Riverbed: Fiscal 3Q13 Financial Results
Revenue expected to be up between 13% and 15% Y/Y for 4Q13
This is a Press Release edited by StorageNewsletter.com on November 5, 2013 at 2:42 pm| (in US$ million) | 3Q12 | 3Q13 | 9 mo. 12 | 9 mo. 13 |
| Revenues | 218.6 | 261.7 | 599.5 | 757.8 |
| Growth | 20% | 29% | ||
| Net income (loss) | 24.7 | 3.8 | 49.8 | (20.8) |
Riverbed Technology, Inc. reported financial results for its third quarter ended September 30, 2013 (Q3’13).
GAAP revenue for Q3’13 was $262 million, compared to $219 million in the third quarter of 2012 (Q3’12), representing 20% year-over-year growth. GAAP net income for Q3’13 was $3.8 million, or $0.02 per diluted share, compared to GAAP net income of $24.7 million, or $0.15 per diluted share, in Q3’12.
Non-GAAP revenue for Q3’13 was $265 million, an increase of 21% compared to $219 million in Q3’12. Non-GAAP net income for Q3’13 was $43.3 million, or $0.26 per diluted share, compared to non-GAAP net income of $46.1 million, or $0.28 per diluted share, in Q3’12.
“In a mixed economic environment, which was particularly evident in the government vertical, Riverbed delivered solid third quarter results,” said Jerry M. Kennelly, Riverbed chairman and CEO.
“Strong margin performance and prudent expense control drove higher profitability in the quarter,” continued Kennelly. “We further demonstrated our commitment to driving shareholder value by executing a $50 million stock repurchase during the quarter, continuing our track record of returning a substantial amount of free cash flow to investors in the form of share repurchases.”
Q3’13 Business Highlights
- Extended Steelhead WAN optimization product family with the addition of a new hardware appliance and upgrades to Steelhead software with RiOS 8.5
- RiOS 8.5 introduces Path Selection which allows IT organizations to cost-effectively deploy and manage complex hybrid networks ensuring the right path and service level for each application with no impact to end user experience.
- RiOS 8.5 integration with Cascade Profiler software helps IT managers meet application SLAs
- New Steelhead CX 255 series appliance brings enterprise WAN optimization cost-effectively to every branch office offering the same benefits found in larger Steelhead WAN optimization solutions, including decreasing bandwidth utilization by up to 98% and improving application acceleration up to 100 times faster
- Integration of the Cascade and OPNET product families introducing a single appliance combining application-aware network performance management and application performance management. The integrated solution provides end-to-end performance management giving customers a single solution to maximize performance, availability and productivity of critical applications.
- Introduced new higher capacity, higher performance Granite appliance and added support for FC
- Announced alliance with Joyent to launch Stingray and Joyent Content Delivery Cloud. The new offering combines Joyent’s public cloud infrastructure with Stingray ADC software to improve performance and flexibility while reducing costs compared to the traditional content delivery network.
- Awarded certification under the J.D. Power 2013 Certified Technology Service and Support Program for the third consecutive year. This certification acknowledges excellence in delivering service and support on a worldwide basis, with customer satisfaction scores among the top 20% of companies nationwide offering technology support.
Recently appointed executives:
- Kate Hutchison, SVP and CMO; joins Riverbed from executive marketing roles at Polycom, VMware, Citrix, and BEA Systems
- Ginna Raahauge, SVP and CIO; joins Riverbed from Cisco where she was responsible for the technology platform for Cisco’s global order through invoice process and revenue recognition
Comments
Abstracts the earnings call transcript: Ernest Maddock, CFO: "Total application acceleration revenue was $209 million and represented 79% of total revenue, compared to 92% a year ago. "Within application acceleration, Steelhead and Granite were $192 million, up 1% year-over-year; while Stingray ADC was $16 million, up 53% compared to last year. "Performance Management contributed $56 million or 21% of total revenue. These products, in particular, were impacted by weaker spending in the government vertical. "Turning to distribution. 88% of our third quarter revenue came from indirect channels, while 12% was sold direct. 2 distributors represented more than 10% to revenue in the quarter with Arrow at 19% and OPNET at 12%. We had no 10% end-user customers in the quarter. "Relative to year-on-year comparatives, we saw growth across all major geographies with 63% of revenues coming from the Americas, 24% from EMEA and 13% from APJ. "With that context, our non-GAAP guidance is as follows: Total revenue is expected to be in the range of $270 million to $276 million, up between 13% and 15% year-over-year. Gross margins are expected to be in line with the September quarter, while operating expenses are expected to be between $150 million and $153 million, and we expect operating margins of approximately 24% and a tax rate in the mid-20% range. "We are guiding our earnings per share to between $0.26 and $0.27 based upon approximately 168 million shares outstanding."
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