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Limelight Networks (LLNW) reported Q3 revenue of $32.5 million, about in line with the Street at $32.7 million, and up 1% sequentially, while down slightly from $33.1 million from a year ago. The content delivery network company posted a non-GAAP loss of a penny a share, beating the Street consensus estimate for a loss of 4 cents a share.

LLNW in late trading is off 8 cents, or 2.1%, to $3.73.

Shares of both Akamai (AKAM) and Limelight Networks (LLNW) are trading lower on increasing concerns about pricing in the content delivery network sector.

As I previously noted, Merriman Curhan Ford analyst Richard Fetyko last night cut his rating on Akamai to Sell from Hold, asserting that AKAM is losing CDN business to Limelight and Level 3 (LVLT) as a result of pricing that is far above the competition. Meanwhile, Pacific Crest analyst Chad Batley today cut his rating on LLNW to Sector Perform from Outperform, while cutting estimates on both Limelight and Akamai.

Akamai (AKAM) is losing deals in an attempt to hold the line on content deliver network pricing, according to Merriman Curhan Ford analyst Richard Fetyko, who late yesterday cut his rating on the stock to Sell from Hold.

Limelight Networks (LLNW) shares are coming under pressure this morning after Raymond James analyst Michael Tutits cut his rating on the stock to Underperform from Market Perform, citing growing price pressure in the content delivery network sector. Turits notes that Q2 results indicated worsening price pressure for both Limelight and rival Akamai (AKAM); he says Limelight is also seeing slower traffic growth.

Turits also repeated his Market Perform rating on AKAM; he cut estimates on both companies.

Limelight Networks (LLNW) shares a rare winner in the tech sector today, getting a boost from Brigantine Advisors analyst Mark Kelleher, who lifted his rating on the stock to Hold from Sell on a valuation basis.

Kelleher notes that the content delivery network operator’s shares have pulled back 27% in three months - and 21% in the last month alone. With the stock trading at 6.8x EV/2009 EBITDA, he writes, the stock is now appropriately valued. That said, he remains cautious on the stock, citing competitive pressures from Akamai (AKAM) and Level 3 (LVLT).