,		June 30,			June 30,
	2008			2008			2007		2007		2008			2007
Supplemental financial data (in thousands):
Stock-related compensation:
Cost of revenues	$	558		$	507		$	346	$	242	$	1,064		$	588
General and administrative		1,698			1,665			3,754		3,743		3,363			7,497
Sales and marketing		1,431			1,306			1,152		235		2,738			1,387
Research and development		598			482			1,007		851		1,080			1,858
Total stock-related compensation	$	4,285		$	3,960		$	6,259	$	5,071	$	8,245		$	11,330
Depreciation and amortization:
Network-related depreciation	$	6,192		$	6,013		$	5,020	$	4,688	$	12,205		$	9,708
Other depreciation		311			247			174		137		557			311
Total depreciation and amortization	$	6,503		$	6,260		$	5,194	$	4,825	$	12,762		$	10,019
Capital expenditures:
Capital expenditures (cash and accrual)	$	5,013		$	3,095		$	8,769	$	5,575	$	8,108		$	14,344
Net increase (decrease) in cash, cash equivalents and marketable securities	$	(10,194	)	$	(2,475	)	$	174,891	$	4,995	$	(12,669	)	$	179,886
End of period statistics:
Number of customers under recurring contract		1,291			1,232			876		726		1,291			876
Number of employees		250			244			215		167		250			215

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

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2007			2008			2007
Cash flows from operating activities:
Net loss	$	(15,331	)	$	(18,442	)	$	(10,644	)	$	(3,905	)	$	(33,773	)	$	(14,549	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		6,503			6,260			5,194			4,824			12,762			10,019
Stock-based compensation		4,285			3,960			6,259			5,071			8,245			11,330
Deferred income tax expense (benefit)		23			(234	)		1,048			(467	)		(211	)		580
Provision for litigation		6,743			7,134			—			—			13,878			—
Loss on foreign exchange		232			—			—			—			232			—
Accounts receivable charges		1,925			1,562			1,170			677			3,487			1,847
Accretion of debt discount		—			—			383			41			—			424
Accretion of marketable securities		21			(453	)		—			—			(432	)		—
Loss on marketable securities		16			55			—			—			71			—
Changes in operating assets and liabilities:
Accounts receivable		(1,880	)		(2,271	)		(7,641	)		1,998			(4,151	)		(5,643	)
Prepaid expenses and other current assets		(4,452	)		87			(545	)		(1,809	)		(4,365	)		(2,354	)
Income taxes receivable		(129	)		594			(848	)		310			465			(538	)
Other assets		67			564			(426	)		(119	)		631			(545	)
Accounts payable		(73	)		(4,634	)		(2,980	)		(732	)		(4,707	)		(3,712	)
Accounts payable, related parties		(150	)		(80	)		(763	)		1			(230	)		(762	)
Deferred revenue		(774	)		301			3,612			20			(473	)		3,632
Other current liabilities		(3,859	)		5,035			5,405			630			1,176			6,035
Other long term liabilities		(1	)		1			—			—			—			—
Net cash (used in) provided by operating activities:		(6,834	)		(561	)		(776	)		6,540			(7,395	)		5,764
Cash flows from investing activities:
Purchase of marketable securities		(30,400	)		(34,725	)		(28,589	)		—			(65,125	)		(28,589	)
Sale of marketable securities		34,825			44,200			—			—			79,025			—
Purchases of property and equipment		(4,231	)		(2,435	)		(5,461	)		(3,095	)		(6,666	)		(8,556	)
Net cash used in investing activities		194			7,040			(34,050	)		(3,095	)		7,234			(37,145	)

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2007			2008			2007
Cash flows from financing activities:
Payments on credit facilities		—			—			(23,818	)		—			—			(23,818	)
Borrowings on line of credit		—			—			—			1,500			—			1,500
Payments on line of credit		—			—			(1,500	)		—			—			(1,500	)
Payments on capital lease obligations		—			—			(91	)		(159	)		—			(250	)
Payments on notes payable — related parties		—			—			—			—			—			—
Escrow funds returned from share repurchase		1,070			—			2,091			298			1,070			2,389
Excess tax benefits related to stock option exercises		—			—			—			23			—			23
Proceeds from exercise of stock options and warrants		53			107			—			31			160			31
Proceeds from initial public offering, net of issuance costs		—			—			204,498			—			—			204,498
Net cash provided by financing activities		1,123			107			181,180			1,693			1,230			182,873
Effect of exchange rate changes on cash		104			(156	)		—			—			(52	)		—
Net increase (decrease) in cash and cash equivalents		(5,413	)		6,430			146,354			5,138			1,017			151,492
Cash and cash equivalents, beginning of period		120,254			113,824			12,749			7,611			113,824			7,611
Cash and cash equivalents, end of period	$	114,841		$	120,254		$	159,103		$	12,749		$	114,841		$	159,103

Use of Non-GAAP Financial Measures

     To evaluate our business, we consider and use Non-GAAP revenue, Non-GAAP net income (loss) and Adjusted EBITDA as a supplemental measure of operating performance. We consider Non-GAAP revenue and net income (loss) to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects from our multi-element contract as well as eliminate the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income (loss) before interest income, interest expense, other income and 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 operating performance. We also believe use of Adjusted EBITDA facilitates investors’ use of operating performance comparisons from period to period.

     The terms Non-GAAP revenue, net income (loss), 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, net income (loss), EBITDA and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP revenue, net income, EBITDA and Adjusted EBITDA should not be considered 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 cash requirements necessary for litigation costs and damages accruals;

• 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 will be replaced sometime 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 the assumed life of the options and the 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 Revenue, Net Income (Loss) and Adjusted EBITDA only as supplemental support for management’s analysis of business performance. Non-GAAP Revenue, Net Income (Loss), 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								Six Months Ended
	June 30,		March 31,		June 30,		March 31,		June 30,		June 30,
	2008		2008		2007		2007		2008		2007
GAAP Revenue	$NA		$NA		$	21,436	$NA		$NA		$	44,789
Deferred Traffic Revenue		—		—		2,645		—		—		2,645
Deferred Custom CDN Services Revenue		—		—		820		—		—		820
Non-GAAP Revenue	$NA		$NA		$	24,901	$NA		$NA		$	48,254

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

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2007			2008			2007
GAAP net loss	$	(15,331	)	$	(18,442	)	$	(10,644	)	$	(3,905	)	$	(33,773	)	$	(14,549	)
Deferred revenue								3,465									3,465
Deferred cost of traffic and services								(935	)								(935	)
Provision for potential litigation damages		6,743			7,134			—			—			13,878			—
Share-based compensation		4,285			3,960			6,259			5,071			8,245			11,330
Litigation defense expenses		2,667			5,366			1,636			885			8,033			2,521
Non-GAAP net (loss) income	$	(1,636	)	$	(1,982	)	$	(219	)	$	2,051		$	(3,617	)	$	1,832

Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
Adjusted for Share-Based Compensation and Litigation and Damage Costs
(In thousands)
(Unaudited)

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			March 31,			June 30,			June 30,
	2008			2008			2007			2007			2008			2007
GAAP net loss	$	(15,331	)	$	(18,442	)	$	(10,644	)	$	(3,905	)	$	(33,773	)	$	(14,549	)
Add: depreciation and amortization		6,503			6,260			5,194			4,825			12,762			10,019
Add: interest expense		11			21			821			573			33			1,394
Less: interest and other income		(957	)		(2,061	)		(573	)		(89	)		(3,019	)		(662	)
Plus income tax (benefit) expense		(25	)		(183	)		221			200			(208	)		421
EBITDA	$	(9,799	)	$	(14,405	)	$	(4,981	)	$	1,604		$	(24,205	)	$	(3,377	)
Add: deferred revenue								3,465									3,465
Add: provision for litigation		6,743			7,134			—			—			13,878			—
Add: share-based compensation		4,285			3,960			6,259			5,071			8,245			11,330
Add: litigation defense expenses		2,667			5,366			1,636			885			8,033			2,521
Less: deferred traffic and service costs								(935	)								(935	)
Adjusted EBITDA	$	3,896		$	2,055		$	5,444		$	7,560		$	5,951		$	13,004

Safe-Harbor Statement

This press release contains forward-looking statements concerning, among other things, the outlook for the Company’s revenues, net loss and stock-based compensation expense for the second quarter of 2008, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements and litigation and related expenses. 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, risks and uncertainties discussed in the Company’s Annual Report on Form 10K and other filings with the Securities and Exchange Commission and the 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.

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About Limelight Networks, Inc.

Limelight Networks, Inc. (Nasdaq: LLNW) is a content delivery partner enabling the next wave of Internet business and entertainment. More than 1300 Internet, entertainment, software, and technology brands trust our robust, scalable platform to monetize their digital assets by delivering a brilliant online experience to their global audience. Our architecture bypasses the busy public Internet using a dedicated optical network that interconnects thousands of servers and delivers massive files at the speed of light — directly to the access networks that consumers use every day. Our proven network and passion for service provides our customers confidence that every object in their library will be delivered to every user, every time. Read our blog athttp://blog.llnw.com or visithttp://www.limelightnetworks.com for more information.

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

Media Contact:

Paul Alfieri of Limelight Networks, Inc.
+1-917-297-4241
palfieri@llnw.com

-or-

Matt Hale of Limelight Networks, Inc.
+1-602-850-5045
mhale@llnw.com