Riverbed blames 'weak government spending' for missing Q1 earnings

Summary:As a result, Riverbed shares dropped by 9.5 percent to $13.44 after-hours trading.

Things didn't look good for Riverbed after publishing its first quarter earnings report on Monday afternoon.

The networking company reported a net loss of $8.1 million, or five cents a share (statement). Non-GAAP earnings were 23 cents a share on a revenue of $253 million.

Wall Street was expecting Riverbed to report first quarter earnings of 24 cents a share on revenue of $262 million.

As a result, Riverbed shares dropped initally by 9.5 percent to $13.44 after-hours trading.

CEO Jerry M. Kennelly shifted the blame in prepared remarks, attributing the miss to weak sales from government customers:

Non-GAAP revenue grew thirty-eight percent over the prior year and ten percent without the benefit of $52 million contributed by OPNET in the quarter. Despite weak government spending and general economic softness impacting results, WAN optimization revenue increased six percent year-over-year. Our market expanding products outside of WAN optimization and OPNET generated more than 40% year-over-year growth. Over the long-term, we believe our multi-product strategy to deliver unmatched application performance will allow us to accelerate the company’s revenue growth.

To recall, Riverbed acquired Opnet Technologies, a network management software provider, for nearly $1 billion back in October . Execs are banking on Opnet to better contribute to revenue and earnings results during the second half of 2013.

Topics: Tech Industry, Apps, Enterprise 2.0, Networking, Unified Comms

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.