Edgio (EGIOQ) 10-Q 28 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 19, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	LIMELIGHT NETWORKS, INC.
Entity Central Index Key	1,391,127
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		103,414,603

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 24,141	$ 44,680
Marketable securities	0	28,322
Accounts receivable, net	27,452	26,795
Income taxes receivable	186	170
Deferred income taxes	83	89
Prepaid expenses and other current assets	6,054	9,578
Total current assets	57,916	109,634
Property and equipment, net	33,330	36,143
Marketable securities, less current portion	40	40
Restricted cash	62,790	0
Deferred income taxes, less current portion	1,207	1,252
Goodwill	76,370	76,143
Other assets	2,071	2,415
Total assets	233,724	225,627
Current liabilities:
Accounts payable	7,585	9,137
Deferred revenue	3,379	2,890
Capital lease obligations	821	466
Income taxes payable	85	204
Other current liabilities	8,619	10,857
Total current liabilities	20,489	23,554
Long-term Debt, Excluding Current Maturities	12,790	0
Capital lease obligations, less current portion	2,345	1,436
Deferred income taxes	141	137
Deferred revenue, less current portion	77	92
Other long-term liabilities	2,137	2,311
Total liabilities	$ 37,979	$ 27,530
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding	$ 0	$ 0
Common stock, $0.001 par value; 300,000 shares authorized; 103,399 and 102,299 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	103	102
Additional paid-in capital	480,092	477,202
Accumulated other comprehensive loss	(10,109)	(10,812)
Accumulated deficit	(274,341)	(268,395)
Total stockholders’ equity	195,745	198,097
Total liabilities and stockholders’ equity	$ 233,724	$ 225,627

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Convertible Preferred Stock, Par Value (in dollars per share)	$ 0.001	$ 0.001
Convertible Preferred Stock, Shares Authorized	7,500,000	7,500,000
Convertible Preferred Stock, Shares Issued	0	0
Convertible Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares Issued	103,399,000	102,299,000
Common Stock, Shares Outstanding	103,399,000	102,299,000

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues		$ 41,422	$ 42,329
Cost of revenue:
Cost of services	[1]	20,110	21,657
Depreciation — network		4,668	4,153
Total cost of revenue		24,778	25,810
Gross profit		16,644	16,519
Operating expenses:
General and administrative		6,808	6,850
Sales and marketing		8,903	10,276
Research and development		6,325	6,263
Depreciation and amortization		623	640
Total operating expenses		22,659	24,029
Operating loss		(6,015)	(7,510)
Other income (expense):
Interest expense		(179)	(4)
Interest income		6	74
Other, net		400	1,812
Total other income (expense)		227	1,882
Loss before income taxes		(5,788)	(5,628)
Income tax expense		158	55
Net loss		$ (5,946)	$ (5,683)
Net loss per share, Basic and diluted:
Basic and diluted (in usd per share)		$ (0.06)	$ (0.06)
Weighted average shares used in per share calculation:
Basic and diluted weighted average outstanding shares of common stock (in shares)		102,693	98,636
[1]	Cost of services excludes amortization related to intangibles, including existing technologies, and customer relationships, which are included in depreciation and amortization.

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,946)	$ (5,683)
Other comprehensive income (loss), net of tax:
Unrealized gain on investments	0	61
Foreign exchange translation gain (loss)	659	(3,071)
Other comprehensive gain (loss), net of tax	659	(3,010)
Comprehensive loss	$ (5,287)	$ (8,693)

Unaudited Consolidated Stateme6

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net loss	$ (5,946)	$ (5,683)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	5,291	4,793
Share-based compensation	3,496	3,069
Foreign currency remeasurement gain	(301)	(1,691)
Deferred income taxes	82	(53)
Accounts receivable charges	(116)	246
Amortization of premium on marketable securities	19	58
Realized loss on marketable securities	32	0
Changes in operating assets and liabilities:
Accounts receivable	(540)	(4,980)
Prepaid expenses and other current assets	3,583	1,150
Income taxes receivable	(13)	(2)
Other assets	342	792
Accounts payable and other current liabilities	(4,005)	(1,723)
Deferred revenue	473	(203)
Income taxes payable	(127)	(52)
Other long term liabilities	900	(269)
Net cash provided by (used in) operating activities	3,170	(4,548)
Investing activities
Purchases of marketable securities	0	(9,956)
Sale and maturities of marketable securities	28,315	9,840
Restricted cash	(62,790)	0
Purchases of property and equipment	(1,421)	(6,666)
Net cash used in investing activities	(35,896)	(6,782)
Financing activities
Principal payments on capital lease obligations	(159)	(358)
Payments of employee tax withholdings related to restricted stock vesting	(646)	(1,107)
Cash paid for purchase of common stock	0	(957)
Proceeds from line of credit	12,790	0
Proceeds from employee stock plans	43	1,975
Net cash provided by (used in) financing activities	12,028	(447)
Effect of exchange rate changes on cash and cash equivalents	159	(482)
Net decrease in cash and cash equivalents	(20,539)	(12,259)
Cash and cash equivalents, beginning of period	44,680	57,767
Cash and cash equivalents, end of period	24,141	45,508
Supplemental disclosure of cash flow information
Cash paid during the period for interest	154	4
Cash paid during the period for income taxes, net of refunds	224	178
Property and equipment acquired through capital lease	$ 1,521	$ 0

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business Limelight operates a globally distributed, high-performance network and provides a suite of integrated services marketed under the Orchestrate Platform which include content delivery, video content management, website and web application acceleration, website and content security, and cloud storage services. We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any future periods. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2015. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any other future periods. Recent Accounting Standards Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. GAAP for a customer's accounting for service contracts. We adopted this guidance effective January 1, 2016. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. Accordingly, public business entities should apply the guidance in ASU 2014-09 to annual reporting periods (including interim periods within those periods) beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The standard permits the use of the retrospective or the modified approach method. We have not yet selected a transition method, and are currently in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements and disclosures. In November 2015, the FASB issued ASU 2015-17, which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. ASU 2015-17 simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. At this time we do not anticipate early adoption of this ASU, and we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-08, which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. We are in the process of evaluating the potential impact that adopting this new accounting standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, which updated guidance include changes to simplify the codification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements.

Investments in Marketable Secur

Investments in Marketable Securities	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investments in Marketable Securities	Investments in Marketable Securities During the quarter ended March 31, 2016, we sold the majority of our marketable securities. The following is a summary of marketable securities, designated as available-for-sale, at March 31, 2016 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposits $ 40 $ — $ — $ 40 Total marketable securities $ 40 $ — $ — $ 40 The amortized cost and estimated fair value of marketable securities at March 31, 2016 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ — $ — $ — $ — Due after one year and through five years 40 — — 40 $ 40 $ — $ — $ 40 The following is a summary of marketable securities, designated as available-for-sale, at December 31, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 12,480 $ 1 $ 17 $ 12,464 Corporate notes and bonds 15,940 2 44 15,898 Total marketable securities $ 28,420 $ 3 $ 61 $ 28,362 The amortized cost and estimated fair value of marketable securities at December 31, 2015 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 18,075 $ 2 $ 12 $ 18,065 Due after one year and through five years 10,345 1 49 10,297 $ 28,420 $ 3 $ 61 $ 28,362

Accounts Receivable, net

Accounts Receivable, net	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Accounts Receivable, net	Accounts Receivable, net Accounts receivable, net include: March 31, December 31, 2016 2015 Accounts receivable $ 28,914 $ 28,599 Less: credit allowance (350 ) (460 ) Less: allowance for doubtful accounts (1,112 ) (1,344 ) Total accounts receivable, net $ 27,452 $ 26,795

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include: March 31, December 31, 2016 2015 Prepaid bandwidth and backbone $ 3,485 $ 2,417 VAT receivable 1,152 2,720 Prepaid expenses and insurance 602 3,641 Vendor deposits and other 815 800 Total prepaid expenses and other current assets $ 6,054 $ 9,578

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net include: March 31, December 31, 2016 2015 Network equipment $ 127,444 $ 129,172 Computer equipment and software 11,585 11,408 Furniture and fixtures 2,457 2,472 Leasehold improvements 4,977 4,976 Other equipment 166 166 Total property and equipment 146,629 148,194 Less: accumulated depreciation and amortization (113,299 ) (112,051 ) Total property and equipment, net $ 33,330 $ 36,143 Depreciation and amortization expense related to property and equipment classified in operating expense was $617 and $443 for the three months ended March 31, 2016 and 2015 , respectively.

Restricted Cash

Restricted Cash	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Restricted Cash	Restricted Cash We consider cash that is legally restricted and cash that is held as a compensative balance for letters of credit arrangements as restricted cash. As of March 31, 2016, restricted cash of $62,790 represents collateral for the letter of credit for the upper end of our range of potential loss in our on-going intellectual property dispute with Akamai Technologies, Inc. Refer to Note 12 Contingencies - Legal Matters for further information.

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill We have recorded goodwill as a result of past business acquisitions. Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. In each of our acquisitions, the objective of the acquisition was to expand our product offerings and customer base and to achieve synergies related to cross selling opportunities, all of which contributed to the recognition of goodwill. We test goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that goodwill might be impaired. We concluded that we have one reporting unit and assigned the entire balance of goodwill to this reporting unit. The estimated fair value of the reporting unit is determined using our market capitalization as of our annual impairment assessment date or each reporting date if circumstances indicate the goodwill might be impaired. Items that could reasonably be expected to negatively affect key assumptions used in estimating fair value include but are not limited to: • sustained decline in our stock price due to a decline in our financial performance due to the loss of key customers, loss of key personnel, emergence of new technologies or new competitors and/or unfavorable outcomes of intellectual property disputes; • decline in overall market or economic conditions leading to a decline in our stock price; and • decline in observed control premiums paid in business combinations involving comparable companies. No interim indicators of impairment were identified as of March 31, 2016. Foreign currency translation adjustments increased the carrying amount of goodwill for the three months ended March 31, 2016 by $ 227 .

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2016
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	Other Current Liabilities Other current liabilities include: March 31, December 31, 2016 2015 Accrued compensation and benefits $ 3,511 $ 4,786 Accrued cost of revenue 2,160 2,698 Deferred rent 685 782 Accrued legal fees 201 143 Other accrued expenses 2,062 2,448 Total other current liabilities $ 8,619 $ 10,857

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Line of Credit	Line of Credit On November 2, 2015, we entered into a Loan and Security Agreement (the Credit Agreement) with Silicon Valley Bank (SVB). The Credit Agreement provides for revolving credit borrowings up to a maximum principal amount of $25,000 . We are subject to a borrowing base calculation to determine the amount available to us. Our borrowing capacity is the lesser of the commitment amount or 80% of eligible accounts receivable. All outstanding borrowings owed under the Credit Agreement become due and payable no later than the final maturity date of November 2, 2017. We had no outstanding borrowings at December 31, 2015, and had availability under the Credit Agreement of approximately $18,000 . As of March 31, 2016, we had drawn $12,790 against the line of credit and we had approximately $6,400 available under the line of credit. Borrowings under the Credit Agreement bear interest at our option of one, two, three or six-month LIBOR plus a margin of 2.75% or an Alternative Base Rate (ABR), which is defined as the higher of (a) Wall Street Journal prime rate or (b) Federal Funds Rate plus 0.50% , plus a margin of 0.50% or 1.50% depending on our minimum liquidity, as defined in the Credit Agreement. If we fall below a minimum liquidity of $17,500 , we are required to use the ABR interest rate. We incurred a commitment fee (issuance costs) of 0.25% upon entering into the Credit Agreement and 0.20% to be paid on the one year anniversary of closing. In addition, there is an unused line fee of 0.375% if our minimum liquidity is greater than $17,500 . If our minimum liquidity falls below $17,500 , the unused line fee is 0.250% . Commitment fees are included in prepaid expenses and other current assets and as amortized are charged to interest expense. During the quarter ended March 31, 2016, interest expense was $73 and commitment fees amortization was $26 . Any borrowings are secured by essentially all of our domestic personal property, with a negative pledge on intellectual property. SVB’s security interest in our foreign subsidiaries is limited to 65% of voting stock of each such foreign subsidiary. The Credit Agreement contains a covenant that requires us to maintain a minimum tangible net worth of $100,000 . Tangible net worth is defined as total stockholders’ equity less cash held by our foreign subsidiaries, goodwill and other intangible assets. The tangible net worth requirement is adjusted by up to $52,500 in the event we record a provision for or make a payment related to the Akamai ‘703 Litigation. We are also subject to certain customary limitations on our ability to, among other things, incur debt, grant liens, make acquisitions and other investments, make certain restricted payments such as dividends, dispose of assets or undergo a change in control. In addition, the Credit Agreement contains a covenant limiting the maximum unfinanced capital expenditures amount to $25,000 per annum. As of March 31, 2016, we were in compliance with all covenants under the Credit Agreement.

Other Long Term Liabilities

Other Long Term Liabilities	3 Months Ended
	Mar. 31, 2016
Other Liabilities Disclosure [Abstract]
Other Long Term Liabilities	Other Long Term Liabilities Other long term liabilities include: March 31, December 31, 2016 2015 Deferred rent $ 1,743 $ 1,907 Income taxes payable 394 404 Total other long term liabilities $ 2,137 $ 2,311

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Legal Matters Akamai ‘703 Litigation In June 2006, Akamai Technologies, Inc. and the Massachusetts Institute of Technology filed a lawsuit against us in the United States District Court for the District of Massachusetts alleging that we were infringing multiple patents assigned to MIT and exclusively licensed by MIT to Akamai. In February 2008, a jury returned a verdict in this lawsuit, finding that we infringed four claims of U.S. Patent No. 6,108,703 (the ’703 patent) and awarded Akamai damages of approximately $45,500 , which included lost profits, reasonable royalties and price erosion damages for the period April 2005 through December 31, 2007. On April 24, 2009, the court granted our motion for judgment as a matter of law, thus overturning the jury’s verdict finding us liable for infringing the ‘703 patent. On August 13, 2015, after more than six years of appeals by both Akamai and us in the Federal Circuit and the Supreme Court of the United States, the Federal Circuit issued an opinion establishing a new standard for direct infringement in a divided actor scenario. The Federal Circuit then reinstating the 2008 jury verdict that we were liable for infringement of the '703 patent and denied any remaining legacy appeals. The case was remanded back to the District Court for the District of Massachusetts on December 23, 2015, to resolve questions of supplemental damages, applicable interest on the existing damages award and entry of final judgment, among other things. After a series of motions filed by the parties in District Court, Akamai agreed to waive its right to supplemental damages, which limited the maximum potential damages for us to approximately $62,790 plus future accruing interest (if any). We also petitioned review by the Supreme Court of the United States of the Federal Circuit’s decision to reinstate the jury verdict. Our request for review was denied on April 18, 2016. Our motion seeking to challenge the validity of the ‘703 patent based on intervening changes in law was denied on April 25, 2016 by the District Court, which we believe was reversible error. We therefore intend to appeal that decision to the Federal Circuit. If our appeal is successful, we could eliminate all potential damages in this case. Based on our belief that the District Court committed reversible error in its April 25, 2016 denial, we believe a loss is not probable, thus a liability has not been recorded with respect to this matter. We believe $62,790 in total damages, plus accrued and future accruing interest (if any) represents the upper end of our range of potential loss in this case. Legal and other expenses associated with this case have been significant. We include these litigation expenses in general and administrative expenses as incurred, as reported in the consolidated statement of operations. Akamai and XO Litigation On November 30, 2015, we filed a lawsuit against Akamai and XO Communications in the District Court for the Eastern District of Virginia alleging the infringement of our patents covering a broad range of inventions that we believe are critical to the effective and efficient delivery of bytes by a content delivery network. The trial date in this case is scheduled for January 3, 2017.We intend to vigorously protect our intellectual property rights in this matter. 2016 Akamai Litigation On February 16, 2016, Akamai filed a complaint against us in the District Court for the District of Massachusetts alleging infringement of three of its patents. We filed our answer to the complaint, denying each of the allegations of infringement, on April 7, 2016. We intend to vigorously defend against these claims. Other Matters We are subject to various other legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows. Litigation relating to the content delivery services industry is not uncommon, and we are, and from time to time have been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future. Taxes We are subject to indirect taxation in various states and foreign jurisdictions. Laws and regulations that apply to communications and commerce conducted over the Internet are becoming more prevalent, both in the United States and internationally, and may impose additional burdens on us conducting business online or providing Internet-related services. Increased regulation could negatively affect our business directly, as well as the businesses of our customers, which could reduce their demand for our services. For example, tax authorities in various states and abroad may impose taxes on the Internet-related revenue we generate based on regulations currently being applied to similar but not directly comparable industries. There are many transactions and calculations where the ultimate tax determination is uncertain. In addition, domestic and international taxation laws are subject to change. In the future, we may come under audit, which could result in changes to our tax estimates. We believe we maintain adequate tax reserves to offset potential liabilities that may arise upon audit. Although we believe our tax estimates and associated reserves are reasonable, the final determination of tax audits and any related litigation could be materially different than the amounts established for tax contingencies. To the extent these estimates ultimately prove to be inaccurate, the associated reserves would be adjusted, resulting in the recording of a benefit or expense in the period in which a change in estimate or a final determination is made.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share We calculate basic and diluted loss per weighted average share. We use the weighted-average number of shares of common stock outstanding during the period for the computation of basic earnings per share. Diluted earnings per share include the dilutive effect of all potentially dilutive common stock, including awards granted under our equity incentive compensation plans, in the weighted-average number of shares of common stock outstanding. The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated: Three Months Ended March 31, 2016 2015 Net loss $ (5,946 ) $ (5,683 ) Basic and diluted weighted average outstanding shares of common stock 102,693 98,636 Basic and diluted net loss per share: $ (0.06 ) $ (0.06 ) For the three months ended March 31, 2016 and 2015 , the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended March 31, 2016 2015 Employee stock purchase plan 424 156 Stock options 134 1,261 Restricted stock units 524 2,698 1,082 4,115

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock On February 12, 2014, our board of directors authorized a $15,000 share repurchase program. Under this program, we may repurchase shares periodically in the open market or through privately negotiated transactions, in accordance with applicable securities rules regarding issuer repurchases. We did not purchase any shares during the three months ended March 31, 2016. During the three months ended March 31 2015, we purchased and canceled 293 shares for $818 , including commissions and expenses. All repurchased shares were canceled and returned to authorized but unissued status. Employee Stock Purchase Plan In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP). The ESPP allows participants to purchase our common stock at a 15% discount of the lower of the beginning or end of the offering period using the closing price on that day. We did not issue any shares under the ESPP during the three months ended March 31, 2016. As of March 31, 2016, shares reserved for issuance to employees under this plan totaled 2,642 , and we held employee contributions of $602 (included in other current liabilities) for future purchases under the ESPP. Preferred Stock Our board of directors has authorized the issuance of up to 7,500 shares of preferred stock at March 31, 2016. The preferred stock may be issued in one or more series pursuant to a resolution or resolutions providing for such issuance duly adopted by the board of directors. As of March 31, 2016, the board of directors had not adopted any resolutions for the issuance of preferred stock.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2016 , was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2015 $ (10,768 ) $ (44 ) $ (10,812 ) Other comprehensive income before reclassifications 659 — 659 Amounts reclassified from accumulated other comprehensive income (loss) — 44 44 Net current period other comprehensive income 659 44 703 Balance, March 31, 2016 $ (10,109 ) $ — $ (10,109 )

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation The following table summarizes the components of share-based compensation expense included in our consolidated statement of operations: Three Months Ended March 31, 2016 2015 Share-based compensation expense by type: Stock options $ 983 $ 1,182 Restricted stock units 2,360 1,813 ESPP 153 74 Total share-based compensation expense $ 3,496 $ 3,069 Share-based compensation expense included in the consolidated statements of operations: Cost of services $ 473 $ 513 General and administrative expense 1,826 1,406 Sales and marketing expense 737 689 Research and development expense 460 461 Total share-based compensation expense $ 3,496 $ 3,069 Unrecognized share-based compensation expense totaled approximately $20,586 at March 31, 2016 , of which $6,222 related to stock options and $14,364 related to restricted stock units. We currently expect to recognize share-based compensation expense of $8,313 during the remainder of 2016, $7,883 in 2017 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at March 31, 2016 .

Leases and Commitments

Leases and Commitments	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Leases and Commitments	Leases and Commitments Operating Leases We are committed to various non-cancellable operating leases for office space and office equipment which expire through 2022. Certain leases contain provisions for renewal options and rent escalations upon expiration of the initial lease terms. Approximate future minimum lease payments over the remaining lease periods as of March 31, 2016 , are as follows: Remainder of 2016 $ 2,995 2017 3,231 2018 3,009 2019 1,488 2020 566 Thereafter 414 Total minimum payments $ 11,703 Purchase Commitments We have long-term commitments for bandwidth usage and co-location with various networks and Internet service providers (ISPs). The following summarizes minimum commitments as of March 31, 2016 : Remainder of 2016 $ 26,638 2017 13,377 2018 2,822 2019 759 2020 70 Thereafter 8 Total minimum payments $ 43,674 Capital Leases We lease equipment under capital lease agreements which extend through 2020. As of March 31, 2016, and December 31, 2015 , the outstanding balance for capital leases was approximately $3,166 and $1,902 , respectively. We have recorded assets under capital lease obligations of approximately $3,416 and $1,679 , respectively, as of March 31, 2016 and December 31, 2015 . Related accumulated amortization totaled approximately $486 and $210 , respectively as of March 31, 2016 and December 31, 2015 . The assets acquired under capital leases and related accumulated amortization are included in property and equipment, net in the consolidated balance sheets. The related amortization is included in depreciation and amortization expense (operating expenses) in the consolidated statements of operations. Interest expense related to capital leases was approximately $35 and $4 , respectively, for the three months ended March 31, 2016 and 2015 . Future minimum capital lease payments at March 31, 2016 were as follows: Remainder of 2016 $ 615 2017 994 2018 994 2019 899 2020 47 Thereafter — Total 3,549 Amounts representing interest (383 ) Total minimum lease payments $ 3,166

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2016
Risks and Uncertainties [Abstract]
Concentrations	Concentrations During the three months ended March 31, 2016 and 2015, we had no customer who represented 10% or more of our total revenue. Revenue from customers located within the United States, our country of domicile, was $22,410 for the three months ended March 31, 2016 , compared to $25,611 for the three months ended March 31, 2015 . During the three months ended March 31, 2016 , we had three countries, based on customer location, the United States, Japan, and the United Kingdom, that accounted for 10% or more of our total revenues. During the three months ended March 31, 2015, we had two countries, based on customer location, the United States and Japan that accounted for 10% or more of our total revenues.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income taxes	Income Taxes Income taxes for the interim periods presented have been included in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate. Based on an estimated annual effective tax rate and discrete items, income tax expense for the three months ended March 31, 2016 and 2015, was $158 and $55 , respectively. Income tax expense was different than the statutory income tax rate primarily due to us providing for a valuation allowance on deferred tax assets in certain jurisdictions, and the recording of state and foreign tax expense for the three month periods. We file income tax returns in jurisdictions with varying statutes of limitations. Tax years 2013 through 2015 remain subject to examination by federal tax authorities. Tax years 2012 through 2015 generally remain subject to examination by state tax authorities. As of March 31, 2016 , we are not under any federal or state examination for income taxes.

Segment Reporting and Geographi

Segment Reporting and Geographic Areas	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting and Geographic Areas	Segment Reporting and Geographic Areas Our chief operating decision maker (whom is our Chief Executive Officer) reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. We operate in one industry segment — content delivery and related services and we operate in three geographic areas — Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific. Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth our revenue by geographic area: Three Months Ended March 31, 2016 2015 Americas $ 24,008 58.0 % $ 27,259 64.4 % EMEA 8,912 21.5 % 8,049 19.0 % Asia Pacific 8,502 20.5 % 7,021 16.6 % Total revenue $ 41,422 100.0 % $ 42,329 100.0 % The following table sets forth long-lived assets by geographic area in which the assets are located: March 31, December 31, 2016 2015 Americas $ 18,595 $ 19,692 International 14,743 16,466 Total long-lived assets $ 33,338 $ 36,158

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements As of March 31, 2016 , and December 31, 2015 , we held certain assets and liabilities that were required to be measured at fair value on a recurring basis. The following is a summary of fair value measurements at March 31, 2016 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 1 $ 1 $ — $ — Certificate of deposit (1) 40 — 40 — Total assets measured at fair value $ 41 $ 1 $ 40 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2015 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 725 $ 725 $ — $ — Corporate notes and bonds (1) 15,898 — 15,898 — Certificate of deposit (1) 12,464 — 12,464 — Total assets measured at fair value $ 29,087 $ 725 $ 28,362 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The carrying amount of cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of short-term and long-term marketable securities approximates fair value as the securities are marked to market as of each balance sheet date with any unrealized gains and losses reported in stockholders’ equity. The carrying amount of accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term maturity of the amounts.

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any future periods. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2015. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any other future periods.
Recent Accounting Pronouncements	Recent Accounting Standards Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. GAAP for a customer's accounting for service contracts. We adopted this guidance effective January 1, 2016. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. Accordingly, public business entities should apply the guidance in ASU 2014-09 to annual reporting periods (including interim periods within those periods) beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The standard permits the use of the retrospective or the modified approach method. We have not yet selected a transition method, and are currently in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements and disclosures. In November 2015, the FASB issued ASU 2015-17, which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. ASU 2015-17 simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. At this time we do not anticipate early adoption of this ASU, and we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-08, which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. We are in the process of evaluating the potential impact that adopting this new accounting standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, which updated guidance include changes to simplify the codification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements.

Investments in Marketable Sec29

Investments in Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Summary of marketable securities (designated as available-for-sale)	The following is a summary of marketable securities, designated as available-for-sale, at March 31, 2016 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposits $ 40 $ — $ — $ 40 Total marketable securities $ 40 $ — $ — $ 40 The following is a summary of marketable securities, designated as available-for-sale, at December 31, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 12,480 $ 1 $ 17 $ 12,464 Corporate notes and bonds 15,940 2 44 15,898 Total marketable securities $ 28,420 $ 3 $ 61 $ 28,362
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity	The amortized cost and estimated fair value of marketable securities at December 31, 2015 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 18,075 $ 2 $ 12 $ 18,065 Due after one year and through five years 10,345 1 49 10,297 $ 28,420 $ 3 $ 61 $ 28,362 The amortized cost and estimated fair value of marketable securities at March 31, 2016 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ — $ — $ — $ — Due after one year and through five years 40 — — 40 $ 40 $ — $ — $ 40

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Summary of accounts receivable, net	Accounts receivable, net include: March 31, December 31, 2016 2015 Accounts receivable $ 28,914 $ 28,599 Less: credit allowance (350 ) (460 ) Less: allowance for doubtful accounts (1,112 ) (1,344 ) Total accounts receivable, net $ 27,452 $ 26,795

Prepaid Expenses and Other Cu31

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets include: March 31, December 31, 2016 2015 Prepaid bandwidth and backbone $ 3,485 $ 2,417 VAT receivable 1,152 2,720 Prepaid expenses and insurance 602 3,641 Vendor deposits and other 815 800 Total prepaid expenses and other current assets $ 6,054 $ 9,578

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net include: March 31, December 31, 2016 2015 Network equipment $ 127,444 $ 129,172 Computer equipment and software 11,585 11,408 Furniture and fixtures 2,457 2,472 Leasehold improvements 4,977 4,976 Other equipment 166 166 Total property and equipment 146,629 148,194 Less: accumulated depreciation and amortization (113,299 ) (112,051 ) Total property and equipment, net $ 33,330 $ 36,143

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Other Liabilities Disclosure [Abstract]
Other current liabilities	Other current liabilities include: March 31, December 31, 2016 2015 Accrued compensation and benefits $ 3,511 $ 4,786 Accrued cost of revenue 2,160 2,698 Deferred rent 685 782 Accrued legal fees 201 143 Other accrued expenses 2,062 2,448 Total other current liabilities $ 8,619 $ 10,857

Other Long Term Liabilities (Ta

Other Long Term Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Other Liabilities Disclosure [Abstract]
Other long term liabilities	Other long term liabilities include: March 31, December 31, 2016 2015 Deferred rent $ 1,743 $ 1,907 Income taxes payable 394 404 Total other long term liabilities $ 2,137 $ 2,311

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Computation of basic and diluted net income (loss) per share	The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated: Three Months Ended March 31, 2016 2015 Net loss $ (5,946 ) $ (5,683 ) Basic and diluted weighted average outstanding shares of common stock 102,693 98,636 Basic and diluted net loss per share: $ (0.06 ) $ (0.06 )
Schedule of antidilutive securities excluded from computation of earnings per share	For the three months ended March 31, 2016 and 2015 , the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended March 31, 2016 2015 Employee stock purchase plan 424 156 Stock options 134 1,261 Restricted stock units 524 2,698 1,082 4,115

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of accumulated other comprehensive loss	Changes in the components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2016 , was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2015 $ (10,768 ) $ (44 ) $ (10,812 ) Other comprehensive income before reclassifications 659 — 659 Amounts reclassified from accumulated other comprehensive income (loss) — 44 44 Net current period other comprehensive income 659 44 703 Balance, March 31, 2016 $ (10,109 ) $ — $ (10,109 )

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Components of share-based compensation expense	The following table summarizes the components of share-based compensation expense included in our consolidated statement of operations: Three Months Ended March 31, 2016 2015 Share-based compensation expense by type: Stock options $ 983 $ 1,182 Restricted stock units 2,360 1,813 ESPP 153 74 Total share-based compensation expense $ 3,496 $ 3,069 Share-based compensation expense included in the consolidated statements of operations: Cost of services $ 473 $ 513 General and administrative expense 1,826 1,406 Sales and marketing expense 737 689 Research and development expense 460 461 Total share-based compensation expense $ 3,496 $ 3,069

Leases and Commitments (Tables)

Leases and Commitments (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments over remaining lease periods	Approximate future minimum lease payments over the remaining lease periods as of March 31, 2016 , are as follows: Remainder of 2016 $ 2,995 2017 3,231 2018 3,009 2019 1,488 2020 566 Thereafter 414 Total minimum payments $ 11,703
Minimum Purchase commitments	The following summarizes minimum commitments as of March 31, 2016 : Remainder of 2016 $ 26,638 2017 13,377 2018 2,822 2019 759 2020 70 Thereafter 8 Total minimum payments $ 43,674
Future minimum capital lease payments	Future minimum capital lease payments at March 31, 2016 were as follows: Remainder of 2016 $ 615 2017 994 2018 994 2019 899 2020 47 Thereafter — Total 3,549 Amounts representing interest (383 ) Total minimum lease payments $ 3,166

Segment Reporting and Geograp39

Segment Reporting and Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Revenue earned by geographic area	Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth our revenue by geographic area: Three Months Ended March 31, 2016 2015 Americas $ 24,008 58.0 % $ 27,259 64.4 % EMEA 8,912 21.5 % 8,049 19.0 % Asia Pacific 8,502 20.5 % 7,021 16.6 % Total revenue $ 41,422 100.0 % $ 42,329 100.0 %
Long-lived assets by geographical area	The following table sets forth long-lived assets by geographic area in which the assets are located: March 31, December 31, 2016 2015 Americas $ 18,595 $ 19,692 International 14,743 16,466 Total long-lived assets $ 33,338 $ 36,158

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Summary of money market funds, marketable securities, other investment-related assets and current liabilities	The following is a summary of fair value measurements at March 31, 2016 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 1 $ 1 $ — $ — Certificate of deposit (1) 40 — 40 — Total assets measured at fair value $ 41 $ 1 $ 40 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2015 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 725 $ 725 $ — $ — Corporate notes and bonds (1) 15,898 — 15,898 — Certificate of deposit (1) 12,464 — 12,464 — Total assets measured at fair value $ 29,087 $ 725 $ 28,362 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents

Investments in Marketable Sec41

Investments in Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Summary of marketable securities (designated as available-for-sale)
Amortized Cost	$ 40	$ 28,420
Gross Unrealized Gains	0	3
Gross Unrealized Losses	0	61
Estimated Fair Value	40	28,362
Certificate of deposit [Member]
Summary of marketable securities (designated as available-for-sale)
Amortized Cost	40	12,480
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	17
Estimated Fair Value	$ 40	12,464
Corporate notes and bonds [Member]
Summary of marketable securities (designated as available-for-sale)
Amortized Cost		15,940
Gross Unrealized Gains		2
Gross Unrealized Losses		44
Estimated Fair Value		$ 15,898

Investments in Marketable Sec42

Investments in Marketable Securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity
Amortized Cost	$ 40	$ 28,420
Gross Unrealized Gains	0	3
Gross Unrealized Losses	0	61
Estimated Fair Value	40	28,362
Debt Securities [Member]
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity
Amortized Cost, Due in one year or less	0	18,075
Gross Unrealized Gains, Due in one year or less	0	2
Gross Unrealized Losses, Due in one year or less	0	12
Estimated Fair Value, Due in one year or less	0	18,065
Amortized Cost, Due after one year and through five years	40	10,345
Gross Unrealized Gains, Due after one year and through five years	0	1
Gross Unrealized Losses, Due after one year and through five years	0	49
Estimated Fair Value, Due after one year and through five years	40	10,297
Amortized Cost	40	28,420
Gross Unrealized Gains	0	3
Gross Unrealized Losses	0	61
Estimated Fair Value	$ 40	$ 28,362

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Summary of Accounts receivable, net
Accounts receivable	$ 28,914	$ 28,599
Less: credit allowance	(350)	(460)
Less: allowance for doubtful accounts	(1,112)	(1,344)
Total accounts receivable, net	$ 27,452	$ 26,795

Prepaid Expenses and Other Cu44

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid bandwidth and backbone	$ 3,485	$ 2,417
VAT receivable	1,152	2,720
Prepaid expenses and insurance	602	3,641
Vendor deposits and other	815	800
Total prepaid expenses and other current assets	$ 6,054	$ 9,578

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property and equipment, net
Property and equipment, gross	$ 146,629	$ 148,194
Less: accumulated depreciation and amortization	(113,299)	(112,051)
Total property and equipment, net	33,330	36,143
Network equipment [Member]
Property and equipment, net
Property and equipment, gross	127,444	129,172
Computer equipment and software [Member]
Property and equipment, net
Property and equipment, gross	11,585	11,408
Furniture and fixtures [Member]
Property and equipment, net
Property and equipment, gross	2,457	2,472
Leasehold improvements [Member]
Property and equipment, net
Property and equipment, gross	4,977	4,976
Other equipment [Member]
Property and equipment, net
Property and equipment, gross	$ 166	$ 166

Property and Equipment, net (46

Property and Equipment, net (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Operating expense depreciation	$ 617	$ 443

Restricted Cash (Details)

Restricted Cash (Details) $ in Thousands	Mar. 31, 2016USD ($)
Cash and Cash Equivalents [Abstract]
Restricted cash for potential loss in Akamai Technologies, Inc. intellectual property dispute	$ 62,790

Goodwill (Details Textual)

Goodwill (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Foreign currency translation adjustment	$ 227

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 3,511	$ 4,786
Accrued cost of revenue	2,160	2,698
Deferred rent	685	782
Accrued legal fees	201	143
Other accrued expenses	2,062	2,448
Total other current liabilities	$ 8,619	$ 10,857

Line of Credit (Details)

Line of Credit (Details) - Revolving Credit Facility - Credit Agreement - USD ($)	Nov. 02, 2015	Mar. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Maximum borrowing amount	$ 25,000,000
Borrowing capacity limit, Percent of accounts receivable	80.00%
Current borrowing capacity		$ 6,400,000	$ 18,000,000
Proceeds from line of credit		12,790,000
Minimum liquidity benchmark	$ 17,500,000
Commitment fee paid at closing (percent)	0.25%
Commitment fee top be paid at one year anniversary of closing (percent)	0.20%
Interest expense, line of credit		73,000
Commitment fees amortization		26,000
Minimum tangible net worth	$ 100,000,000
Maximum adjustment if payment made on litigation	$ 52,500,000
Maximum unfinanced capital expenditures per annum		$ 25,000,000
Maximum
Line of Credit Facility [Line Items]
Unused line fee (percent)	0.375%
Minimum
Line of Credit Facility [Line Items]
Unused line fee (percent)	0.25%
LIBOR
Line of Credit Facility [Line Items]
Variable rate (percent)	2.75%
Alternative Base Rate
Line of Credit Facility [Line Items]
Variable rate (percent)	0.50%
Variable rate minimum (percent)	0.50%
Variable rate maximum (percent)	1.50%

Other Long Term Liabilities (De

Other Long Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Deferred rent	$ 1,743	$ 1,907
Income taxes payable	394	404
Total other long term liabilities	$ 2,137	$ 2,311

Contingencies (Details)

Contingencies (Details) - Pending Litigation [Member] $ in Thousands	1 Months Ended
	Feb. 29, 2008USD ($)Claim	Feb. 16, 2016Patent	Dec. 23, 2015USD ($)
Akamai '703 Litigation [Member]
Loss Contingencies [Line Items]
Number of claims Company infringed | Claim	4
Aggregate of lost profits, reasonable royalties and price erosion damages	$ 45,500
Estimated possible loss for damages and interest, maximum			$ 62,790
2016 Akamai Litigation [Member]
Loss Contingencies [Line Items]
Number of patents Company was infringing | Patent		3

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net loss	$ (5,946)	$ (5,683)
Basic and diluted weighted average outstanding shares of common stock (in shares)	102,693	98,636
Basic and diluted (in usd per share)	$ (0.06)	$ (0.06)

Net Loss per Share Dilutive Com

Net Loss per Share Dilutive Common Stock (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	1,082	4,115
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	424	156
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	134	1,261
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded outstanding options and restricted stock units (in shares)	524	2,698

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Feb. 12, 2014
Equity, Class of Treasury Stock [Line Items]
Cash paid for common stock including commissions	$ 0	$ 957,000
Issuance of preferred stock authorized (in shares)	7,500,000		7,500,000
Employee stock purchase plan [Member]
Equity, Class of Treasury Stock [Line Items]
Discount from market price for employees	15.00%
Common Stock reserved for future options and restricted stock awards (in shares)	2,642,000
Employee funds held by company for future purchase of shares	$ 602,000
Shares issued	0
Cash proceeds received from issuance of shares	$ 0
Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchase amount authorized				$ 15,000,000
Stock repurchased and retired during period (in shares)	0	293,000
Cash paid for common stock including commissions	$ 0	$ 818,000

Accumulated Other Comprehensi56

Accumulated Other Comprehensive Loss (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	$ 198,097
Accumulated other comprehensive income, ending balance	195,745
Foreign Currency [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(10,768)
Other comprehensive income before reclassifications	659
Amounts reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive gain (loss), net of tax	659
Accumulated other comprehensive income, ending balance	(10,109)
Unrealized Gains (Losses) on Available for Sale Securities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(44)
Other comprehensive income before reclassifications	0
Amounts reclassified from accumulated other comprehensive income (loss)	44
Other comprehensive gain (loss), net of tax	44
Accumulated other comprehensive income, ending balance	0
AOCI Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(10,812)
Other comprehensive income before reclassifications	659
Amounts reclassified from accumulated other comprehensive income (loss)	44
Other comprehensive gain (loss), net of tax	703
Accumulated other comprehensive income, ending balance	$ (10,109)

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Components of share-based compensation expense
Share-based compensation	$ 3,496	$ 3,069
Cost of services [Member]
Components of share-based compensation expense
Share-based compensation	473	513
General and administrative expense [Member]
Components of share-based compensation expense
Share-based compensation	1,826	1,406
Sales and marketing expense [Member]
Components of share-based compensation expense
Share-based compensation	737	689
Research and development expense [Member]
Components of share-based compensation expense
Share-based compensation	460	461
Stock options [Member]
Components of share-based compensation expense
Share-based compensation	983	1,182
Restricted stock units [Member]
Components of share-based compensation expense
Share-based compensation	2,360	1,813
ESPP [Member]
Components of share-based compensation expense
Share-based compensation	$ 153	$ 74

Share-Based Compensation (Det58

Share-Based Compensation (Details Textual) $ in Thousands	Mar. 31, 2016USD ($)
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized share-based compensation expense total	$ 20,586
Share-based compensation expense, remainder of 2016	8,313
Share-based compensation expense, 2017	7,883
Stock options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized share-based compensation expense total	6,222
Restricted stock awards [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized share-based compensation expense total	$ 14,364

Leases and Commitments (Details

Leases and Commitments (Details) $ in Thousands	Mar. 31, 2016USD ($)
Future minimum lease payments over remaining lease periods
Remainder of 2016	$ 2,995
2,017	3,231
2,018	3,009
2,019	1,488
2,020	566
Thereafter	414
Total minimum payments	$ 11,703

Leases and Commitments (Detai60

Leases and Commitments (Details 1) $ in Thousands	Mar. 31, 2016USD ($)
Minimum purchase commitments
Remainder of 2016	$ 26,638
2,017	13,377
2,018	2,822
2,019	759
2,020	70
Thereafter	8
Total minimum payments	$ 43,674

Leases and Commitments (Detai61

Leases and Commitments (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Leases Capital [Abstract]
Outstanding balance for capital leases	$ 3,166		$ 1,902
Recorded assets under capital lease obligations	3,416		1,679
Related accumulated amortization total	486		$ 210
Interest expense related to capital leases	$ 35	$ 4

Leases and Commitments Leases a

Leases and Commitments Leases and Commitments (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2016	$ 615
2,017	994
2,018	994
2,019	899
2,020	47
Thereafter	0
Total	3,549
Amounts representing interest	(383)
Total minimum lease payments	$ 3,166	$ 1,902

Concentrations (Details)

Concentrations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)customercountry	Mar. 31, 2015USD ($)customercountry
Concentration Risk [Line Items]
Number of Customers Who Represented 10 Percent or More of Total Revenue | customer	0	0
Revenues	$ 41,422	$ 42,329
Geographic Concentration Risk [Member] | Total Revenue [Member]
Concentration Risk [Line Items]
Number of countries accounting for 10% or more of revenue | country	3	2
United States | Geographic Concentration Risk [Member] | Total Revenue [Member]
Concentration Risk [Line Items]
Revenues	$ 22,410	$ 25,611

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 158	$ 55

Segment Reporting and Geograp65

Segment Reporting and Geographic Areas (Details Textual)	3 Months Ended
	Mar. 31, 2016SegmentLocation
Segment Reporting [Abstract]
Number of industry segment | Segment	1
Number of geographic areas | Location	3

Segment Reporting and Geograp66

Segment Reporting and Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue earned by geographic area
Revenues	$ 41,422	$ 42,329
Americas [Member]
Revenue earned by geographic area
Revenues	24,008	27,259
EMEA [Member]
Revenue earned by geographic area
Revenues	8,912	8,049
Asia Pacific [Member]
Revenue earned by geographic area
Revenues	$ 8,502	$ 7,021
Geographic Concentration [Member]
Revenue earned by geographic area
Percent of revenue	100.00%	100.00%
Geographic Concentration [Member] | Americas [Member]
Revenue earned by geographic area
Percent of revenue	58.00%	64.40%
Geographic Concentration [Member] | EMEA [Member]
Revenue earned by geographic area
Percent of revenue	21.50%	19.00%
Geographic Concentration [Member] | Asia Pacific [Member]
Revenue earned by geographic area
Percent of revenue	20.50%	16.60%

Segment Reporting and Geograp67

Segment Reporting and Geographic Areas (Details 1) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Long-lived assets by geographical area
Long-lived Assets	$ 33,338	$ 36,158
Americas [Member]
Long-lived assets by geographical area
Long-lived Assets	18,595	19,692
International [Member]
Long-lived assets by geographical area
Long-lived Assets	$ 14,743	$ 16,466

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis [Member] - USD ($) $ in Thousands		Mar. 31, 2016		Dec. 31, 2015
Assets:
Total assets measured at fair value		$ 41		$ 29,087
Money market funds [Member]
Assets:
Total assets measured at fair value		1	[1]	725	[2]
Corporate notes and bonds [Member]
Assets:
Total assets measured at fair value	[3]			15,898
Certificate of deposit [Member]
Assets:
Total assets measured at fair value		40	[4]	12,464	[3]
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
Assets:
Total assets measured at fair value		1		725
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member]
Assets:
Total assets measured at fair value		1	[1]	725	[2]
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Corporate notes and bonds [Member]
Assets:
Total assets measured at fair value	[3]			0
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Certificate of deposit [Member]
Assets:
Total assets measured at fair value		0	[4]	0	[3]
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Total assets measured at fair value		40		28,362
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member]
Assets:
Total assets measured at fair value		0	[1]	0	[2]
Significant Other Observable Inputs (Level 2) [Member] | Corporate notes and bonds [Member]
Assets:
Total assets measured at fair value	[3]			15,898
Significant Other Observable Inputs (Level 2) [Member] | Certificate of deposit [Member]
Assets:
Total assets measured at fair value		40	[4]	12,464	[3]
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Total assets measured at fair value		0		0
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member]
Assets:
Total assets measured at fair value		0	[1]	0	[2]
Significant Unobservable Inputs (Level 3) [Member] | Corporate notes and bonds [Member]
Assets:
Total assets measured at fair value	[3]			0
Significant Unobservable Inputs (Level 3) [Member] | Certificate of deposit [Member]
Assets:
Total assets measured at fair value		$ 0	[4]	$ 0	[3]
[1]	Classified in cash and cash equivalents
[2]	Classified in cash and cash equivalents
[3]	Classified in marketable securities
[4]	Classified in marketable securities

Fair Value Measurements (Deta69

Fair Value Measurements (Details Textual)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Cash equivalent maturity date (in months)	3 months