Riverbed Technology Cuts Q3 View, Announces Restructuring - Quick Facts

(RTTNews) - Riverbed Technology (RVBD), a leader in application performance infrastructure, Thursday said third-quarter non-GAAP earnings are now expected in a range of $0.30 to $0.31 per share, compared with the company's prior guidance range of $0.30 to $0.32 per share.

Non-GAAP revenue is expected to be in the range of $276 million to $277 million, compared to the company's previous guidance of $285 million to $291 million, reflecting primarily lower than expected growth in the WAN Optimization and virtual ADC businesses.

The company also announced that it has initiated a restructuring plan to reduce annual costs by $20 million to $25 million and improve annual operating margins by 1 to 2 percent. The company expects these restructuring efforts to be substantially complete by the end of calendar 2014.

"In light of current business conditions, we are taking decisive steps to improve our cost structure in order to drive enhanced operating performance," said Jerry M. Kennelly, chairman and CEO, Riverbed.

In addition, Riverbed's Board of Directors has determined to undertake a comprehensive review, with the assistance of its advisors, of strategic and financial alternatives to enhance shareholder value.

The stock, which closed at $18.08 on Wednesday, is up 4.5 percent in pre-market activity.