Riverbed: Fiscal 1Q14 Financial Results

Riverbed Technology, Inc. reported financial results for Q1’14 ended March 31, 2014.

Total GAAP revenue for Q1’14 was $265 million, up 8% compared to Q1’13. GAAP net income for Q1’14 was $3.3 million, or $0.02 per diluted share. This compares to a net loss of $8.1 million, or ($0.05) per diluted share, in Q1’13.

Non-GAAP revenue for Q1’14 was $266 million, an increase of 5% compared to Q1’13. Non-GAAP net income for Q1’14 was $40 million, or $0.24 per diluted share. This compares to $39 million, or $0.23 per diluted share, in Q1’13.

“Our first quarter results are a strong proof point supporting our strategy to bring value to our customers by optimizing the delivery of applications and data on a global scale and to deliver profitable returns to our shareholders,” said Jerry M. Kennelly, chairman and CEO. “Year-over-year revenue growth was led by WAN optimization and strength in enterprise and international sales. We are also very encouraged by our performance management business with increasing revenue from channel partners and significant growth in Europe.”

Kennelly continued: “As customers increasingly adopt the full breadth of our Application Performance Platform, we expect to achieve higher than industry growth across all of our product lines and deliver non-GAAP earnings per share growth that exceeds revenue growth. In a world where nearly every business runs on applications, Riverbed improves business performance by improving application performance. We see tremendous opportunity ahead of us.”

Q1’14 Business Highlights

• Expanded Steelhead WAN optimization product family, delivering a new purpose-built appliance – the Steelhead DX Edition 8000 Series – to address the needs of datacenter-to-datacenter data replication workloads, delivering up to 60x WAN performance acceleration and up to 99% bandwidth reduction.
• Recognized in the leaders quadrant of the first Gartner Magic Quadrant for Network Performance Monitoring and Diagnostics (published in March 2014).
• Awarded InfoWorld Technology of the Year Awards for its Granite branch converged infrastructure and Steelhead wide area network (WAN) optimization solutions. Granite received the InfoWorld Technology of the Year Award recognition for the second consecutive year and Steelhead has won eight consecutive times. As of April 15, Granite was renamed SteelFusion.
• Received Product of the Year by Storage magazine-SearchStorage.com for Whitewater cloud storage appliances in the category for backup hardware.
• Stingray positioned as a Champion in Info-Tech Research Group’s 2014 Vendor Landscape: Application Delivery Controllers (ADC) for delivering excellent value to customers, having a strong market presence and being an industry trendsetter.
• Recognized in the infrastructure category of the CRN Datacenter 100 featuring technology vendors whose solutions are vital for powering today’s datacenter.
• Awarded a 5-Star rating in the CRN 2014 Partner Program Guide for the sixth consecutive year. The rating recognizes an elite subset of companies that offer solution providers the best partnering elements in their channel programs.
• MTC Australia deployed Steelhead cloud Accelerator and Stingray solutions – part of the Application Performance Platform – nationally across 28 offices and two data centers for its ‘cloud first’ strategy to accelerate the delivery of Office 365 up to 300% and reduce bandwidth upgrade costs by two-thirds.