TEMPE, Ariz. ― Content delivery network provider Limelight Networks Inc. sold its EyeWonder rich media advertising unit to DG Fastchannel Inc. for about $66 million in cash, sending its shares up 8 percent in pre-market trading.
Limelight now expects third-quarter revenue of $46.1-$47.3 million, including revenue from EyeWonder through Aug. 31. The company had earlier forecast revenue of $51.7-$53.2 million.
Analysts, on average, were expecting revenue of $52.4 million, according to Thomson Reuters I/B/E/S.
In the second quarter, Limelight’s digital media revenue declined as its EyeWonder advertisement platform saw less campaign traffic and was hurt by a delay in the launching of a new platform to secure more rich media campaign revenue from advertisers.
Limelight, which offers content delivery services to media clients by navigating less congested routes over the Web, bought EyeWonder in 2009. EyeWonder helps companies to create interactive digital ad campaigns.
Shares of the company rose 20 cents in trading before the bell. The stock closed at $2.68 on Nasdaq on Monday.