Riverbed: Fiscal 3Q12 Financial Results

(in US$ million)	3Q11	3Q12	9 mo. 11	9 mo. 12
Revenues	189.8	218.6	523.6	599.5
*Growth*		15%		*14%*
Net income (loss)	19.3	24.7	43.7	49.8

Riverbed Technology, Inc. reported financial results for its third quarter ended September 30, 2012 (Q3’12).

GAAP revenue for Q3’12 was $219 million, an increase of 10% compared to $198 million in Q2’12 and an increase of 15% compared to $190 million in Q3’11.

GAAP net income for Q3’12 was $25 million, or $0.15 per diluted share, compared to $18 million, or $0.11 per diluted share, in Q2’12 and $19 million, or $0.12 per diluted share, in Q3’11.

Non-GAAP revenue for Q3’12 was $219 million, an increase of 10% compared to $199 million in Q2’12 and an increase of 15% compared to $191 million in Q3’11. Non-GAAP net income for Q3’12 was $46 million, or $0.28 per diluted share, compared to $37 million, or $0.23 per diluted share, in Q2’12 and $40 million, or $0.24 per diluted share, in Q3’11.

"The results we are announcing today reflect Riverbed’s position as a leader in the evolution to the software defined data center," said Jerry M. Kennelly, president and CEO. "Sales of new products continued to ramp in the third quarter, and we saw strong enterprise growth as customers embrace Riverbed as a strategic vendor whose products deliver the best performance and highest availability."

"Healthy revenue growth and good cost control generated record profits," added Randy S. Gottfried, CFO. "Cash and investments grew by more than $100 million and totaled more than $670 million at September 30, 2012."

Financial Highlights

Total revenue increased 10% sequentially and 15% year-over-year to record $219 million
Product revenue increased 12% sequentially and 9% year-over-year to record $145 million
Record Non-GAAP gross margin of 79.6%, compared to 77.8% in Q2’12
Non-GAAP operating profit increased 26% sequentially and 10% year-over-year to record $63 million
Non-GAAP net income increased 23% sequentially and 15% year-over-year to record $46 million
Total cash and investments of $670 million at September 30, 2012, compared to $550 million at June 30, 2012, and $559 million at September 30, 2011