Riverbed, an applications and wide area networking optimization company, cut its first quarter outlook amid "disruption in product sales" as it launches new platforms.
The company projected first quarter non-GAAP earnings of 19 cents a share to 21 cents a share on revenue of $183 million to $187 million. Wall Street was looking for non-GAAP earnings of 25 cents a share on revenue of $197.11 million.
CFO Randy Gottfried cut the outlook on Riverbed's fourth quarter earnings conference call. For 2012, Riverbed is looking at 18 percent to 22 percent revenue growth in the second, third and fourth quarters.
Jerry Kennelly, Riverbed's CEO, said the company's outlook is based on the last time the company launched a series of new products in 2008. The sales pipeline remains strong, said Kennelly.
The outlook from Riverbed overshadowed a solid fourth quarter. The company reported fourth quarter earnings of $20 million, or 12 cents a share, on revenue of $203 million. Non-GAAP earnings were 25 cents a share. Wall Street was looking for earnings of 24 cents a share on revenue of $200.8 million.
For 2011, Riverbed reported earnings of $63.8 million, or 38 cents a share, on revenue of $726.5 million.