Riverbed Profit, Earnings Hit New Levels in Q1

Riverbed Technology announced better-than-expected earnings and profit for its first quarter as demand for its technology surged in the United States and abroad.

For its first quarter, Riverbed Technology revenues rose a whopping 45 percent to $163.6 million, and the company realized a profit of $13 million, up from just $1.1 million a year earlier. The results exceeded Wall Street’s expectations.

In breaking out its revenues, Riverbed noted its product revenue increased 50 percent year-over-year to $112.2 million, while services revenue increased 36 percent year-over-year to $51.4 million.

Riverbed President and CEO Jerry Kennelly attributed the company’s impressive quarter results to growing demand for its solutions as companies worldwide embrace newer technologies including cloud computing and virtualization. Revenue increased 55 percent in the United States; 24 percent in Europe, the Middle East and Africa; and 51 percent in other regions.

“Riverbed’s technology allows enterprises to successfully implement strategic initiatives such as virtualization, consolidation, cloud computing, and disaster recovery without compromising performance. These trends continue to drive our growth,” he said in a prepared statement.

Following its earnings announcement, Riverbed’s shares rose 1.9 percent to $34.06 in after-hours trading.

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