Edgio (EGIOQ) 8-K Limelight Networks(TM) Reports Third Quarter 2009 Results

Exhibit 99.1

Limelight Networks(TM) Reports Third Quarter 2009 Results

• Revenue of $32.5 million

• Launch of next-generation XD Platform, with Adaptive Intelligence, to provide advanced levels of performance and increased insight into real-time Internet and delivery conditions

• Launch of LimelightREACH and LimelightADS, two new services that provide turnkey capabilities for customizing and monetizing media delivery on mobile and other connected devices

TEMPE, AZ—(Marketwire - November 04, 2009) - Limelight Networks, Inc. (NASDAQ:LLNW) today reported third quarter 2009 financial results.

“The Internet continues to transform and advance the way people live, work and play around the world. Tomorrow’s Internet will involve more real-time data flow and content consumption across a growing mix of computers, laptops, netbooks, game consoles, televisions, set-top boxes, and mobile devices, the combination of which will allow consumers to enjoy content, access information and conduct transactions anytime, anywhere. With our recently announced XD Platform and the mobility and monetization solutions we released during the quarter, we are positioning Limelight Networks to be a core provider of cloud-based services within this transformed world, helping forward-thinking media, entertainment, enterprise and government organizations leverage the next-generation Internet’s capabilities to differentiate from their competitors and better serve their constituents,” said Jeff Lunsford, CEO of Limelight Networks.

Financial Highlights

For the third quarter of 2009, the company reported revenue of $32.5 million, up 1 percent from $32.3 million in the second quarter of 2009, and EBITDA, adjusted for share-based compensation and litigation costs, of $5.8 million.

Non-GAAP net loss, before stock based compensation and litigation costs, was $.6 million or 1 cent per basic share. GAAP net loss was $5.2 million, or 6 cents per basic share.

Capital investments were $10.6 million. The Company ended the quarter with no bank debt and approximately $153 million in cash and short-term marketable securities. A reconciliation of GAAP to non-GAAP net income is included in the attached tables.

Fourth-Quarter Outlook

Limelight Networks anticipates fourth quarter revenue to be in the range of $32.5 million to $34 million.

LIMELIGHT NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	September 30, 2009			December 31, 2008
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	102,447		$	138,180
Marketable securities		50,367			36,463
Accounts receivable, net of reserves of $9,149 and $7,565 at September 30, 2009 and December 31, 2008, respectively		27,692			33,482
Income taxes receivable		184			7
Prepaid expenses and other current assets		9,206			7,834
Total current assets		189,896			215,966
Property and equipment, net		39,653			40,185
Marketable securities, less current portion		16			13
Goodwill		619			—
Other intangible assets, net		404			—
Other assets		9,048			628
Total assets	$	239,636		$	256,792
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	7,180		$	8,920
Deferred revenue, current portion		12,077			9,865
Provision for litigation		—			65,645
Other current liabilities		8,905			14,928
Total current liabilities		28,162			99,358
Deferred revenue, less current portion		3,006			7,303
Total liabilities		31,168			106,661
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; 84,667 and 83,405 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively		85			83
Additional paid-in capital		304,466			290,593
Accumulated other comprehensive income		105			260
Accumulated deficit		(96,188	)		(140,805	)
Total stockholders’ equity		208,468			150,131
Total liabilities and stockholders’ equity	$	239,636		$	256,792

LIMELIGHT NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended												Nine Months Ended
	September 30, 2009			June 30, 2009			September 30, 2008			June 30, 2008			September 30, 2009			September 30, 2008
Revenue	$	32,530		$	32,333		$	33,116		$	30,314		$	98,038		$	93,632
Costs and operating expenses
Cost of revenue*†		20,907			21,078			21,557			19,751			63,456			61,980
General and administrative*†		7,032			6,937			15,455			9,463			26,413			38,247
Sales and marketing*		8,060			7,716			8,577			8,965			23,915			25,684
Research & development*		2,024			1,944			2,008			1,694			5,878			5,293
Provision for litigation		—			—			2,343			6,743			(65,645	)		16,220
Total costs and operating expenses		38,023			37,675			49,940			46,616			54,017			147,424
Operating income (loss)		(5,493	)		(5,342	)		(16,824	)		(16,302	)		44,021			(53,792	)
Interest expense		(11	)		(11	)		(11	)		(11	)		(33	)		(43	)
Interest income		330			337			1,203			1,334			1,050			4,428
Other income (expense)		15			(111	)		410			(377	)		131			203
Income (loss) before taxes		(5,159	)		(5,127	)		(15,222	)		(15,356	)		45,169			(49,204	)
Income tax expense (benefit)		61			171			130			(25	)		552			(78	)
Net income (loss)	$	(5,220	)	$	(5,298	)	$	(15,352	)	$	(15,331	)	$	44,617		$	(49,126	)
Net income (loss) per share:
Basic	$	(0.06	)	$	(0.06	)	$	(0.18	)	$	(0.18	)	$	0.53		$	(0.59	)
Diluted	$	(0.06	)	$	(0.06	)	$	(0.18	)	$	(0.18	)	$	0.51		$	(0.59	)
Shares used in per share calculations:
Basic		84,489			84,033			83,022			82,889			84,012			82,845
Diluted		84,489			84,033			83,022			82,889			87,708			82,845

* 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											Nine Months Ended
	September 30, 2009			June 30, 2009		September 30, 2008			June 30, 2008			September 30, 2009			September 30, 2008
Supplemental financial data (in thousands):
Share-based compensation:
Cost of revenues	$	638		$	582	$	594		$	558		$	1,772		$	1,658
General and administrative		1,805			1,820		1,669			1,698			5,755			5,031
Sales and marketing		1,293			1,253		1,400			1,431			3,734			4,137
Research and development		633			626		642			598			1,876			1,723
Total share-based compensation	$	4,369		$	4,281	$	4,305		$	4,285		$	13,137		$	12,549
Depreciation and amortization:
Network-related depreciation	$	6,018		$	6,133	$	6,607		$	6,192		$	18,699		$	18,812
Other depreciation		627			532		343			311			1,699			901
Total depreciation and amortization	$	6,645		$	6,665	$	6,950		$	6,503		$	20,398		$	19,713
Capital expenditures:
Capital expenditures (cash and accrual)	$	11,070		$	4,113	$	6,803		$	5,013		$	19,755		$	14,911
Net (decrease) increase in cash, cash equivalents and marketable securities	$	(11,497	)	$	2,331	$	(7,844	)	$	(10,194	)	$	(21,826	)	$	(20,513	)
End of period statistics:
Approximate number of active customers		1,370			1,370		1,304			1,291			1,370			1,304
Number of employees		321			301		285			250			321			285

LIMELIGHT NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended												Nine Months Ended
	September 30, 2009			June 30, 2009			September 30, 2008			June 30, 2008			September 30, 2009			September 30, 2008
Cash flows from operating activities:
Net income (loss)	$	(5,220	)	$	(5,298	)	$	(15,353	)	$	(15,331	)	$	44,617		$	(49,126	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization		6,645			6,665			6,950			6,503			20,398			19,713
Share-based compensation		4,369			4,281			4,305			4,285			13,137			12,549
Deferred income tax (benefit) expense		—			—			129			23			—			(82	)
Provision for litigation		—			—			2,343			6,743			(65,645	)		16,220
(Income) loss on foreign currency exchange		7			205			(30	)		12			181			(18	)
Accounts receivable charges		329			622			1,802			1,925			4,239			5,289
Accretion of marketable securities		(298	)		(157	)		11			21			(455	)		(421	)
Loss on marketable securities		—			—			—			16			—			71
Changes in operating assets and liabilities:
Accounts receivable		(1,648	)		7,281			(11,006	)		(1,880	)		1,793			(15,157	)
Prepaid expenses and other current assets		(1,475	)		721			417			(4,452	)		(1,347	)		(3,948	)
Income taxes receivable		(159	)		140			8			(129	)		(176	)		473
Other assets		(4,152	)		149			153			67			(8,314	)		784
Accounts payable		244			(4,219	)		2,348			(73	)		(5,198	)		(2,359	)
Accounts payable, related parties		—			—			—			(150	)		—			(230	)
Deferred revenue		(291	)		(972	)		4,799			(774	)		(2,085	)		4,326
Other current liabilities		358			(1,918	)		3,555			(3,859	)		(6,704	)		4,733
Other long term liabilities		—			—			(64	)		64			—			—
Net cash provided by (used in) operating activities		(1,291	)		7,500			367			(6,989	)		(5,559	)		(7,183	)
Cash flows from investing activities:
Purchases of property and equipment		(10,586	)		(5,308	)		(7,870	)		(4,231	)		(16,648	)		(14,536	)
Purchase of marketable securities		(32,905	)		(12,830	)		—			(30,400	)		(45,735	)		(65,125	)
Sale of marketable securities		2,000			9,100			16,000			34,825			32,400			95,025
Cash acquired in business acquisition		—			22			—			—			22			—
Net cash provided by (used in) investing activities		(41,491	)		(9,016	)		8,130			194			(29,961	)		15,364
Cash flows from financing activities:
Escrow funds returned from share repurchase		—			—			—			1,070			—			1,070
Proceeds from exercise of stock options and warrants		72			92			31			53			240			191
Net cash provided by financing activities		72			92			31			1,123			240			1,261
Effect of exchange rate changes on cash and cash equivalents		(5	)		(205	)		(223	)		259			(453	)		(120	)
Net increase
(decrease) in cash and cash equivalents		(42,715	)		(1,629	)		8,305			(5,413	)		(35,733	)		9,322
Cash and cash equivalents, beginning of period		145,162			146,791			114,841			120,254			138,180			113,824
Cash and cash equivalents, end of period	$	102,447		$	145,162		$	123,146		$	114,841		$	102,447		$	123,146

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income (loss) and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income (loss) to be an important indicator of overall business performance because it allows us to illustrate the impact of 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 believe that EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors’ use of operating performance comparisons from period to period. In addition, it should be noted that our performance-based executive officer bonus structure is tied closely to our performance as measured in part by certain non-GAAP financial measures.

The terms Non-GAAP net income (loss), EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs 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 net income (loss), EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income (loss), EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs 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 EBITDA adjusted for share-based compensation and litigation and damage costs 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;

• 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 EBITDA adjusted for share-based compensation and litigation and damage costs 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 EBITDA adjusted for share-based compensation and litigation and damage costs 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 (loss) and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management’s analysis of business performance. Non-GAAP Net Income (loss), EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs 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.

LIMELIGHT NETWORKS, INC.

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

(In thousands)

(Unaudited)

	Three Months Ended												Nine Months Ended
	September 30, 2009			June 30, 2009			September 30, 2008			June 30, 2008			September 30, 2009			September 30, 2008
GAAP net income (loss)	$	(5,220	)	$	(5,298	)	$	(15,352	)	$	(15,331	)	$	44,617		$	(49,126	)
Provision for litigation		—			—			2,343			6,743			(65,645	)		16,220
Share-based compensation		4,369			4,281			4,305			4,285			13,137			12,549
Litigation defense expenses		273			367			8,189			2,667			4,585			16,222
Non-GAAP net loss	$	(578	)	$	(650	)	$	(515	)	$	(1,636	)	$	(3,306	)	$	(4,135	)

LIMELIGHT NETWORKS, INC.

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												Nine Months Ended
	September 30, 2009			June 30, 2009			September 30, 2008			June 30, 2008			September 30, 2009			September 30, 2008
GAAP net income (loss)	$	(5,220	)	$	(5,298	)	$	(15,352	)	$	(15,331	)	$	44,617		$	(49,126	)
Add: depreciation and amortization		6,645			6,665			6,950			6,503			20,398			19,713
Add: interest expense		11			11			11			11			33			43
Less: interest and other income		(346	)		(226	)		(1,613	)		(957	)		(1,181	)		(4,631	)
Plus income tax (benefit) expense		61			171			130			(25	)		552			(78	)
EBITDA		1,151			1,323			(9,874	)		(9,799	)		64,419			(34,079	)
Add: provision for litigation		—			—			2,343			6,743			(65,645	)		16,220
Add: share-based compensation		4,369			4,281			4,305			4,285			13,137			12,549
Add: litigation defense expenses		273			367			8,189			2,667			4,585			16,222
EBITDA adjusted for share-based compensation, litigation and damage costs	$	5,793		$	5,971		$	4,963		$	3,896		$	16,496		$	10,912

Conference Call

At approximately 4:30 p.m. EST (1:30 p.m. PST) today, management will host a quarterly conference call for investors. Access to the call will be provided by both telephone dial-in and via live Internet broadcast.

To access this conference call by telephone dial 1-866-831-6234 within the United States or 1-617-213-8854 outside of the U.S. using passcode 80947579. To access the live Internet broadcast, visithttp://www.llnw.com. A replay of the call will also be available fromhttp://www.llnw.com for one week following the conclusion of the event.

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 expenses, 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.

About Limelight Networks, Inc.

Limelight Networks, Inc. (NASDAQ:LLNW) is trusted by the world’s most innovative enterprise, entertainment, technology, and software brands to improve the performance and profitability of web sites and end-user experiences. Our scalable, on-demand managed infrastructure solutions provide global reach and consistently high availability, by routing traffic over a private fiber-optic backbone rather than through the often-congested, unpredictable public Internet. For more information, visit our web site (http://www.limelightnetworks.com), read our blog (http://blog.llnw.com), or follow @llnw (http://www.twitter.com/llnw) on Twitter.

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