Limelight Networks (NASDAQ:LLNW), the digital content delivery group, exceeded the expectations of Wall Street and reported first-quarter earnings, which sent its shares flying higher.
In trading after the bell, shares in Limelight, which provides content delivery and video content management, jumped 18% to US$4.85.
Limelight said its earnings for the first quarter came to $0.06 per share, or US$6.2mln, on an adjusted basis, on revenue of US$52.1mln. Analysts had only expected the group to EPS of $0.02 on sales of US$48mln.
The group has also bolstered its earnings outlook and now expects non-GAAP earnings for the year to fall between $0.13 to $0.17 per share on revenue of US$198mln to US$202mln.
In the quarter, Limelight also settled its legal tussle over patent infringement with its rival Akamai Technologies (NASDAQ:AKAM). While the terms of the settlement were not disclosed, Bob Lento, Limelight’s chief executive, said legal payments related to the matter are now paid in full.
“Limelight also entered into a definitive agreement with Akamai with regard to all outstanding litigation, bringing to an end an equally longstanding legal battle between the two companies,” said Lento in a statement. “Limelight has started 2018 on a strong note, with double-digit revenue growth, gross margins in excess of 50%, and positive GAAP profitability. We are raising our full-year guidance and are excited about the opportunities that surround us.”