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Limelight shares up after 3Q earnings report

Shares of Limelight Networks Inc., a network services provider, rose Friday after the company posted better-than-expected third-quarter earnings with strong revenue growth.
/ Source: The Associated Press

Shares of Limelight Networks Inc., a network services provider, rose Friday after the company posted better-than-expected third-quarter earnings with strong revenue growth.

Shares rose 34 cents, or 16 percent, in morning trading to $2.51. The stock has traded between $1.75 and $11.23 in the past year.

The company reported a widening third-quarter loss of $15.4 million, or 18 cents per share, compared with $3.1 million, or 4 cents, in the same quarter last year.

But excluding one-time charges related to litigation and stock compensation, the company said it lost 1 cent per share, beating average analyst expectations of a 3 cent loss, according to a survey by Thomson Reuters.

Revenue rose about 13 percent to $33.1 million from $29.2 million. Analysts predicted $31.2 million, on average.

Oppenheimer & Co. analyst Srinivas Anantha said in a note to clients, "The good quarter should help further put to rest fears that customers will avoid" Limelight's services because of litigation the company is involved in.

Limelight also estimated revenue for the fourth quarter to come in at $33 million to $34 million, slightly better that Wall Street expectations of $32.9 million.