Riverbed Technology Q3 Profit Plunges, But Tops View

(RTTNews) - Networking solutions provider Riverbed Technology, Inc. (RVBD) reported Monday a profit for the third quarter that plunged from last year, reflecting higher amortization and income tax adjustments. However, adjusted earnings per share topped analysts' expectations, while adjusted quarterly revenues missed their estimates.

Riverbed specializes in improving the performance of networks and and related applications, and helps optimize data traffic and bandwidth utilization across networks.

"In a mixed economic environment, which was particularly evident in the government vertical, Riverbed delivered solid third quarter results. Strong margin performance and prudent expense control drove higher profitability in the quarter," Chairman and CEO Jerry Kennelly said in a statement.

The San Francisco, California-based company reported net income of $3.82 million or $0.02 per share for the third quarter, sharply lower than $24.73 million or $0.15 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $43.26 million or $0.26 per share, compared to $46.08 million or $0.28 per share in the year-ago quarter.

On average, 31 analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 20 percent to $261.72 million from $218.60 million in the same quarter last year, and adjusted revenue was $265 million, compared to $219 million last year. Analysts expected revenues of $267.44 million for the quarter.

Product revenues grew to $153.17 million from $144.61 million, and support and services revenues surged to $108.56 million from $73.99 million in the year-ago quarter.

Gross profit for the quarter increased to $190.87 million from $168.54 million, and total operating expenses were $188.33 million, sharply higher than $129.09 million last year.

RVBD closed Monday's regular trading session at $14.35, up $0.46 or 3.35% on a volume of 6.40 million shares.