Riverbed Sinks as Sales Miss Forecast on Soft Government Spending

NEW YORK ( TheStreet) - Riverbed ( RVBD) shares sank more than 8% in extended trading after the network specialist posted weaker-than-expected first-quarter results.

San Francisco-based Riverbed reported net income of $246.1 million, up from $182.4 million in the same period last year but well below Wall Street's forecast of $261.15 million.

Excluding items, Riverbed earned 23 cents a share, up from 20 cents a share in the prior year's quarter. However, analysts surveyed by Thomson Reuters were looking for earnings of 24 cents a share.

Investors were underwhelmed by the numbers, pushing Riverbed's shares down 8.15% to $13.64. The company's stock ended Monday's session off 0.27% at $13.40.

Riverbed, which sells technology for boosting applications across Wide Area Networks (WANs), acquired app performance management specialist Opnet last year.

"Non-GAAP revenue grew thirty-eight percent over the prior year and ten percent without the benefit of $52 million contributed by OPNET in the quarter," said Jerry Kennelly, the Riverbed CEO, in a statement. "Despite weak government spending and general economic softness impacting results, WAN optimization revenue increased six percent year-over-year."

--Written by James Rogers in New York.

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