Monday, June 4, 2012

Riverbed Up 3% on Q1 Beat, Q2 View

Shares of data networking equipment vendor Riverbed Technology (RVBD) are up 94 cents, or 3.25%, at $30 in after-hours trading following the company’s release of Q1 revenue and EPS ahead of estimates, and a forecast for this quarter comfortably ahead of estimates.

Q1 revenue rose 27%, year over year, to $112.4 million, beating the average $109 million estimate, yielding profit per share of 20 cents, two cents better than expected.

On a conference call with analysts following the results, Riverbed management said the company sees EPS of 21 cents to 22 cents this quarter on sales of $117 million to $120 million. That compares to the average estimate of 20 cents and $114 million.

Optimizing wide-area networking (WAN) connections “continues to be a spending priority” for companies, said CEO Jerry Kennelly in a press release.

– Tiernan Ray, Barrons.com

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