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Limelight posts record revenue in 2008, narrows loss in Q4

February 26, 2009 — 10:13am ET | By Pete Wylie

Tools

Limelight Networks, Inc. reported 30 customer wins and record revenue of $36 million in the fourth quarter in its earnings report released Thursday. Fourth-quarter revenue was up 23 percent from Q4 2007, showing strong growth for the year for the Tempe, Ariz.-based CDN. The company reported a net loss of $14 million for the quarter, but also said it had no bank debt and around $175 million in cash and marketable securities.

"Consumers and businesses continue to migrate online to source information, enjoy entertainment media, and conduct commerce," said CEO and chairman Jeff Lunsford. "With our robust network-based architecture and disciplined operations, we believe we are well-positioned to capitalize on this long-term trend and grow our business in 2009 even amidst challenging times."

For 2008, Limelight reported $130 million in revenue, which amounted to a 26 percent increase from 2007. It also narrowed its GAAP net loss to $63 million from $70 million in 2007. Limelight projected first-quarter revenue of $32 to $33 million.

Limelight's positive fourth-quarter report is also good news for the CDN industry, as its two biggest players, Limelight and Akamai, both posted record revenue for the fourth quarter. Demand for content delivery services seems to be growing without end in sight, as video and other rich media application grow in popularity and consume more and more bandwidth.

For more:
- see the MSN Money article here