Riverbed: Fiscal 1Q09 Financial Results

Riverbed Technology reported financial results for its first quarter ended March 31, 2009 (Q1’09).

Total GAAP revenue for Q1’09 was $88.2 million, an increase of 21% from $73.0 million of GAAP revenue reported in the first quarter of fiscal year 2008 (Q1’08). GAAP net income for Q1’09 was $974,000, or $0.01 per diluted share. This compares to GAAP net income of $638,000, or $0.01 per diluted share, in Q1’08.

Non-GAAP revenue for Q1’09 was $88.5 million, an increase of 21% from $73.0 million of revenue reported in Q1’08. Non-GAAP net income for Q1’09 was $9.2 million, or $0.13 per diluted share, as compared to non-GAAP net income for Q1’08 of $7.9 million, or $0.11 per diluted share.

“We are pleased with the strong results we are reporting for the first quarter,” said Jerry M. Kennelly, Riverbed president and CEO. “We executed well, achieving 21 percent year-over-year revenue growth and a 33 percent increase in non-GAAP operating profit. Riverbed’s core value proposition of delivering increased efficiency, as well as the strong return on investment and short payback associated with the deployment of our products, is extremely compelling, even more so in a challenging economic environment. Our ability to deliver that kind of value is why companies choose Riverbed.”

Q1’09 Financial Highlights

• Revenue increased 21% year-over-year
• Accounts receivable days sales outstanding improved to 44 days
• Deferred revenue increased to $64.5 million
• Cash flow from operations was $27.1 million
• Cash, cash equivalents, and marketable securities of $258.2 million and no debt

Q1’09 Business Highlights

• Announced an OEM agreement with Microsoft to license Windows Server 2008 for integration on the Riverbed Steelhead appliance through the Riverbed Services Platform (RSP)
• Included as the only WAN optimization vendor in HP Procurve’s Open Network Ecosystem (ProCurve ONE)
• Achieved E-lab qualification with EMC Symmetrix Remote Data Facility/Asynchronous product (SRDF/A) to accelerate disaster recovery and business continuity solutions
• Completed the acquisition of Mazu Networks allowing Riverbed to offer the most compelling enterprise-wide system for closed-loop application performance delivery over the WAN
• Continued to strengthen its service provider channel, adding a new managed service offering with Singapore Telecommunications Limited (SingTel)
• Awarded best WAN Accelerator for the fifth consecutive year by InfoWorld