Writer's Strike Costs Limelight $1 Million
February 19th, 2008 By: Rich Miller
Content delivery network provider Limelight Networks (LLNW) said that the Hollywood writer’s strike will cost it $1 million in revenue for the first quarter of 2008, as media companies scaled back their spending plans for the long haul. Although the strike has now been settled, uncertainty about the pace of content delivery for new TV shows was one of the factors that prompted Limelight to reduce its revenue guidance to a range of $30 million to $32 million. Wall Street analysts had been expecting revenue of $33.2 million. It’s interesting that the writer’s strike doesn’t seem to have had the same kind of impact at Akamai (AKAM).
Limelight also missed its fourth quarter numbers, reporting revenue of $29.1 million, while the Street was expecting $29.92 million.