Computer networking products maker Riverbed Technology Inc. (RVBD), reported a swing to a first-quarter loss from a profit a year ago, hurt mainly by acquisition-related costs and amortization expenses. Excluding items, earnings for the quarter improved, as revenues surged 35 percent.
Shares of Riverbed slipped six percent in extended trading as its earnings and revenues for the three-month period fell short of Wall Street expectations.
San Francisco, California-based Riverbed Technology reported a first-quarter loss of $8.1 million or $0.05 per share, compared to net income of $6.9 million or $0.04 per share last year.
Results for the quarter included amortization on intangibles of $26.3 million, up from $5.4 million last year. Acquisition-related costs increased to $4.6 million from $1.9 million last year.
Adjusted earnings, which excludes special items, improved to $0.23 per share from $0.20 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.24 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenue for the first quarter rose 35% to $246.14 million from $182.41 million a year ago. Analysts expected revenue of $261.15 million for the first quarter. "Non-GAAP revenue grew thirty-eight percent over the prior year and ten percent without the benefit of $52 million contributed by OPNET in the quarter," said Jerry Kennelly, chairman and CEO.
Kennelly noted that weak government spending and general economic softness impacted its results for the quarter.
Last October, Riverbed Technology agreed to acquire Opnet Technologies Inc. in a transaction with an equity value of $1 billion, expanding its extend its network performance management business.
RVBD closed Monday's trading at $14.85, down $0.04 or 0.27%, on the Nasdaq. In after hours, the stock further shed $0.96 or 6.46%.
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