Thu, Jan. 29, 4:07 PM| Comment!
Wed, Jan. 28, 5:35 PM
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Dec. 15, 2014, 9:12 AM
Dec. 15, 2014, 8:43 AM
Nov. 17, 2014, 4:09 PM
- Riverbed's (RVBD +0.1%) agreement with Elliott (11.1% stake) prohibits the activist investor from acquiring additional shares, making a buyout offer, or proposing some other kind of "extraordinary transaction," until Nov. 14, 2015. (SEC filing).
- However, Elliott isn't prohibited from nominating directors, or from making public statements regarding its nominees.
- Riverbed has spurned Elliott's $21/share buyout offer. However, the company recently promised to "explore strategic and financial alternatives." It also shook up its board in September.
Oct. 27, 2014, 4:48 PM
- NetApp (NASDAQ:NTAP) is acquiring Riverbed's (NASDAQ:RVBD) SteelStore backup/recovery storage appliance line for $80M in cash. NetApp expects to start offering the products in FQ3 (its January quarter).
- SteelStore systems use both deduplication and compression to cut down on storage usage. They work with primary storage systems from NetApp and 3rd-party vendors, as well as various cloud storage platforms.
- The purchase arguably plugs a hole in NetApp's product line relative to EMC, which has been offering its Avamar backup/recovery appliances (also supports deduplication and compression) for a while. NetApp and EMC once waged a bidding war (won by EMC) for leading deduplication system vendor Data Domain.
- Riverbed, meanwhile, is in the middle of a strategic review that reportedly includes M&A talks.
Oct. 23, 2014, 4:06 PM| Comment!
Oct. 22, 2014, 1:36 PM
- Sources tell dealReporter Riverbed (RVBD +2.6%) plans to contact potential buyers next week. Shares have spiked higher after previously trading near breakeven.
- The WAN optimization hardware leader announced on Oct. 9 (along with a Q3 warning and job cuts) it would explore strategic and financial alternatives," as long sought by Elliott Management. Q3 results arrive tomorrow.
Oct. 9, 2014, 8:48 AM
- Riverbed Technology (NASDAQ:RVBD) +3.2% premarket after saying it will review strategic and financial alternatives to enhance shareholder value, and that it has initiated a restructuring plan with the aim of reducing annual costs by $20M-$25M and improving annual operating margins by 1%-2%.
- RVBD also issues downside guidance for Q3, lowering EPS to $0.30-$0.31 from prior $0.30-$0.32 vs. $0.31 analyst consensus estimate, and lowering Q3 revenues to $276M-$277M from $285M-$291M vs. $286M consensus, primarily reflecting lower than expected growth in its WAN Optimization and virtual ADC businesses.
Sep. 10, 2014, 2:51 PM
- “Riverbed’s (RVBD +1.3%) announcement today sends a clear message to shareholders: We don’t care what you think," says Elliot Management, reiterating its $21 per share offer for the company.
- "Going against every modern principle of shareholder engagement and good corporate governance, Riverbed’s board has decided to ignore the wishes of shareholders on every count," including, says Elliot, keeping a board member who was voted off, failing to signal any change in the compensation plan, and holding onto its poison pill.
- "The board’s decision today indicates that these directors are simply not interested in working with shareholders constructively."
- Previously: Riverbed expands board, rejects director's resignation
Sep. 10, 2014, 10:57 AM
- Riverbed Technology (RVBD +0.3%) says it has added two new directors, expanding the size of its board to nine members, while making changes to its executive pay structure.
- RVBD says the board changes mean that seven of its nine directors are independent; it also declined to accept the resignation of board member Mark Lewis, who had offered to quit in May after failing to receive a majority of non-binding shareholder votes at the annual meeting.
- Elliott Management, which recently owned more than 10% of RVBD shares, has been critical of the company's operations and management.
Aug. 18, 2014, 4:35 PM
- Riverbed (NASDAQ:RVBD) has hired Paul Mountford, once a senior Cisco sales exec, to be its chief sales officer.
- Mountford will be in charge of "all aspects of direct and indirect sales," and report to field operations chief David Peranich. Peranich will have an "expanded focus on sales strategy and direction."
- At Cisco, Mountford was once in charge of the networking giant's enterprise sales ops, and was also the company's first emerging markets sales chief. More recently, he's been the CEO of Web intelligence software provider Sentillian.
- The hiring comes a month after Riverbed issued a Q2 warning blamed on longer sales cycles for major North American deals.
Jul. 25, 2014, 12:31 PM
- Riverbed (RVBD +3.3%) guided on its Q2 CC (transcript) for Q3 revenue of $285M-$291M and EPS of $0.30-$0.32. However, it also expects full-year revenue growth of 7%-8% (above a 6.4% consensus), and EPS growth at or near a targeted 20% range (consensus is for 14% growth). Moreover, a soft Q3 outlook was expected following the company's July 14 Q2 warning.
- Though officially missing consensus, Q2 revenue (hurt by U.S. government deal slippage) was in-line with the guidance provided in the warning. Riverbed still expects its core WAN optimization hardware ops to show "upper single-digit" 2014 revenue growth.
- Riverbed's WAN optimization and application delivery controller (ADC) revenue rose 4% Y/Y in Q2, and was 78% of total revenue. Sales of SteelFusion branch-office appliances (optimize access to data center computing/storage resources, recently refreshed) more than doubled Y/Y. Sales of SteelCentral network performance management (NPM) software, the product of the Opnet acquisition, rose 2% Y/Y, and was 22% of revenue.
- SteelApp ADC revenue rose 6% Y/Y to $13M. In an attempt to score larger enterprise deals - F5 rules the roost here - Riverbed plans to launch a physical ADC appliance to complement its current software-based offerings.
- A 4% Y/Y drop in opex helped minimize the EPS damage done by the Q2 revenue shortfall, as did $75M in buybacks. Management faced some pointed CC questions about sales execution and deal timings.
- Shares remain 12% below Elliott Management's $21/share offer price.
- Q2 results, PR
Jul. 24, 2014, 4:12 PM| Comment!
Jul. 14, 2014, 9:50 AM
- Riverbed (NASDAQ:RVBD) expects Q2 revenue of $264M-$265M, below prior guidance of $270M-$280M and a consensus of $277.4M. EPS is expected to be at the low end of a $0.26-$0.28 guidance range; consensus is at $0.27.
- The WAN optimization hardware leader blames longer sales cycles for "larger and more complex" North American deals. Cost controls allowed it to hit EPS guidance in spite of the revenue shortfall.
- Q2 results are due on July 24. Shares are now 9% below Elliott Associates' $21/share offer price.
- Update: Elliott responds to the news by reaffirming its offer, and calling the warning proof Riverbed's decision to reject buyout offers is "a serious and costly mistake."
May. 22, 2014, 5:58 PM
- At the company's annual meeting, a proposal to re-elect Riverbed (RVBD) lead independent director Mark Lewis failed to receive a majority of votes cast. A non-binding proposal to approve executive compensation also didn't get a majority of votes cast.
- Lewis, a former EMC exec, has offered to resign from Riverbed's board. The board plans to "carefully" consider Lewis' offer.
- The votes come as Riverbed continues to reject Elliott Associates' $21/share buyout offer. Riverbed says it's "mindful of the strong connection between the re-election vote and the fact that Riverbed's stockholder rights plan was not submitted to a vote."
RVBD vs. ETF Alternatives
Riverbed Technology Inc provides application performance infrastructure. It offers a platform to give enterprises visibility to deliver, control, and optimize IT resources across the hybrid enterprise.
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