Riverbed Keeping Investors Happy

Posted Apr 23rd 2010 2:00PM by Tom Taulli
Filed under: Earnings Reports, Next Big Thing

Riverbed RVBD logo Last year, Riverbed Technology (RVBD) wound-up as the number two company on the Forbes America's Fastest-Growing Tech Companies list. Based on its latest earnings report, it looks like the company will maintain it top ranking.

Riverbed develops sophisticated networking technology -- called wide area network (WAN) optimization -- that helps with collaboration within companies. The solution is affordable and often has a quick payback.

More importantly, customer demand is definitely strong. In the quarter, revenues spiked 27% to $112.4 million. This was above the analyst consensus of $109 million.

Profits also beat estimates, with non-GAAP earnings coming to $14.8 million, or $0.20 per share, which is up from $9.2 million, or $0.13 per share in the same period a year ago. Cash flow from operations was $50 million.

What's more, Riverbed is bolstering its product line-up to capitalize on other opportunities, such as cloud computing.

In Friday morning trading, the shares of Riverbed were up 6% to $30.86. And while the price may seem high, it is to expected in light of the growth of the company, for which there are no signs that things will slow down any time soon.

Tom Taulli advises on business tax preparation and is also the author of a variety of books, including The Complete M&A Handbook. His website is at Taulli.com.

Tags: inthenews, Riverbed, RVBD