In its first quarterly results as a public company, Riverbed Technology exceeded analyst expectations and fortified its already strong credentials as a leading vendor in the fast-growing WAN-optimization marketplace.
Revenue for the September quarter was $24.6 million, up 36% sequentially and 247% over results in the corresponding quarter last year. The consensus revenue estimate of analysts was set at $21.4 million. The company recorded an earnings-per-share loss of 2 cents versus cents in the preceding quarter and eight cents in the corresponding quarter last year. Again, the company beat analysts’ expectations, which were pegged at a loss of four cents per share.
Riverbed’s results won plaudits from pleasantly surprised analysts, who noted that the company is taking a leadership position in delivering WAN-optimization solutions for enterprises.
JMP Securities’ Samuel Wilson was among those impressed at Riverbed’s quarterly performance and its future prospects. Noted Wilson:
Riverbed is the darling of the WAN Optimization market both in terms of product and mindshare. . . .The company’s growth opportunities are significant, leading to potential for upside earnings surprises from the company.
On the basis of Riverbed’s results, the company appears to be taking share from its most its WAN-optimization rivals, including Packeteer, F5, and Citrix.