Riverbed Preliminary Q4 Results Exceeds Outlook; Rejects Elliott's Proposal

(RTTNews) - Riverbed Technology (RVBD) announced its preliminary fourth-quarter results, exceeding previously announced fourth-quarter guidance. The company expects fourth-quarter non-GAAP net income to be in the range of $0.30 to $0.31 per share, compared to the company's prior guidance of $0.26 to $0.27 per share.

Analysts polled by Thomson Reuters expect the company to report fourth-quarter profit per share of $0.26. Analysts' estimates typically exclude special items.

The company expects fourth-quarter non-GAAP revenue to be in the range of $284 million to $285 million, compared to the prior guidance of $270 million to $276 million. Analysts expect revenue of $273.32 million for the quarter.

Jerry Kennelly, chairman and CEO, Riverbed, said: "Sales in the fourth quarter exceeded our expectations across all major product lines and geographies, demonstrating strong ongoing demand and the differentiated value that we deliver to customers across our full product portfolio."

For the first quarter of fiscal 2014, the company expects non-GAAP earnings of $0.21 to $0.23 per share, and non-GAAP revenue of $262 million to $268 million. Analysts expect the compay to report first-quarter profit per share of $0.23 on revenue of $258.49 million.

Riverbed Technology also announced that its Board, after consideration with independent legal and financial advisors, has unanimously determined not to pursue the unsolicited proposal from Elliott Management Corporation to acquire all of the outstanding shares of Riverbed common stock for $19.00 per share, as it believes the proposal undervalues the company and is not in the best interests of shareholders.

Jerry Kennelly, CEO, Riverbed, said: "While the Board will carefully review any credible offer made to acquire the company, any such offer must deliver value to our shareholders in excess of what we believe will be created as we execute on our growth plans and capitalize on the significant investments we have already made in that regard."