Riverbed: Fiscal 1Q12 Financial Results

Riverbed Technology, Inc. reported financial results for its first quarter ended March 31, 2012 (Q1’12).

GAAP revenue for Q1’12 was $182 million, compared to $164 million in the first quarter of 2011 (Q1’11), representing 12% year-over-year growth. GAAP net income for Q1’12 was $7 million, or $0.04 per share, compared to GAAP net income of $13 million, or $0.08 per diluted share, in Q1’11.

Non-GAAP revenue for Q1’12 was $183 million, an increase of 12% over the $164 million reported in Q1’11. Non-GAAP net income for Q1’12 was $33 million, or $0.20 per diluted share, compared to non-GAAP net income of $34 million, or $0.20 per diluted share, in Q1’11.

"In a seasonally difficult quarter, we completed a major product cycle and achieved results within our guidance range," said Jerry M. Kennelly, Riverbed president and CEO. "Looking ahead, we expect our new Steelhead, Granite, and Cascade products, along with Stingray and Whitewater, to form the basis for Riverbed’s next leg of growth as we continue to execute on our vision to deliver a complete performance platform. Our competitive position is strong, our addressable market is growing, and we are optimistic about the opportunity before us."

Business Highlights

• Launched Steelhead CX Series – dedicated WAN optimization appliances that overcome bandwidth and geographic limitations to make users more productive, data transfers faster, and applications perform seamlessly regardless of location.
• Introduced Steelhead EX Series – multi-function, enterprise branch office appliances that build on Riverbed’s WAN optimization solution and add a platform with more memory, SSDs, and CPU capacity to support the Virtual Services Platform (VSP) and Granite.
• Introduced Riverbed Granite, extending WAN optimization to support edge-VSI (edge virtual server infrastructure) that allows IT to consolidate and manage all edge servers in the data center.
• Introduced Steelhead Cloud Accelerator, a jointly developed solution that combines Akamai’s Internet optimization technology and Riverbed WAN optimization technology to deliver end-to-end optimization for SAAS applications.
• Positioned by Gartner in the Leaders quadrant of the 2012 Magic Quadrant for WAN Optimization Controllers authored by Joe Skorupa and Severine Real and published in January 2012.
• Delivered industry-first capabilities to the Cascade application-aware network performance management (NPM) solution. Cascade Profiler is a NPM solution to provide streamlined configuration for service monitoring across application delivery controllers including Riverbed Stingray Traffic Manager, F5 Local Traffic Manager, and others. Virtual Cascade Shark offers continuous packet capture and performance analysis in virtual environments.
• Announced Riverbed Performance Summit World Tour, a series of more than 50 conferences around the world to discuss strategies for improving IT performance with the Riverbed Performance Platform, a portfolio of IT solutions for the globally connected enterprise, and provide technical overviews, best practices in IT and solution demonstrations.
• Announced a new framework for its worldwide Riverbed Partner Network program designed to accelerate partnership momentum with new tools and resources and to increase channel partners’ competencies across the entire Riverbed Performance Platform.