Riverbed Q2 sales come up short

Riverbed Technology's second quarter revenue missed expectations and the company acknowledged that it has more work to do integrating the recent acquisition of Opnet.

The company, which focuses on wide area networking optimization and application performance, reported a second quarter net loss of $16.5 million, or 10 cents a share, on revenue of $250 million, up 26 percent from a year ago. Non-GAAP second quarter earnings were 22 cents a share.

Wall Street was expecting second quarter earnings of 22 cents a share on revenue of $257.7 million. In a statement, Riverbed CEO Jerry Kennelly said that core revenue excluding Opnet was $215 million. Opnet added $40 million in sales, but "we still have work to do integrating the two companies," said Kennelly, who added that Riverbed hopes to accelerate revenue growth going forward.

On a conference call, Kennelly elaborated on the Opnet deal:

We made steady progress completing back-office integration, including IT and HR, and the engineering teams are engaged productively as we demonstrated with the product announcements during the quarter. As you know, we began the integration of the sales teams in April. We progressed through major milestones in the second quarter including the realignment of territories and quotas, as well as some of the sales leadership changes. We are pleased with the progress we are making, but with the activities remaining, it is clear that this work will be in process for another quarter or so.