2017 Q4 Form 10-Q Financial Statement

#000108622217000249 Filed on November 08, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q4
Revenue $663.5M $621.4M $616.1M
YoY Change 7.68% 6.39% 6.38%
Cost Of Revenue $229.9M $225.5M $203.5M
YoY Change 13.01% 10.28% 5.31%
Gross Profit $433.5M $395.9M $412.6M
YoY Change 5.06% 4.3% 6.92%
Gross Profit Margin 65.34% 63.71% 66.97%
Selling, General & Admin $238.9M $242.4M $217.4M
YoY Change 9.89% 12.24% 7.2%
% of Gross Profit 55.11% 61.22% 52.68%
Research & Development $59.70M $57.23M $46.80M
YoY Change 27.56% 35.16% 24.14%
% of Gross Profit 13.77% 14.45% 11.34%
Depreciation & Amortization $99.40M $97.20M $84.00M
YoY Change 18.33% 15.03% 4.48%
% of Gross Profit 22.93% 24.55% 20.36%
Operating Expenses $326.3M $299.6M $288.5M
YoY Change 13.1% 16.0% 9.95%
Operating Profit $107.2M $91.25M $124.1M
YoY Change -13.64% -18.35% 0.49%
Interest Expense -$400.0K $4.746M -$500.0K
YoY Change -20.0% 1.71% -96.53%
% of Operating Profit -0.37% 5.2% -0.4%
Other Income/Expense, Net $500.0K $535.0K $2.800M
YoY Change -82.14% -31.23% -77.05%
Pretax Income $32.20M $91.51M $125.8M
YoY Change -74.4% -18.07% 4.4%
Income Tax -$21.30M $27.59M $34.20M
% Of Pretax Income -66.15% 30.16% 27.19%
Net Earnings $27.52M $63.91M $91.64M
YoY Change -69.97% -15.91% 3.64%
Net Earnings / Revenue 4.15% 10.29% 14.87%
Basic Earnings Per Share $0.16 $0.37 $0.53
Diluted Earnings Per Share $0.16 $0.37 $0.52
COMMON SHARES
Basic Shares Outstanding 169.2M shares 171.0M shares 173.3M shares
Diluted Shares Outstanding 171.5M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $711.9M $752.0M $837.0M
YoY Change -14.95% -17.47% 11.66%
Cash & Equivalents $313.4M $368.2M $324.2M
Short-Term Investments $398.6M $383.8M $512.8M
Other Short-Term Assets $29.30M $142.9M $19.73M
YoY Change 48.49% 21.41% -59.26%
Inventory
Prepaid Expenses $25.16M
Receivables $461.5M $400.8M $368.6M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.346B $1.296B $1.310B
YoY Change 2.77% -6.57% 4.53%
LONG-TERM ASSETS
Property, Plant & Equipment $862.5M $883.8M $801.0M
YoY Change 7.68% 10.76% 6.35%
Goodwill $1.499B $1.359B $1.229B
YoY Change 21.99% 18.03% 6.8%
Intangibles $201.3M $176.3M $149.5M
YoY Change 34.65% 26.94% -4.25%
Long-Term Investments $567.6M $661.9M $779.3M
YoY Change -27.17% -13.78% 0.59%
Other Assets $136.4M $113.7M $95.95M
YoY Change 42.12% 26.58% 7.09%
Total Long-Term Assets $3.303B $3.213B $3.063B
YoY Change 7.82% 8.32% 4.6%
TOTAL ASSETS
Total Short-Term Assets $1.346B $1.296B $1.310B
Total Long-Term Assets $3.303B $3.213B $3.063B
Total Assets $4.649B $4.509B $4.373B
YoY Change 6.31% 3.57% 4.58%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $80.28M $88.34M $76.12M
YoY Change 5.46% 18.85% 22.81%
Accrued Expenses $283.7M $268.0M $238.8M
YoY Change 18.83% -7.95% 10.46%
Deferred Revenue $70.50M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $456.7M $430.3M $374.6M
YoY Change 21.92% -0.29% 12.68%
LONG-TERM LIABILITIES
Long-Term Debt $662.9M $657.1M $640.1M
YoY Change 3.56% 3.56% 3.58%
Other Long-Term Liabilities $143.0M $128.8M $118.7M
YoY Change 20.44% 22.04% 27.26%
Total Long-Term Liabilities $143.0M $128.8M $118.7M
YoY Change 20.44% 22.04% 27.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $456.7M $430.3M $374.6M
Total Long-Term Liabilities $143.0M $128.8M $118.7M
Total Liabilities $1.286B $1.236B $1.149B
YoY Change 11.98% 4.37% 8.29%
SHAREHOLDERS EQUITY
Retained Earnings -$690.7M -$761.5M -$960.7M
YoY Change -28.11% -27.64% -24.76%
Common Stock $1.699M $1.755M $1.733M
YoY Change -1.96% -2.17% -2.2%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00 $306.6M $0.00
YoY Change 3.99%
Treasury Stock Shares 0.000 shares 5.823M shares 0.000 shares
Shareholders Equity $3.362B $3.273B $3.270B
YoY Change
Total Liabilities & Shareholders Equity $4.649B $4.509B $4.373B
YoY Change 6.31% 3.57% 4.58%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q4
OPERATING ACTIVITIES
Net Income $27.52M $63.91M $91.64M
YoY Change -69.97% -15.91% 3.64%
Depreciation, Depletion And Amortization $99.40M $97.20M $84.00M
YoY Change 18.33% 15.03% 4.48%
Cash From Operating Activities $197.5M $236.2M $184.2M
YoY Change 7.22% -6.23% -25.46%
INVESTING ACTIVITIES
Capital Expenditures -$106.9M -$119.7M -$75.90M
YoY Change 40.84% 49.81% -3.8%
Acquisitions
YoY Change
Other Investing Activities -$95.30M $17.30M -$88.70M
YoY Change 7.44% -156.54% 995.06%
Cash From Investing Activities -$202.2M -$102.4M -$164.7M
YoY Change 22.77% -7.33% 89.53%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -50.90M -119.7M -68.70M
YoY Change -25.91% 39.02% -44.82%
NET CHANGE
Cash From Operating Activities 197.5M 236.2M 184.2M
Cash From Investing Activities -202.2M -102.4M -164.7M
Cash From Financing Activities -50.90M -119.7M -68.70M
Net Change In Cash -55.60M 14.10M -49.20M
YoY Change 13.01% -74.5% -237.82%
FREE CASH FLOW
Cash From Operating Activities $197.5M $236.2M $184.2M
Capital Expenditures -$106.9M -$119.7M -$75.90M
Free Cash Flow $304.4M $355.9M $260.1M
YoY Change 17.03% 7.26% -20.21%

Facts In Submission

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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2017Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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193713000 USD
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7800000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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24100000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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29500000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
32800000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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31400000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Gross
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321121000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Gross
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370001000 USD
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149463000 USD
CY2017Q3 us-gaap Finite Lived Intangible Assets Net
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176288000 USD
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us-gaap General And Administrative Expense
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323141000 USD
CY2017Q3 us-gaap General And Administrative Expense
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us-gaap General And Administrative Expense
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121669000 USD
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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333632000 USD
CY2017Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Tax Expense Benefit
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88895000 USD
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64716000 USD
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22150000 USD
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19199000 USD
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6885000 USD
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991000 USD
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7036000 USD
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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34195000 USD
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4670000 USD
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3651000 USD
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us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
CY2017Q3 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
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CY2016Q3 us-gaap Interest Costs Capitalized Adjustment
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868000 USD
us-gaap Interest Costs Capitalized Adjustment
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2499000 USD
CY2017Q3 us-gaap Interest Costs Capitalized Adjustment
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985000 USD
us-gaap Interest Costs Capitalized Adjustment
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3055000 USD
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5534000 USD
us-gaap Interest Costs Incurred
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16457000 USD
CY2017Q3 us-gaap Interest Costs Incurred
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5731000 USD
us-gaap Interest Costs Incurred
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17044000 USD
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4666000 USD
us-gaap Interest Expense
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13958000 USD
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4746000 USD
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us-gaap Investment Income Interest
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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603542000 USD
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us-gaap Net Income Loss
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us-gaap Operating Income Loss
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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29951000 USD
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187000 USD
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3145000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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1895000 USD
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Software
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105477000 USD
us-gaap Payments For Software
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122460000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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38560000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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48122000 USD
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614808000 USD
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249098000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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2936000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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197201000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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134874000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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185466000 USD
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CY2017Q3 us-gaap Preferred Stock Shares Issued
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0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2016Q4 us-gaap Preferred Stock Value
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42339000 USD
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41740000 USD
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498633000 USD
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317974000 USD
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57900000 USD
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us-gaap Research And Development Expense
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42341000 USD
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us-gaap Selling And Marketing Expense
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308060000 USD
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us-gaap Selling And Marketing Expense
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353218000 USD
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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170976000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Commitments and Contingencies</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Legal Matters</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July 2016, as part of the resolution of a patent infringement lawsuit filed by the Company against Limelight Networks, Inc. (&#8220;Limelight&#8221;) in 2006, the Company entered into an agreement that requires Limelight to pay the Company </font><font style="font-family:inherit;font-size:10pt;">$54.0 million</font><font style="font-family:inherit;font-size:10pt;"> in </font><font style="font-family:inherit;font-size:10pt;">12</font><font style="font-family:inherit;font-size:10pt;"> equal installments over </font><font style="font-family:inherit;font-size:10pt;">three years</font><font style="font-family:inherit;font-size:10pt;">, beginning in August 2016. During the three and </font><font style="font-family:inherit;font-size:10pt;">nine</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company received </font><font style="font-family:inherit;font-size:10pt;">$4.5 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$13.5 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, under this agreement, of which </font><font style="font-family:inherit;font-size:10pt;">$4.1 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$12.3 million</font><font style="font-family:inherit;font-size:10pt;"> was recorded as a gain contingency, which reduced general and administrative expenses in the consolidated statements of income, respectively, and </font><font style="font-family:inherit;font-size:10pt;">$0.4 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$1.2 million</font><font style="font-family:inherit;font-size:10pt;"> was recorded as interest income, respectively. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2015, Limelight filed a complaint in the U.S. District Court for the Eastern District of Virginia against the Company and XO Communications LLC (&#8220;XO&#8221;), alleging patent infringement by the </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> companies.&#160; The complaint alleges that the Company and XO infringed </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> of Limelight&#8217;s content delivery patents.&#160;The complaint seeks to recover from the Company and XO monetary damages based upon lost revenue due to infringing technology used by the companies.&#160; The Company has agreed to indemnify XO for damages it incurs in this matter. The Company has made counterclaims in the action against Limelight alleging that Limelight has infringed </font><font style="font-family:inherit;font-size:10pt;">five</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s content delivery patents, and the Company is seeking monetary damages based upon lost revenue due to the infringing technology used by Limelight.&#160; </font><font style="font-family:inherit;font-size:10pt;">No</font><font style="font-family:inherit;font-size:10pt;"> provision with respect to this matter has been made in the Company&#8217;s consolidated financial statements.&#160; An estimate of the possible loss or range of loss cannot be made.</font></div></div>

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