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

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Comments (2)
  • anomaly1
    , contributor
    Comments (1086) | Send Message
    When the Opnet acquisition was announce I said this was going to be a problem.


    Guess I was right ON!
    30 Jul 2013, 06:25 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4208) | Send Message
    Lucky I went out of the company a while ago. Too many misses recently.
    30 Jul 2013, 10:11 PM Reply Like
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