real-time news and commentary for investors
Tuesday, Jul 30
Riverbed -14.8% AH on revenue miss, guidance; OPNET the main culprit
- Riverbed (RVBD) guides on its CC for Q3 revenue of $265M-$270M and EPS of $0.23-$0.24, below a consensus of $274.5M and $0.26.
- All product segments are expected to show Q/Q growth except for recently-acquired OPNET, which is expected to be flat.
- OPNET was also responsible for the Q2 revenue miss. The network management software unit posted Q2 sales of $40M, below guidance of $42M-$46M that itself disappointed investors. Riverbed CEO Jerry Kennelly: "We still have work to do integrating the two companies."
- Core revenue (dominated by WAN optimization hardware) grew 7% Q/Q, in-line with guidance for 6%-7% growth. Non-WAN optimization/OPNET product sales (inc. Granite and Stingray) +50% Y/Y.
- Riverbed is still cautious about U.S. federal spend, and calls the macro environment "mixed."
- Deferred revenue totaled $310.9M, +5% Q/Q.
- Q2 results, PR