Riverbed: Fiscal 2Q09 Financial Results

Riverbed Technology, Inc. reported financial results for its second quarter ended June 30, 2009 (Q2’09).

Total GAAP revenue for Q2’09 was $91.0 million, an increase of 12% from $81.6 million of GAAP revenue reported in the second quarter of fiscal year 2008 (Q2’08). The GAAP net loss for Q2’09 was $290,000, or $0.00 per diluted share. This compares to a GAAP net loss of $869,000, or $0.01 per diluted share, in Q2’08.

Non-GAAP revenue for Q2’09 was $91.6 million, an increase of 12% from $81.6 million of revenue reported in Q2’08. Non-GAAP net income for Q2’09 was $10.3 million, or $0.14 per diluted share, as compared to non-GAAP net income for Q2’08 of $9.9 million, or $0.13 per diluted share.

"Riverbed has continued to deliver revenue growth in a persistently challenging global economic environment, and the second quarter marks our 14th consecutive quarter of year-over-year top line expansion," said Jerry M. Kennelly, Riverbed president and CEO. "We experienced another strong quarter of new customer additions, ending the second quarter with more than 6,500 customers. As we look forward, we believe that Riverbed is well positioned to capture the full opportunity of the WAN optimization market. Our competitive position remains strong, our pipeline is healthy, and we are targeting revenue and profit growth in the third quarter."

Q2’09 Financial Highlights

• Revenue increased 12% year-over-year
• Non-GAAP gross margins increased to 76.1%
• Non-GAAP operating profit increased 11% year over year
• Deferred revenue increased to $70 million
• Cash, cash equivalents, and marketable securities of $269 million and no debt

Q2’09 Business Highlights

• Identified as both the WAN optimization controller (WOC) Advanced Platform and WOC worldwide market share leader for Q1’09 based on revenue in the Gartner report, Market Share: Application Acceleration Equipment, Worldwide, Q1’09
• Positioned by Gartner in the leaders quadrant in the Magic Quadrant for WAN Optimization Controllers 2009
• Introduced Cascade 8.3, providing ‘out-of-the-box’ WAN optimization intelligence, with an enhanced level of automation, ease-of-use, and consolidated enterprise visibility
• Partnered with Check Point Software Technologies to offer Check Point Security Gateway R70 on the Riverbed Services Platform, providing customers a comprehensive set of centrally managed security protections
• Partnered with Websense to deliver Websense Web Security on the Riverbed Services Platform, enabling organizations to consolidate WAN and Web security deployments, making their IT infrastructure faster, less expensive, and more secure
• Extended relationship with Microsoft and will support Microsoft Windows Server 2008 R2 and BranchCache on the Riverbed Services Platform
• Awarded the 2009 STAR Award for Best Practices in Emerging Company Support by the Service & Support Professionals Association