Riverbed Technology Shares Plunge 15% On Q2 Loss, Revenues Miss View

(RTTNews) - Shares Riverbed Technology, Inc. (RVBD) plunged more than 15 percent in extended trading on Tuesday after the networking solutions provider reported a loss for the quarter compared to a profit last year. Adjusted revenues also missed analysts' expectations, while adjusted earnings per share matched their estimates. Riverbed specializes in improving the performance of networks and and related applications, and helps optimize data traffic and bandwidth utilization across networks.

The San Francisco, California-based company reported a net loss of $16.52 million or $0.10 per share for the second quarter, compared to net income of $18.13 million or $0.11 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $36.56 million or $0.22 per share, compared to $37.35 million or $0.23 per share in the year-ago quarter.

On average, 33 analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 26 percent to $249.91 million from $198.47 million in the same quarter last year, and adjusted revenue was $254.75 million, compared to $198.97 million last year. Analysts expected revenues of $257.71 million for the quarter.

"Total non-GAAP revenue increased twenty-eight percent year-over-year, with growth across all major product lines, geographies, and verticals. Riverbed's core revenue, excluding OPNET, grew 7% sequentially to $215 million in the second quarter. Non-GAAP revenue from the acquired OPNET products was $40 million, as we still have work to do integrating the two companies," Chairman and CEO Jerry Kennelly said in a statement.

Product revenues grew 11 percent to $143.48 million, and support and services revenues surged 54 percent to $106.43 million from the year-ago quarter.

Gross profit for the quarter increased to $179.55 million from $148.67 million, and total operating expenses were $189.78 million, sharply up from $118.46 million last year. "Our market expanding products outside of WAN optimization and OPNET grew almost 50% compared to last year, and we believe our multi-product strategy to deliver unmatched application performance will allow us to accelerate the company's revenue growth," Kennelly added.

RVBD closed Tuesday's regular trading session at $17.53, up $0.21 or 1.21% on a volume of 7.45 million shares. However, the stock plunged $2.71 or 15.46% in after-hours trading.