A press release detailing our third quarter results was distributed today at 1:05 p.m. Pacific Time via Business Wire. The press release is available on our website at riverbed.com. This conference call is being webcast live via the Internet at riverbed.com/investors and will be archived on our website for the next 12 months.The information that presenters discuss today will include forward-looking statements, including, without limitation, statements about Riverbed’s current and future products and partners, statements about our recent acquisitions, our financial outlook, expected growth and opportunities in our market, our sales pipeline, our strategies and our competitive and market position. These forward-looking statements are only predictions and involve risks and uncertainties. Actual results may vary significantly. These risks are set forth on our press releases furnished to the SEC on Form 8-K today and on our Form 10-Q for the quarter ended June 30, 2011. These forward-looking statements reflect beliefs, estimates and predictions as of the date of this call. Riverbed disclaims any obligation to update any forward-looking statements. Unless otherwise stated, financial information we will review on today's conference call is presented on a non-GAAP basis. Non-GAAP items are described and reconciled to GAAP results in today's press release. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but not as a substitute for or superior to GAAP results. Any future product, feature or related specification that may be referenced in today's call are for informational purposes only and are not commitments to deliver any technology or enhancements. Riverbed reserves the right to modify or cancel future product plans at any time. I would now like to turn the call over to Riverbed's President and CEO, Jerry Kennelly. Jerry M. Kennelly Thank you, Renee, and thank you, everyone for joining us this afternoon. Q3 was a very solid quarter for Riverbed, underscoring the compelling value proposition of our products and services. Total revenue grew 12% sequentially and 29% over the prior year, marking our 23rd consecutive quarter of year-over-year revenue growth.
The U.S. showed continued strength and we saw a rebound in EMEA sales. We are particularly pleased with the performance in EMEA [ph], with revenue increasing 26% quarter-over-quarter and 31% year-on-year. Despite continued macroeconomic concerns surrounding the region, we believe the underlying demand for our products remain strong. We are also pleased by the effectiveness of our new sales leadership. Our operating model showed considerable leverage, with operating profit up nearly 40% compared to Q3 of last year, producing a record operating margin of 30%.Net income grew more than 50% to $40 million and we exited the quarter with $559 million in cash and investments, even after repurchasing $20 million of Riverbed stock and paying out $120 million for acquisitions of Zeus and Aptimize. Over the past 90 days, we have continued to see healthy demand for WAN optimization and our pipeline for the future remains robust. Gartner released second quarter 2011 market share results, and we are very proud of our achievement of 52% market share in the Advanced Platform category of WAN optimization. Riverbed Steelhead has become synonymous with unparalleled WAN performance. When we think about market growth, it is our belief that Riverbed's revenue trajectory is the real measure of our market's momentum, and there is still a greenfield of available market ahead of us. It's our contention at Riverbed is the market maker in WAN optimization, and our market share position in no way limits our growth opportunity. We continue to extend the reach of our products and to deepen our relationships with partners like VMware and Akamai. Riverbed recently announced support for VMware vSphere Replication, and we will be the only vendor to offer generalized solutions for SaaS acceleration through our joint solution with Akamai. The interest in the Akamai and Riverbed offering is strong and we have numerous customers lining up to participate in beta testing. Read the rest of this transcript for free on seekingalpha.com