Edgio (EGIOQ) 8-K Limelight Networks Reports Fourth Quarter and Full Year 2008 Results

Exhibit 99.1

LIMELIGHT NETWORKS REPORTS FOURTH QUARTER AND FULL YEAR 2008 RESULTS

• Record revenue of $36 million for the fourth quarter of 2008, a 23% increase from fourth quarter 2007

• Average annualized revenue per customer (AARPC) growth of 6% in Q4 through continued focus on high-quality customers

• Addition of over 30 net new customers in Q4 and continued expansion in enterprise and public sectors

• Record network traffic levels in Q4; finished the year with over 25% video CDN market share*

TEMPE, AZ. – 26 February 2009 – Limelight Networks, Inc. (Nasdaq: LLNW) today reported fourth-quarter and full-year 2008 financial results.

“Limelight Networks achieved strong sequential and year-over-year revenue growth in the fourth quarter. Consumers and businesses continue to migrate online to source information, enjoy entertainment media, and conduct commerce. With our robust network-based architecture and disciplined operations, we believe we are well-positioned to capitalize on this long-term trend and grow our business in 2009 even amidst challenging times,” commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

Financial Highlights

For the fourth quarter of 2008, the company reported revenue of $36 million, up 23 percent from $29 million in the same period last year, and a net loss of $14 million, or 17 cents per basic share.

Non-GAAP net loss, adjusted for certain charges, was $2.6 million or 3 cents per basic share. The non-GAAP loss of 3 cents per basic share excludes a charge of 6 cents per basic share related to litigation and potential damage cost accruals, and 7 cents per basic share of share-based compensation. EBITDA, adjusted for share-based compensation, litigation and potential damage cost accruals, was $4.6 million. Capital purchases incurred were $5.2 million. The Company ended the quarter with no bank debt and approximately $175 million in cash and short-term marketable securities.

For the full year 2008, the company reported revenue of $130 million with a net loss of 76 cents per basic share. Non-GAAP net loss, adjusted for certain charges, was $6.7 million, or 8 cents per basic share.

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

First-Quarter Outlook

Limelight Networks anticipates first-quarter revenue to be in the range of $32 million to $33 million.

Financial Tables

LIMELIGHT NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	December 31, 2008			December 31, 2007
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	138,180		$	113,824
Marketable securities		36,463			83,273
Accounts receivable, net of reserves of $7,565 and $4,022 at December 31, 2008 and 2007, respectively		33,482			21,407
Income taxes receivable		7			1,960
Prepaid expenses and other current assets		7,834			4,469
Total current assets		215,966			224,933
Property and equipment, net		40,185			46,968
Marketable securities, less current portion		13			87
Other assets		628			1,440
Total assets	$	256,792		$	273,428
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	8,920		$	8,523
Accounts payable, related parties		—			230
Deferred revenue, current portion		9,865			4,237
Provision for litigation		65,645			48,130
Other current liabilities		14,928			9,312
Total current liabilities		99,358			70,432
Deferred revenue, less current portion		7,303			8,189
Other long-term liabilities		—			770
Total liabilities		106,661			79,391
Commitments and contingencies		—			—
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; 0 shares issued and outstanding		—			—
Common stock, $0.001 par value; 150,000 shares authorized; 83,406 and 82,541 shares issued and outstanding at December 31, 2008 and December 31, 2007, respectively		83			83
Additional paid-in capital		290,593			271,586
Accumulated other comprehensive income		260			106
Accumulated deficit		(140,805	)	��	(77,738	)
Total stockholders’ equity		150,131			194,037
Total liabilities and stockholders’ equity	$	256,792		$	273,428

LIMELIGHT NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007			September 30, 2007			December 31, 2008			December 31, 2007
Revenue	$	35,898		$	33,116		$	29,132		$	29,190		$	129,530		$	103,111
Costs and operating expenses
Cost of revenue * †		21,881			21,557			18,435			17,773			83,861			65,541
General and administrative * †		15,550			15,455			7,961			8,117			53,796			32,684
Sales and marketing *		9,231			8,577			8,619			7,421			34,916			25,462
Research & development *		2,072			2,008			1,385			1,294			7,365			5,504
Provision for litigation		1,295			2,343			48,130			—			17,515			48,130
Total costs and operating expenses		50,029			49,940			84,530			34,605			197,453			177,321
Operating loss		(14,131	)		(16,824	)		(55,398	)		(5,415	)		(67,923	)		(74,210	)
Interest expense		(11	)		(11	)		(6	)		(18	)		(55	)		(1,418	)
Interest income		669			1,203			2,035			2,456			5,098			5,153
Other income (expense)		(375	)		410			(177	)		33			(171	)		(144	)
Loss before taxes		(13,848	)		(15,222	)		(53,546	)		(2,944	)		(63,051	)		(70,619	)
Income tax expense		94			130			1,799			181			16			2,401
Net income loss	$	(13,942	)	$	(15,352	)	$	(55,345	)	$	(3,125	)	$	(63,067	)	$	(73,020	)
Net loss per share:
Basic	$	(0.17	)	$	(0.18	)	$	(0.67	)	$	(0.04	)	$	(0.76	)	$	(1.26	)
Diluted	$	(0.17	)	$	(0.18	)	$	(0.67	)	$	(0.04	)	$	(0.76	)	$	(1.26	)
Shares used in per share calculations:
Basic		83,192			83,022			82,140			82,045			82,932			57,982
Diluted		83,192			83,022			82,140			82,045			82,932			57,982

* Includes share-based 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										Twelve Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007		September 30, 2007		December 31, 2008			December 31, 2007
Supplemental financial data (in thousands):
Share-based compensation:
Cost of revenues	$	585		$	594		$	479	$	422	$	2,243		$	1,489
General and administrative		3,028			1,669			1,454		1,702		8,060			10,653
Sales and marketing		1,262			1,400			1,272		1,289		5,400			3,948
Research and development		633			642			420		542		2,355			2,820
Total share-based compensation	$	5,508		$	4,305		$	3,625	$	3,955	$	18,058		$	18,910
Depreciation and amortization:
Network-related depreciation	$	6,862		$	6,607		$	5,429	$	5,602	$	25,675		$	20,739
Other depreciation		455			343			278		268		1,356			857
Total depreciation and amortization	$	7,317		$	6,950		$	5,707	$	5,870	$	27,031		$	21,596
Capital expenditures:
Capital expenditures (cash and accrual)	$	5,151		$	6,803		$	5,136	$	7,291	$	20,062		$	26,771
Net increase (decrease) in cash, cash equivalents and marketable securities	$	(2,015	)	$	(7,844	)	$	3,032	$	6,370	$	(22,528	)	$	189,288
End of period statistics:
Number of customers under recurring contract		1,336			1,304			1,157		988		1,336			1,157
Number of employees		294			285			237		218		294			237

LIMELIGHT NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007			September 30, 2007			December 31, 2008			December 31, 2007
Cash flows from operating activities:
Net loss	$	(13,942	)	$	(15,353	)	$	(55,345	)	$	(3,125	)	$	(63,067	)	$	(73,020	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		7,317			6,950			5,707			5,870			27,031			21,596
Share-based compensation		5,508			4,305			3,625			3,955			18,058			18,910
Deferred income tax (benefit) expense		(779	)		129			33			(294	)		(861	)		318
Excess tax benefit related to stock option exercises								(1,596	)		—						(1,596	)
Provision for litigation		1,295			2,343			48,130			—			17,515			48,130
Loss (income) on foreign currency exchange		(149	)		(30	)		42			—			(167	)		42
Accounts receivable charges		2,563			1,802			2,268			1,689			7,852			5,805
Accretion of debt discount					—			—			—						424
Accretion of marketable securities		(6	)		11			(530	)		(277	)		(427	)		(805	)
Loss on marketable securities					—			387			—			71			387
Changes in operating assets and liabilities:
Accounts receivable		(4,771	)		(11,006	)		(5,243	)		1,202			(19,928	)		(9,686	)
Prepaid expenses and other current assets		1,695			417			1,037			(143	)		(2,253	)		(1,458	)
Income taxes receivable		1,480			8			2,742			412			1,953			2,616
Other assets		32			153			11			(153	)		816			(687	)
Accounts payable		(531	)		2,348			3,613			(1,883	)		(2,890	)		(1,982	)
Accounts payable, related parties					—			230			(19	)		(230	)		(551	)
Deferred revenue		416			4,799			135			8,462			4,742			12,229
Other current liabilities		718			3,555			(4,449	)		2,009			5,448			3,595
Other long term liabilities					(64	)		740			—			—			740
Net cash provided by (used in) operating activities		846			367			1,537			17,705			(6,337	)		25,007
Cash flows from investing activities:
Purchases of property and equipment		(3,537	)		(7,870	)		(2,081	)		(12,094	)		(18,073	)		(22,731	)
Purchase of marketable securities					—			20,300			(43,411	)		(65,125	)		(109,570	)
Sale of marketable securities		17,125			16,000			(37,569	)		7,000			112,150			27,300
Net cash provided by (used in) investing activities		13,588			8,130			(19,350	)		(48,505	)		28,952			(105,001	)
Cash flows from financing activities:
Payments on credit facilities		—			—			—			—			—			(23,818	)
Borrowings on line of credit		—			—			—			—			—			1,500
Payments on line of credit		—			—			—			—			—			(1,500	)
Payments on capital lease obligations		—			—			—			—			—			(250	)
Escrow funds returned from share repurchase		—			—			1,190			1,029			1,070			4,607
Excess tax benefit related to stock option exercises		—			—			1,573			—			—			1,596
Proceeds from exercise of stock options and warrants		34			31			175			4			225			211
Proceeds from initial public offering, net of issuance costs		—			—			(47	)		(586	)		—			203,865
Net cash provided by financing activities		34			31			2,891			447			1,295			186,211
Effect of exchange rate changes on cash and cash equivalents		566			(223	)		(4	)		—			446			(4	)
Net increase (decrease) in cash and cash equivalents		15,034			8,305			(14,926	)		(30,353	)		24,356			106,213
Cash and cash equivalents, beginning of period		123,146			114,841			128,750			159,103			113,824			7,611
Cash and cash equivalents, end of period	$	138,180		$	123,146		$	113,824		$	128,750		$	138,180		$	113,824

LIMELIGHT NETWORKS, INC.

Reconciliation of GAAP Revenue to Non-GAAP Revenue

(In thousands)

(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31, 2008		September 30, 2008		December 31, 2007		September 30, 2007			December 31, 2008		December 31, 2007
GAAP revenue	$	35,898	$	33,116	$	29,132	$	29,190		$	129,530	$	103,111
Deferred traffic revenue		—		—		—		(2,645	)		—		—
Deferred custom CDN services		—		—		729		1,504			—		3,053
Non-GAAP revenue	$	35,898	$	33,116	$	29,861	$	28,049		$	129,530	$	106,164

LIMELIGHT NETWORKS, INC.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)

(In thousands)

(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007			September 30, 2007			December 31, 2008			December 31, 2007
GAAP net loss	$	(13,942	)	$	(15,352	)	$	(55,345	)	$	(3,125	)	$	(63,067	)	$	(73,020	)
Deferred revenue		—			—			729			(1,141	)		—			3,053
Deferred cost of traffic and services		—			—			21			649			—			(265	)
Provision for litigation		1,295			2,343			48,130			—			17,515			48,130
Share-based compensation		5,508			4,305			3,625			3,955			18,058			18,910
Litigation defense expenses		4,576			8,189			2,772			2,002			20,799			7,295
Non-GAAP net (loss) income	$	(2,563	)	$	(515	)	$	(68	)	$	2,340		$	(6,695	)	$	4,103

LIMELIGHT NETWORKS, INC.

Reconciliation of GAAP Net Income (Loss) to EBITDA to Adjusted EBITDA

(In thousands)

(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31, 2008			September 30, 2008			December 31, 2007			September 30, 2007			December 31, 2008			December 31, 2007
GAAP net loss	$	(13,942	)	$	(15,352	)	$	(55,345	)	$	(3,125	)	$	(63,067	)	$	(73,020	)
Add: depreciation and amortization		7,317			6,950			5,707			5,870			27,031			21,596
Add: interest expense		11			11			6			18			55			1,418
Less: interest and other income		(294	)		(1,613	)		(1,858	)		(2,490	)		(4,927	)		(5,009	)
Plus income tax (benefit) expense		94			130			1,799			181			16			2,401
EBITDA		(6,814	)		(9,874	)		(49,691	)		454			(40,892	)		(52,614	)
Add: deferred revenue		—			—			729			(1,141	)		—			3,053
Add: provision for litigation		1,295			2,343			48,130			—			17,515			48,130
Add: share-based compensation		5,508			4,305			3,625			3,955			18,058			18,910
Add: litigation defense expenses		4,576			8,189			2,772			2,002			20,799			7,295
Less: deferred traffic and service costs		—			—			(21	)		(649	)		—			265
Adjusted EBITDA	$	4,565		$	4,963		$	5,586		$	5,919		$	15,480		$	24,509

Conference Call

Management will host a quarterly conference call for investors beginning at 8:00 a.m. ET (5 a.m. PT) on February 26, 2009. This call can be accessed toll-free at 1-866-272-9941 within the United States or 1-617-213-8895 outside of the U.S. using Conference ID 76676134.

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 first quarter of 2009, 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.

# # #

* Source: Frost & Sullivan, Worldwide Content Delivery Markets, January 2009

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) 2009 Limelight Networks, Inc. All rights reserved. All product or service names are the property of their respective owners

Contact:

Paul Alfieri of Limelight Networks, Inc.

+1-917-297-4241

palfieri@llnw.com