Riverbed misses Q1 revenue target after cutting outlook

Summary:Riverbed falls below revenue expectations, even after the company lowered its outlook for 2012.

Even after cutting its financial earnings outlook earlier this year, Riverbed still missed the mark.

Riverbed reported first quarter earnings of $7 million, or 4 cents a share (statement). Non-GAAP earnings were 20 cents a share on a revenue of $183 million.

Wall Street was expecting Riverbed to report first quarter earnings of 20 cents a share on revenue of $186.1 million.

In January, Riverbed reduced its outlook for the year, instead expecting 18 percent to 22 percent revenue growth in the second, third and fourth quarters.

Riverbed CEO and president Jerry M. Kennelly commented in prepared remarks:

"In a seasonally difficult quarter, we completed a major product cycle and achieved results within our guidance range.

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.

For the second quarter, Wall Street is expecting Riverbed to report earnings of 23 cents a share on revenue of $202.04 million.

Key points:

  • Introduced Riverbed Granite, extending WAN optimization to support edge virtual server infrastructure, enabling IT departments to consolidate and manage all edge servers in the data center
  • Introduced Steelhead Cloud Accelerator, which combines Akamai's Internet optimization technology with Riverbed WAN optimization technology to deliver end-to-end optimization for SAAS applications
  • Unveiled a new framework for its worldwide Riverbed Partner Network program designed to accelerate partnership momentum and increase channel partners' performance across the entire Riverbed Performance Platform

Related:

Topics: Banking

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

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