Limelight's Dim Q2
For the second quarter 2007, the content delivery network (CDN) reported a loss of $10.5 million, or 23 cents a share, on revenues of $21.2 million. That compares with a net gain of $1.7 million, or 4 cents a share, on revenues of $14.8 million during the previous year's second quarter. (See LimeLight Reports Q2.)
Despite a revenue increase of 43 percent, Limelight badly missed Wall Street projections for the quarter. Analysts on average expected the company to post a loss of 8 cents per share on revenues of $24.1 million, according to Thomson Financial .
The company also gave guidance for the third quarter and full year that fell below analyst estimates. The company said it expects revenues for the third quarter to be in the range of $27 million to $28 million, roughly in line with Wall Street's forecast of $27.9 million for the quarter. But the company is projecting a loss of 8 to 10 cents per share for the quarter, compared with the mean analyst forecast of a 2 cent loss.
Forecasts for the full year were even worse, as Limelight called for sales between $101 million and $103 million, compared with the Street's forecast of $109 million for fiscal 2007. And the company is calling for a loss of 51 to 54 cents per share, compared with analyst forecasts of a 16 cent loss.
The company's poor financials and guidance prompted a selloff in shares in morning trading. Limelight's stock fell to its lowest point since the company went public at $15 per share in June, trading as low as $8.60. In late morning trading, Limelight shares were down $5.24, or 35 percent, to $9.56.
— Ryan Lawler, Reporter, Light Reading