Limelight rises after Wedbush starts at 'Buy'

In late afternoon trading, Limelight shares rose 46 cents, or 12.6 percent, to $4.12. The stock has ranged from $2.62 to $23.82 over the past year.

Akamai Technologies Inc. sued Limelight in 2006, alleging Limelight was infringing on an Akamai content-delivery patent. Earlier this year, a jury in the U.S. District Court of Massachusetts ruled in Akamai's favor, and awarded the company $45.5 million in damages, plus interest.

"We expect a final judgment in the next couple of months. Our base case assumes that the favorable Akamai patent infringement ruling is ruling is upheld, but a permanent injunction is not granted," Wedbush Morgan Securities analyst Kerry Rice wrote in a client note.

"Also critical, we expect Limelight to announce a content delivery 'work around' technology on its second-quarter earnings call likely held in August," the analyst added.

Furthermore, Rice said that if the judge in the case grants Akamai's request for a permanent injunction, he expects Limelight to appeal the final judgment, "a process that could last several quarters."