Limelight Networks (LLNW) saw its loss narrow to $3.34 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $5.95 million, or $0.06 a share. On an adjusted basis, net profit for the quarter stood at $1.65 million, or $0.02 a share compared with a net loss of $1.27 million, or $0.01 a share in the last year period.
Revenue during the quarter grew 8 percent to $44.74 million from $41.42 million in the previous year period. Gross margin for the quarter expanded 714 basis points over the previous year period to 47.33 percent. Operating margin for the quarter stood at negative 7.64 percent as compared to a negative 14.52 percent for the previous year period.
Operating loss for the quarter was $3.42 million, compared with an operating loss of $6.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.71 million compared with $3.95 million in the prior year period. At the same time, adjusted EBITDA margin improved 547 basis points in the quarter to 15 percent from 9.54 percent in the last year period.
"Our first quarter results were strong, and ahead of expectations. We have a clear strategy to deliver against aggressive targets for 2017. Strong execution in the first quarter demonstrates our ability to successfully navigate through continuous changes in a healthy industry. Our customers are trusting us with more of their business, our employee turnover is at the lowest level in years, our financial performance is improving across multiple dimensions, and overall our competitive position is stronger than ever," said Bob Lento, chief executive officer at Limelight.
For financial year 2017, Limelight Networks expects revenue to be in the range of $177 million to $181 million. The company projects diluted earnings per share to be in the range of $0.03 to $0.06 on adjusted basis.
Operating cash flow drops significantly Limelight Networks has generated cash of $1.14 million from operating activities during the quarter, down 64.20 percent or $ 2.04 million, when compared with the last year period.
The company has spent $2.96 million cash to meet investing activities during the quarter as against cash outgo of $35.90 million in the last year period.
The company has spent $0.92 million cash to carry out financing activities during the quarter as against cash inflow of $12.03 million in the last year period.
Cash and cash equivalents stood at $19.15 million as on Mar. 31, 2017, down 20.67 percent or $4.99 million from $24.14 million on Mar. 31, 2016.
Working capital increases sharply
Limelight Networks has recorded an increase in the working capital over the last year. It stood at $51.91 million as at Mar. 31, 2017, up 38.70 percent or $14.48 million from $37.43 million on Mar. 31, 2016. Current ratio was at 2.32 as on Mar. 31, 2017, down from 2.83 on Mar. 31, 2016.
Days sales outstanding went down to 54 days for the quarter compared with 60 days for the same period last year.
At the same time, days payable outstanding went up to 34 days for the quarter from 31 for the same period last year.
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