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Riverbed Dries Up

Shares plunge 19% after an in-line earnings report.



dried up Tuesday evening after the wide-area networking player swung to a third-quarter profit.

For the quarter ended Sept. 30, Riverbed made $2.8 million, or 4 cents a share, reversing the year-ago loss of $3.1 million, or 16 cents a share. Revenue rose to $63 million from $25 million a year earlier.

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Excluding certain items, earnings were 17 cents a share in the latest quarter, matching the Thomson Financial analyst consensus estimate.

"Strong broad-based demand led to another record quarter with year-over-year revenue growth of 157%," said CEO Jerry Kennelly. "Our leadership position in the WDS market is clearly evident in our rapid revenue growth and our high rate of new customer acquisition."

Shares fell $9.46 late Tuesday to $38.50.