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Riverbed Technology Reports Third Quarter 2013 Results

Stocks in this article: RVBD

Riverbed Technology (NASDAQ:RVBD), the application performance company, today reported financial results for its third quarter ended September 30, 2013 (Q3’13).

GAAP revenue for Q3’13 was $262 million, compared to $219 million in the third quarter of 2012 (Q3’12), representing 20% year-over-year growth. GAAP net income for Q3'13 was $3.8 million, or $0.02 per diluted share, compared to GAAP net income of $24.7 million, or $0.15 per diluted share, in Q3’12.

Non-GAAP revenue for Q3’13 was $265 million, an increase of 21% compared to $219 million in Q3’12. Non-GAAP net income for Q3’13 was $43.3 million, or $0.26 per diluted share, compared to non-GAAP net income of $46.1 million, or $0.28 per diluted share, in Q3’12.

“In a mixed economic environment, which was particularly evident in the government vertical, Riverbed delivered solid third quarter results,” said Jerry M. Kennelly, Riverbed chairman and CEO. “Strong margin performance and prudent expense control drove higher profitability in the quarter,” continued Kennelly. “We further demonstrated our commitment to driving shareholder value by executing a $50 million stock repurchase during the quarter, continuing our track record of returning a substantial amount of free cash flow to investors in the form of share repurchases.”

Q3’13 Business Highlights

  • Extended market-leading Riverbed® Steelhead® wide area network optimization (WAN) product family with the addition of a new hardware appliance and upgrades to Steelhead software with RiOS® 8.5
    • RiOS 8.5 introduces Path Selection which allows IT organizations to cost-effectively deploy and manage complex hybrid networks ensuring the right path and service level for each application with no impact to end user experience
    • RiOS 8.5 integration with Riverbed Cascade® Profiler software helps IT managers meet application service level agreements
    • New Steelhead CX 255 series appliance brings enterprise-class WAN optimization cost-effectively to every branch office offering the same benefits found in larger Steelhead WAN optimization solutions, including decreasing bandwidth utilization by up to 98 percent and improving application acceleration up to 100 times faster
  • Achieved significant milestone with the integration of the Riverbed Cascade® and OPNET product families introducing a single appliance combining application-aware network performance management and application performance management. The integrated solution provides end-to-end performance management giving customers a single solution to maximize performance, availability and productivity of critical applications.
  • Introduced new higher capacity, higher performance Riverbed Granite® appliance and added support for Fibre Channel
  • Announced alliance with Joyent to launch Riverbed Stingray® and Joyent Content Delivery Cloud. The new offering combines Joyent’s public cloud infrastructure with Stingray ADC software to improve performance and flexibility while reducing costs compared to the traditional content delivery network.
  • Awarded certification under the J.D. Power 2013 Certified Technology Service and Support Program for the third consecutive year. This certification acknowledges excellence in delivering outstanding service and support on a worldwide basis, with customer satisfaction scores among the top 20 percent of companies nationwide offering technology support.
  • Recently appointed executives:
    • Kate Hutchison, Senior Vice President and Chief Marketing Officer; joins Riverbed from executive marketing roles at Polycom, VMware, Citrix, and BEA Systems
    • Ginna Raahauge, Senior Vice President and Chief Information Officer; joins Riverbed from Cisco where she was responsible for the technology platform for Cisco’s global order through invoice process and revenue recognition

Conference Call

Riverbed will host a conference call today, October 28, 2013, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its third quarter 2013 results. The call will be broadcast live over the Internet at http://www.riverbed.com/investors. A replay of the conference call will also be available via webcast at http://www.riverbed.com/investors for 12 months.

Analyst/Investor Meeting

Riverbed will host a meeting for analysts and investors at The Bently Reserve in San Francisco, from 1:00 p.m. to 5:00 p.m. PT on Monday, November 18, 2013.

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