I won’t spend 10 seconds wasting time on today’s “big event”, the European stress test – reminds me of the U.S. bank stress tests where almost everyone passes and the U.S. banks got to negotiate with the Fed the terms of the test. It’s like the Wizard of Oz, just don’t look behind the curtain and we can be content all is well in the world.
Riverbed Technology (RVBD) reported last evening (full report here) and what was a muted reaction in after hours has turned into a party today. A big difference than the reaction of Blue Coat Systems (BCSI) not a month ago. Aside from a solid report and nice rise in guidance Riverbed announced a “virtual” version of its main product (Steelhead) – boo yah! Now RVBD is a “cloud” play and we can increase its value by 30%. ;)
The company also announced a new “virtual” version of its flagship Steelhead WAN optimization product. Riverbed typically sells the software as an appliance, installed on a server; the company says the new version of the software is targeted at both virtual data centers and customers who want to install the software on specialized hardware.
We closed the position in early June which more or less marked the bottom (ding!) so we’ll look to rebuy if/when there is any serious pullback. But at this point, we can mark the stock ‘safe’ for the next 90 days until the next dog and pony show.
Riverbed Technology Inc (RVBD) posted better-than-expected second-quarter results spurred by growth in product revenue, and guided its third quarter above Street. For the second quarter, Riverbed reported net income of $6.6million, or 9 cents a share, compared with a net loss of $0.3 million, or break even a share, a year earlier. Excluding items, it earned 25 cents a share.
Revenue for the company rose 39 percent to $126.2 million. Product sales rose more than 40 percent.
Analysts were looking for earnings of 22 cents a share, excluding items, on revenue of $119.38 million, according to Thomson Reuters I/B/E/S.
Non-GAAP gross margin increased to 77.3%, compared to 77.1% in Q1’10 and 76.1% in Q2’09
The company, which provides technology that speeds up applications over networks, projected third-quarter earnings of 27 cents a share, excluding items, on revenue of $132 million to$136 million. Analysts were looking for earnings of 24 cents per share, on revenue of $126.39 million, according to Thomson Reuters I/B/E/S.
The company said it expects gross margins of 76 percent to 78 percent, roughly flat with the second quarter.
“Exiting the first half of 2010, we are poised to exceed our growth rate achieved in 2009, a period in which our revenue growth outpaced most technology peers,” he added.
Disclosure: No position